CLUE Report Guide

An insurance claims history report is a list of all the car insurance claims an individual has filed over the past 5-7 years. Most car insurance companies will check a driver's insurance claims history report before issuing a policy in order to assess their risk.

LexisNexis generates the most common claims history report from its “C.L.U.E.” database, which stands for Comprehensive Loss Underwriting Exchange. Since drivers might forget or misrepresent their claims, C.L.U.E. is a centralized source of information that insurance companies can rely on.

Insurance Claims History Reports Include:

• Previous claims that insurers have paid
• Previous claims that insurers have denied
• The policy number and insurance company associated with each claim
• Information about specific vehicles
• Serious inquiries you have made to agents or adjusters
• Your name
• Your address
• Your date of birth
• Your SSN

Claims history reports may also include information about homeowner's insurance claims. You can request a free copy of your insurance claims history report once a year. For more information about getting a copy or disputing an error, check out WalletHub's complete guide to C.L.U.E. reports.

Yes, insurance companies share claims history with each other using databases such as C.L.U.E., which is run by Lexis Nexis and contains claims data from more than 99% of car insurance companies. Insurers can check a driver's claims history using C.L.U.E. if the driver wants a quote. Claims history information is important to insurance companies because drivers with a history of claims, especially at-fault claims, present more risk to insurers.

Insurance claims databases are the industry's equivalent of credit reports. Like credit reports, these databases are designed to provide a centralized record of a consumer's past behavior. This information helps insurance companies decide what premium to charge based on the individual driver. But rest assured that your claims history is only one factor that goes into your premium. Insurers will also consider characteristics such as age, driving record, location, and vehicle information.

For more information on insurance claims history databases and to learn how to check your claims history report for free, check out WalletHub's guide to C.L.U.E. reports.

You are considered a high-risk driver for 6 months to 10 years. It depends on how far back an insurance company looks in your official driving record and Comprehensive Loss Underwriting Exchange (CLUE) report for accident claims and moving violations, as well as the reason you were designated as risky in the first place. Not all auto insurance providers have the same rules regarding how long they consider someone a high-risk driver, and the “look back” time that insurance companies use when checking your driving record and claims history varies from company to company.

Often, drivers have to wait for points they've accumulated from traffic tickets and moving violations to fall off their driving record, or become too old for an insurer to see, before their insurance provider will stop considering them a high-risk driver. Insurance companies use their own points systems to determine how much of a risk a driver poses and then calculate rates accordingly, but they generally follow the same timeline as the DMV when it comes to having those points fall off your driving record. That could take anywhere from 3 to 10 years.

Most minor traffic violations, such as speeding tickets or single-car accidents, typically stay on a driving record for 3 years. Major violations, like getting a DUI/DWI or fleeing an officer, will usually remain on your record for 5-10 years. You can request a copy of your auto insurance company's point system, sometimes called a surcharge schedule, to get a better understanding of how accumulating points will affect your rate and how long the company may consider you a high-risk driver.

On the other hand, new drivers who have never had insurance, or drivers who have not maintained continuous insurance coverage, are usually only considered high-risk customers for the first term of their insurance policy (typically 6 months) so they can get established with a company or take steps to immediately improve their driving record, like by completing a defensive driving course. Teen drivers and adults with little or no history as an active driver are also considered high-risk drivers until they gain more driving experience.

Why Insurance Companies Could Consider You a High-Risk Driver:

• You're a teenage or senior driver.
• You get a major traffic violation, like a DUI/DWI.
• You accumulate enough points on your driving record (the threshold for rate increases is usually two or four).
• You don't have proof of at least six months of continuous insurance coverage.
• Your credit score is low, or you have no credit history.
• You rent rather than own your home.

The good news is you won't be considered a high-risk driver forever, as long as you start driving responsibly and let enough time pass for your past violations to stop showing up on your DMV record. However, if you continue to get tickets, have accidents and/or let your insurance coverage lapse, you could be considered high-risk for as long as you're an active driver.

Filing a claim will increase car insurance premiums from 3% to 32% on average for three to five years in almost all cases. How much your rate goes up depends on several factors, like the claim type and amount, your insurance company, your claims history, your location, and whether or not you have accident forgiveness.

The most significant factors affecting how much your rates go up after an accident are the claim type and amount. Accidents that you cause will raise your premium the most, especially if the damages are over $2,000. Although prices don't jump as much when you're not at fault or the incident was beyond your control, you'll probably still see a rate increase.

How much filing a claim increases car insurance rates:

It may seem unfair, but insurance companies are within their rights to raise your rates after a claim, even if the accident was not your fault. Insurers charge based on risk, and statistics show that you're more likely to make additional claims if you've recently filed one.

Some insurance companies charge more than others after not-at-fault accidents, though. Progressive charges the most, raising rates by more than 16% on average. State Farm, on the other hand, doesn't increase prices if their customer is not at fault.