Everyone knows that it is a good idea to be aware of what is on your credit report, but do you do the same with your CLUE report? Inaccurate information on a CLUE report can cost you money, and even cause you to lose your insurance coverage.
What is a CLUE Report?
CLUE stands for Comprehensive Loss Underwriting Exchange. The CLUE report is similar to your credit report, except it is for insurance. It gives a history on claims that you have made in the past, and tracks you as the driver as well as your vehicles. CLUE reports are used by both automobile and residential insurance companies when they are underwriting and making policy decisions.
- The MVR comes from the Department of Motor Vehicles
- The CLUE comes from an "independent source", a company called LexisNexis
For car insurance, the CLUE report will show a seven year history of any insurance claims (losses) that you have on file with any car insurance company. The report shows:
- the date of the claim
- the type of claim that was made
- amount paid on the claim
- policy number
-
insurance company name
How Is It Used?
When you apply for car insurance, your insurance company will order several different reports from information reporting companies to decide if they will write you a policy and what rate premiums you may have to pay based on your reported history.
In California, your insurance company will probably order a Motor Vehicle Report to verify driver information, such as traffic violations and license suspensions. In addition, many insurance companies may order a CLUE report to verify information about previous insurance claims that you have included on your application. The CLUE report can cause:
- your policy to be denied or cancelled if already in place
-
your initial rate to be higher or your premium increased
Your Rights
Under California insurance law, you have the right to see the contents of your CLUE report. In the same way that you may request one free annual credit report from each of the credit reporting agencies, you may also request one free copy of your CLUE report each year from LexisNexis.
- You have the right to receive the report within 60 days of requesting it
- If the information in the CLUE report is inaccurate or incomplete, you have the right to dispute it
- Information that is incorrect or unverified should be removed from the CLUE report within 30 days
You have the right to be told by your insurance company that information they received from an independent source (such as the CLUE report) was a reason why your policy was denied or cancelled or was the reason your premium rate was increased.
Get Legal Help
If you have been denied insurance, had your insurance cancelled or are paying a premium that you believe is the result of an inaccurate CLUE report and you are getting nowhere with your insurance company, talk to an attorney. An attorney can get the attention of your insurance company, and can represent you. If you need help disputing information on your report, contact an attorney. Insurance laws can be confusing; use professional help to get the best results.
