Get a CLUE Report If Your Home and Auto Insurance Rates Seem Too High
Auto and homeowners insurance rates have risen sharply in recent years. The average homeowners insurance policy costs $231 per month , and the average person pays almost $600 per year for minimum auto coverage (and more than $2,000 per year for full coverage). But just because insurance has become quite expensive for everyone doesn’t mean you should just settle for the premiums you pay. If insurance costs are draining your bank account, you’ll want to make sure your rates are calculated fairly. You can start by requesting a copy of the Comprehensive Loss Underwriting Exchange (CLUE) report.
What is a CLUE report?
A CLUE report is essentially a record of all insurance claims made on a property or vehicle over the past seven years, along with a “risk assessment.” The CLUE Report is a product of LexisNexis and is used by virtually all insurers to determine rates for your home or auto insurance. The report will include the date the claim was made, the insurance companies involved, the insured’s personal information, the type of loss and the outcome of the claim (as well as any amount paid).
Insurers can use this information to decide how risky it is to insure that piece of property. For example, if you (and/or previous owners) have filed multiple claims for water damage to your home, your insurer may decide the risk is too high and raise your rates. If your car has been stolen and damaged multiple times, your insurance company may charge more for full coverage since it is more likely to happen again.
CLUE reports do not always increase premiums. For example, if there is a claim for replacing the roof of your home, your insurer may conclude that you are less likely to make a claim in the near future and lower your rates as a result. But if your insurance rates are higher than expected or have recently risen sharply, your CLUE report could be key because, like credit reports, CLUE reports can be inaccurate.
How to get a CLUE report
You have the right to a copy of your CLUE reports – they are covered by the same law that gives you access to your credit and checking reports – the Fair Credit Reporting Act of 1970. You can request a free copy of CLUE. report for each property every year. Once you receive your report, you should review it carefully to ensure that all information is accurate. While you may not be able to verify the previous owners’ claims, you can at least verify that everything listed since you took possession is accurate. If this is not the case, you can ask LexisNexis to correct the report. You can also add notes to your CLUE reports that provide insurers with context or additional information. Both of these actions can result in lower rates, especially if erroneous statements are removed from the report.
CLUE reports are also helpful when you’re looking for a new car or home. You can’t get a HINT on things you don’t actually own yet, but you can ask the current owner for a copy. You can use the report the same way an insurance company would when assessing your risk. For example, if the home you’re considering has had several mold remediation claims in the last seven years, you may decide the risk is too great and walk away.
Of course, you can’t completely avoid risk or get insurance for free. But reviewing CLUE reports can ensure you’re paying a fair rate for insurance and can protect you from buying the wrong car or home.