CLUE Reports: What Insurance Companies Know About You

Every time you file an insurance claim — auto, home, doesn't matter — it goes into a database. That database is called CLUE, and insurance companies check it every time you apply for coverage. Think of it as your insurance credit score.

What's in Your CLUE Report

• Claim date: When the loss occurred
• Claim type: Water, fire, wind, theft, liability, auto collision, etc.
• Amount paid: What the insurance company paid out
• Property/vehicle: The address or VIN associated with the claim
• Policy information: Which carrier and policy was involved
• Inquiry history: Even INQUIRIES about filing a claim can show up

That last one is important. If you called your insurance company and asked "would this be covered?" — that inquiry might appear on your CLUE report, even if you never filed a claim.

How CLUE Affects Your Insurance

Insurance companies use your CLUE history to make three decisions:

1. Will we insure you? Multiple claims = higher risk. Some carriers decline applicants with 2+ claims in 3 years. An independent agent can shop 50+ carriers to find one that fits.
2. How much will we charge? Claims history directly affects your premium. One claim might add 10-25% to your rate.
3. Will we renew you? Too many claims during your policy term can trigger non-renewal.

The "Previous Owner" Problem

This catches home buyers off guard: CLUE reports are tied to BOTH the person AND the property address.

If you buy a house where the previous owner filed three water damage claims, those claims are associated with your new address. Insurance companies see that history and may:

• Charge you a higher premium
• Exclude water damage coverage (learn about coverage types)
• Decline to insure the property entirely

Always request a CLUE report on a property before you buy it. You can ask the seller to provide one, or request it yourself through LexisNexis once you have a purchase agreement.

Claims That Hurt vs. Claims That Don't

• Water damage claims: The WORST for your record. Carriers view water damage as likely to recur. Two water claims = very hard to insure.
• Liability claims: Serious red flag — especially if the payout was large.
• Wind/hail claims: Less impactful because they're weather-related (not your fault). Widespread storm claims are often "catastrophe coded" and don't count against you as heavily.
• Theft claims: Moderate impact. One theft claim is usually fine. Multiple = concern.
• Auto claims: At-fault accidents hurt more than not-at-fault. Comprehensive claims (hail, deer, glass) are less impactful.

How to Protect Your CLUE Record

1. Don't file small claims: If the damage is close to your deductible, pay out of pocket. A $1,200 claim on a $1,000 deductible nets you $200 but stays on your record for 7 years.
2. Don't call to "ask about coverage": Even inquiries can be recorded. Ask your agent instead of calling the carrier directly.
3. Check your report annually: Request your free CLUE report at personalreports.lexisnexis.com and dispute any errors.
4. Check property CLUE before buying: Avoid inheriting a bad claims history with a home purchase.
5. Use an independent agent: An agent with access to 50+ carriers can find you a carrier that's more flexible about claims history. Captive agents have one option.

Bottom line: Your CLUE report is your insurance reputation. Protect it the same way you protect your credit score — because it directly affects what you pay and whether you can get coverage.