What is a CLUE report – and why is it costing you money?

You know that credit bureaus maintain detailed credit reports of your personal and confidential credit and loan history. But did you know that there's another report that tracks detailed information about the losses and insurance claims you report on the property you own? The report is called a CLUE Report, which is often insurance carrier shorthand for "loss history."

The Comprehensive Loss Underwriting Exchange database, or CLUE, contains a history of insurance claims and losses on insured individuals' property and automobiles. A CLUE report includes detailed information on every claim made on your property, including: 

•  The date of a loss
•  The type of claim made
•  The amount paid out by the insurance company.

Does CLUE Affect Your Insurance Rates?
Just like your credit report, your CLUE score can help or hinder your ability to get a good deal on your property insurance.

Depending on your carrier's policies, any claim you make will likely end up in the CLUE database. Here's the kicker: sometimes a simple inquiry you make to your insurance company may be noted and added to your CLUE report, even if you don't file a claim - affecting your rates. 

Choose your words wisely when talking to your carrier or a non-independent agent. When you call with a hypothetical question, make sure to be specific that you are making an inquiry only, and not reporting a claim. When you get your insurance through an independent agent or broker, it's less likely that questions you ask them will end up in your CLUE report, since they work for you - not for the carrier. 

How do you get a good CLUE report?
Making fewer claims is the best way to limit damage to your CLUE. Also, hold off on filing claims, especially for smaller losses. Raising your deductible may be one way to help yourself do this - while lowering your premiums as an added bonus. It's much cheaper, in the long run, to pay for less expensive damages out of pocket than to add to your claim history. Save your claims (and a negative entry on your CLUE report) for bigger losses, in order to save money on your insurance rates overall.


Questions? Call Dave at 303-834-1001.