Can Insurance Companies See Previous Claims?
Previous claims impact your insurance. Understand how insurers access your history, what data they see, and how to manage your claim report for better rates.
Insurance companies can see your previous claims. This access to claims history is standard practice, allowing them to assess risk when evaluating new applications or renewing policies. This information helps insurers determine appropriate coverage and pricing.
Sources of Claim Information for Insurers
Insurers use specialized databases to access past claims information. The primary mechanism for property and auto insurance is the Comprehensive Loss Underwriting Exchange (C.L.U.E.) report, generated by LexisNexis. This report details claims reported by insurance companies for a specific property or vehicle. Insurers use C.L.U.E. reports during the underwriting process for new policies to evaluate risk and set premiums.
For life and health insurance, the Medical Information Bureau (MIB) serves a similar function. The MIB is a not-for-profit organization that maintains coded information about medical conditions and hazardous activities reported during past insurance applications. Member companies use MIB reports to verify information provided by applicants and to detect potential fraud.
Beyond these industry-specific databases, insurers may consult other sources. State Department of Motor Vehicles (DMV) records provide driving history, including violations and accidents, relevant for auto insurance. Some insurance types may also consider credit reports to generate credit-based insurance scores, as credit history can correlate with claim likelihood.
Scope of Visible Claim History
The information available to insurers through these reports is detailed. A C.L.U.E. report for property or auto insurance includes the policyholder’s name, date of birth, policy number, and specific claim information. This includes the date and type of loss (e.g., collision, fire, water damage), whether the claim was paid, and the amount paid by the insurer. For homeowners, it includes the property address; for auto, specific vehicle details.
C.L.U.E. reports contain up to seven years of personal property and auto claims history. MIB reports include coded data about medical conditions, hazardous activities, and prior life insurance application activity over the last three to seven years. These codes alert insurers to underwriting information, prompting further investigation rather than providing full medical records.
The reports highlight all claims, including those denied or closed without payment. For example, an auto C.L.U.E. report shows a collision claim with the driver’s name, policy information, and the payout amount. A home C.L.U.E. report lists claims made on the property, even if filed by a previous owner, though the impact of such claims on a new policyholder can vary.
Impact on Insurance Coverage and Costs
A visible claims history can directly influence an insurer’s underwriting decisions. Insurers analyze past claims to predict the likelihood of future incidents. An elevated claims frequency or severity often indicates a higher risk profile.
This increased risk can result in higher premiums for the policyholder. At-fault auto accidents commonly lead to surcharges, increasing car insurance rates. Multiple property claims can also affect homeowner’s insurance rates.
A history of numerous claims or specific types of losses may lead to changes in policy terms, such as increased deductibles. In severe cases, an insurer may deny coverage or opt for non-renewal of an existing policy. This is more probable with serious traffic violations, multiple at-fault accidents, or frequent property claims, as the policyholder may no longer meet risk criteria.
Accessing and Correcting Your Claim Data
You are entitled to access your claims history reports under the federal Fair Credit Reporting Act (FCRA). For C.L.U.E. reports, you can request a free copy annually from LexisNexis. This can be done online, by phone, or through mail.
You can obtain a free copy of your MIB report annually by contacting the MIB Group directly, either online or by phone. These reports are provided to you free of charge.
If you identify inaccuracies on your C.L.U.E. report, such as an invalid claim or an incorrect payout amount, you can dispute the information with LexisNexis. They are required to investigate the discrepancy with the reporting insurance company and notify you of the results within 30 days. For MIB reports, you can also file a dispute if you find errors. The MIB will investigate and work with the insurance company to correct any verified inaccuracies.