Can Other Insurance Companies See Your Claims?
Understand how insurance companies access and utilize your claims history. Learn its impact on your policies and how to manage your data.
Insurance claims history plays a significant role in how insurance providers assess risk. This detailed record of past claims provides companies with insights into a policyholder’s potential for future losses. Understanding this history is important for consumers, as it directly influences their eligibility for coverage and the premiums they are quoted.
How Insurance Companies Access Claims Data
Insurance companies routinely access centralized databases to review an individual’s claims history when underwriting new policies or considering renewals. The primary mechanism for this in property and casualty insurance (such as home and auto) is the Comprehensive Loss Underwriting Exchange, widely known as CLUE. This database, maintained by LexisNexis, serves as a repository for claims data submitted by participating insurance carriers.
When an individual applies for a new insurance policy or requests a quote, the prospective insurer pulls a CLUE report. This report shows a history of past claims associated with the applicant, property, or vehicle. For auto insurance, companies also access driving records from state motor vehicle departments, which detail traffic violations and accidents.
Details of Shared Claims Information
CLUE reports compile information related to insurance claims for up to seven years. This includes the date and type of loss, such as a fire, theft, or vehicle accident. The report also indicates the amount paid out by the insurer for the claim and whether it was settled or denied.
Personal identifying information, such as the policyholder’s name and date of birth, is linked to these claims. For homeowners’ policies, the report includes the property address. For auto policies, it details specific vehicle information. Inquiries about potential claims might appear on these records, though formal claims or those with payouts are consistently recorded.
Impact of Claims History on Future Insurance
An individual’s claims history directly impacts their ability to obtain future insurance coverage and the premiums they will pay. Insurers analyze the frequency and severity of past claims to assess the likelihood of future claims. A history with multiple claims, even for minor incidents, can signal a higher risk, potentially leading to increased premium rates.
The recency of a claim also influences its impact; more recent claims have a greater effect on rates. Policyholders with a clean claims record often qualify for claims-free discounts, which can be lost following a claim, resulting in a premium increase. While claims information remains on a CLUE report for seven years, its impact on rates may lessen after five years, depending on the insurer. A history of numerous claims or specific types of losses can affect eligibility for certain policies or lead to non-renewal of existing coverage.
Accessing and Correcting Your Claims Report
Individuals have the right to obtain a copy of their claims history report, provided free of charge once every 12 months. These reports, such as the CLUE report, can be requested directly from LexisNexis, the consumer reporting agency that compiles them. This allows policyholders to review their information for accuracy and understand what insurers see.
If inaccurate information is found on the report, individuals can dispute it with LexisNexis. The dispute process involves LexisNexis contacting the insurance company that reported the data to verify its accuracy. The reporting company then has approximately 30 days to respond and provide supporting evidence. If the information is found to be incorrect or cannot be verified, it must be removed from the report. Consumers can also add a personal statement to their report to provide context for a claim, which will be included in future reports.