How Long Do Auto Claims Stay on Record?

Auto insurance claims are recorded and can influence future insurance rates. Understanding how these claims are tracked and their potential impact is important for policyholders. Knowing the duration claims remain on record assists in making informed decisions about filing claims.

How Long Claims Stay on Insurance Records

Auto claims are retained in insurance databases for three to seven years. The active impact on insurance premiums often lasts five years. This retention period is an industry practice, not a legal mandate.

The Comprehensive Loss Underwriting Exchange (CLUE) is a primary database used by insurers, maintained by LexisNexis. CLUE reports contain detailed information about auto claims, including the policyholder’s name, date of birth, policy number, claim type, date of loss, and amount paid. This system allows insurance companies to access a consumer’s claims history when underwriting new policies or adjusting existing ones. The claim record can remain in the CLUE database for up to seven years.

How Claims Affect Insurance Premiums

Claims on your record can lead to increased insurance premiums, as insurers view them as indicators of higher risk. When an incident results in a claim, especially an at-fault accident, insurance companies may apply a surcharge. This surcharge period, during which premiums are affected, often lasts for three to five years.

The severity and type of claim play a role in the premium increase. A minor claim might result in a smaller increase compared to a major incident involving significant damage or injuries. Filing multiple claims within a short timeframe can have a compounding effect, signaling a higher risk profile to insurers and potentially leading to more substantial rate adjustments.

Factors Influencing Claim Impact

Factors influence how a claim impacts insurance rates. A key distinction is between at-fault and not-at-fault incidents. At-fault accidents, where the policyholder is responsible, are most likely to result in a premium increase. Not-at-fault accidents generally have less impact on rates, though frequent claims might still indicate a higher risk to some insurers.

The severity of the claim also matters; minor damage claims typically have a lesser effect than major incidents like total losses. Comprehensive claims, covering theft, vandalism, or weather damage, often have a minimal impact on premiums compared to collision or liability claims.

The frequency of claims, even minor ones, can signal increased risk. State regulations may limit how long certain claims affect rates, and individual insurer underwriting policies vary. A policyholder’s overall driving record can sometimes mitigate the impact of an isolated claim.

Checking Your Claims History

Individuals can access and review their personal auto claims history through a CLUE report. This report is generated by LexisNexis, a consumer reporting agency, and provides a comprehensive record of reported insurance claims. A CLUE report includes details such as the date of loss, type of loss, and the amount paid on the claim.

Under the Fair Credit Reporting Act (FCRA), consumers are entitled to one free CLUE report every 12 months. This report can be requested online or by phone directly from LexisNexis. Reviewing your CLUE report allows you to verify its accuracy and understand the information insurers use when determining your rates. If errors are identified, they can be disputed with LexisNexis, which is obligated to investigate and correct inaccuracies.