How Long Do Claims Stay on Your Insurance?

When an insurance claim is filed, it creates a record that can influence future insurance coverage and premiums. This record-keeping process helps insurers assess risk and determine policy costs. Understanding how long these claims remain visible and impactful is a common concern for policyholders. The duration a claim “stays on your insurance” refers to the period it can affect an insurer’s decisions, rather than a permanent black mark.

Claims Information Systems

Insurance companies rely on specialized information systems to access an individual’s claims history. These databases collect and share data among insurers, providing a comprehensive overview of past losses. The Comprehensive Loss Underwriting Exchange (CLUE) is a prominent system that tracks both property and auto insurance claims. Information typically remains on a CLUE report for up to seven years, including policy details, dates of loss, types of claims, and amounts paid.

Another system, A-PLUS (Automated Property Loss Underwriting System), serves a similar role primarily for property claims. These systems allow insurers to evaluate an applicant’s past claim activity, informing their underwriting decisions. For life and health insurance, the Medical Information Bureau (MIB) serves as a key information exchange. The MIB stores coded data about medical conditions, hazardous avocations, and other health-related information reported by member insurers. These systems help insurers detect potential fraud and assess risk.

Claim Impact Duration by Insurance Type

The period a claim affects insurance rates and eligibility varies significantly by policy type. For auto insurance, at-fault accidents have the most significant and longest-lasting impact, often influencing premiums for three to five years. More serious incidents or multiple at-fault accidents within a short timeframe can extend this period. While not-at-fault accidents may still appear on a claims history, their effect on rates is less severe, and some states have regulations that prevent rate increases for such incidents. Comprehensive or collision claims, such as those for damage from weather or hitting an animal, might affect rates for about three years but carry less weight than liability claims.

Homeowners insurance claims also have a defined period of impact, affecting rates for five to seven years. Claims related to significant property damage, like water damage, theft, or fire, can lead to premium increases. The financial impact can be more pronounced for major claims or if multiple claims are filed within a few years. Insurers assess the frequency and severity of past claims when determining future premiums for homeowners policies.

For health and life insurance, the concept of a “claim” impacting future premiums differs from property and auto insurance. Underwriters review an applicant’s medical history to assess risk during the application process. This medical history, including past conditions, treatments, and test results, is relevant for five to ten years, though severe or chronic conditions can be considered indefinitely. Underwriters use this information to determine eligibility and set premium rates, as it relates to an individual’s projected health and longevity.

Influences on Claim Longevity

Beyond retention periods in claims databases, several factors determine how long a claim affects an individual’s insurance rates and insurability. The severity and type of claim play a significant role; a large liability payout from an at-fault auto accident, for example, will have a greater impact than a minor comprehensive claim for a broken windshield. Insurers view major losses as indicators of higher future risk.

Claim frequency is another factor. Filing multiple claims within a short span, even for minor incidents, can be more detrimental than a single, larger claim. This pattern suggests a higher propensity for future claims, leading insurers to perceive a greater risk and potentially increase premiums or even decline coverage. The determination of fault in an incident is also influential, as at-fault claims often result in higher and longer-lasting rate increases compared to not-at-fault incidents.

State regulations also vary, with some jurisdictions imposing limits on how long certain claims can be considered when setting rates. Individual insurer underwriting guidelines differ. Each insurance company employs its own methods for evaluating past claims, meaning the impact of a specific claim can vary between providers.

Reviewing Your Claims History

Individuals can review their claims history to ensure accuracy and understand how past events might affect their insurance. For property and auto claims, a CLUE report can be requested from LexisNexis once per year free of charge. This report details past claims, including dates, types of losses, and amounts paid. When reviewing the report, verify the accuracy of all listed information.

For health and life insurance, individuals can request their MIB consumer file from the Medical Information Bureau. This report provides coded information about medical conditions and other data reported by member insurers. Both CLUE and MIB reports are available annually at no cost.

If any inaccuracies or errors are found on a CLUE report, LexisNexis must be contacted directly to initiate a dispute. LexisNexis will then contact the reporting insurance company, which has 30 days to verify the information. Incorrect information on an MIB report can be disputed directly with MIB. Consumers also have the option to add a personal statement to their CLUE report to provide context for a claim, which can be helpful for future insurers.