How Long Do Insurance Claims Stay on Record?
Explore how long insurance claims remain on your record and influence future policies. Learn to access and manage your insurance claim history.
Insurance companies maintain detailed records of past claims. These claim histories are significant for both insurers and policyholders, playing a role in how insurance policies are underwritten and priced.
Understanding Claim Records
An insurance claim record is a comprehensive history of reported incidents and payouts. Insurers maintain these records for risk assessment, helping them evaluate potential policyholders and price new policies. This information provides insight into the likelihood of future claims, a key factor in determining premiums.
The Comprehensive Loss Underwriting Exchange (CLUE) report, generated by LexisNexis, is a key tool. CLUE reports are widely used for personal auto and property insurance claims. They contain specific details such as the date of loss, the type of loss, the amount paid by the insurer, the policy number, and relevant property or vehicle identification details.
CLUE reports do not include information like credit reports, civil records, or criminal records. Instead, they focus solely on insurance claims, including those where no payment was made or where the claim was denied. This detailed claims history helps insurers assess the risk associated with providing coverage.
Duration of Record Retention
Insurance claims remain on a CLUE report for five to seven years from the date of loss. This standardized retention period allows insurers to review a recent history of claims when evaluating new applications or setting renewal rates. The type of claim, whether property or auto, does not change this general retention timeframe on the CLUE report.
While the CLUE database has this specific retention period, individual insurance companies may retain their own internal claim records for longer, potentially indefinite, periods. These internal records serve the companies’ specific analytical and business purposes, which can extend beyond the data shared with CLUE. The phrase “staying on record” primarily refers to the availability and consideration of these claims for underwriting and pricing decisions within the industry’s common reporting systems.
The nature of a claim, such as whether it was an at-fault accident or a comprehensive claim, is recorded and can influence how insurers view the claim within that retention period. Even if a claim was reported but closed without payment, or if the damage was below the deductible, it may still appear on a CLUE report. This presence impacts how the claim is considered by insurers, even without a payout.
Impact of Claim History
The presence of claims on record, particularly those within the CLUE reporting period, can directly influence future insurance policies and their associated costs. Insurers often use claim history to predict the likelihood of future claims, which can lead to adjustments in premiums. Multiple claims, or certain types of claims like at-fault accidents, commonly result in higher insurance rates.
Claim history also affects a consumer’s insurability or eligibility for specific policies. Some insurers may decline coverage or provide limited options if an extensive claim history is present. This is because a history of claims indicates a higher risk profile for the insurer. Additionally, a reported claim can lead to the loss of claims-free discounts, which reward policyholders who have not filed claims over a certain period.
Accessing and Correcting Your Claim History
Consumers have the right to access their own claim history report. Under the Fair Credit Reporting Act (FCRA), individuals are entitled to one free CLUE report annually from LexisNexis, the consumer reporting agency that compiles these reports. This report can be requested online, by phone, or by mail directly from LexisNexis.
If any factual inaccuracies are found on a CLUE report, there is a process for dispute and correction. Consumers can contact LexisNexis directly to report errors, such as an invalid claim or an incorrect payout amount. LexisNexis is then obligated to investigate the dispute with the reporting insurance company and notify the consumer of the results. Only factual inaccuracies can be corrected or removed from the report, not valid claims that were accurately reported.