When Do Claims Come Off Your Insurance Record?

An insurance claim is a formal request made by a policyholder to an insurance company for compensation or coverage for a covered loss or policy event. Understanding how claims are recorded and their duration on your insurance record is a frequent concern for policyholders. The length of time a claim remains relevant can influence future insurance premiums and the availability of certain policies.

Understanding Claim Reporting

When an insurance claim is filed, details are typically entered into industry-wide databases. These centralized systems allow different insurers to access a policyholder’s past claim history. The purpose of these records is to provide a comprehensive view for insurers when they are underwriting new policies or evaluating renewals.

The information commonly recorded includes the date of loss, the type of loss, and the amount paid out by the insurer. It also notes whether the claim was denied or if it was an at-fault incident. These records help insurers assess the risk associated with insuring a particular individual or property.

Standard Durations by Claim Type

For auto insurance, an at-fault accident claim impacts your premiums for three to five years. Not-at-fault claims, such as those involving comprehensive coverage for hail damage or a collision where you are not liable, have a lesser impact, often for a similar timeframe but with less premium influence. The severity of the claim, measured by the payout amount, also plays a role in how long it affects your rates within this period.

Homeowners insurance claims, including those for water damage, theft, or fire, remain on your record for a longer period. These claims can influence your premiums and policy availability for five to seven years. While recorded, its impact on your rates diminishes over time.

While claim data is retained in industry databases for about seven years, the practical impact on your premiums can vary. Some minor claims have a shorter impact, while more substantial or frequent claims affect rates for the full seven years. This duration allows insurers to properly evaluate the risk based on a homeowner’s or driver’s claim history.

Influences on Claim Record Retention

While standard durations exist, several factors influence how insurers perceive and weigh past claims. State regulations may impact how long claims data can be used in underwriting decisions. The overall cost and severity of a claim, meaning the total amount paid out, prolong its relevance to an insurer.

The frequency of claims is important. Multiple claims within a short period, even if individually minor, indicate a higher risk profile to insurers. This leads to a longer-lasting impact on policy availability or premium rates.

Individual insurance companies have their own underwriting policies, within regulatory limits, regarding how they weigh historical claims. This means that while industry standards exist, one insurer may assess a claim history differently than another. The specific type of loss, such as a weather-related event versus a claim due to negligence, can also be assessed differently by insurers.

How to Review Your Claims History

Individuals can access their insurance claims history through specific consumer reporting agencies. The Comprehensive Loss Underwriting Exchange, commonly known as CLUE, is a primary database for personal property and casualty insurance claims. Managed by LexisNexis, this report provides a detailed record of claims filed against your auto and homeowners policies for up to seven years.

You are entitled to one free CLUE report annually, similar to how you receive a free credit report. You can request this report directly from LexisNexis online or by phone. The report includes the date of loss, the type of loss, the amount paid, and the policy number associated with the claim.

Reviewing your CLUE report is a valuable step to ensure the accuracy of your claims history. This allows you to understand the information insurers use when determining your rates and eligibility.