When Do Insurance Claims Fall Off Your Record?

When an insurance claim “falls off” your record, it means the claim no longer significantly affects your insurance premiums or is removed from certain consumer reports. This process involves specific timelines related to databases used by insurance companies.

Understanding Claim Reporting Databases

Insurance companies rely on specialized databases to track claims history and assess risk. The primary system for personal auto and property insurance is the Comprehensive Loss Underwriting Exchange, known as a CLUE report. This report, generated by LexisNexis, serves as a centralized repository for claims data.

A CLUE report provides a detailed history of claims for an individual or property. It includes the policyholder’s name, policy number, date of loss, type of loss, claim status, and the amount paid.

Standard Retention Periods for Claim Information

Claim information remains on databases like the CLUE report for a specific duration. A CLUE report details personal auto and property claims history for up to seven years from the date of the claim. When a claim “falls off,” the data is no longer readily accessible to insurers through these consumer reporting systems.

While consumer reports have retention limits, insurance companies may retain internal records for longer periods. However, for underwriting new policies and assessing risk, information available through CLUE reports is the primary focus.

How Claims Influence Insurance Premiums

Past insurance claims often lead to adjustments in premiums, indicating a higher potential for future claims. Insurers analyze a policyholder’s claims history to gauge their risk profile. Even if a claim is listed on a CLUE report, its influence on premiums lessens over time, gradually diminishing before it completely “falls off” the report.

Insurance companies use a “look-back” period when calculating rates, which is often shorter than the CLUE report’s seven-year retention. This period typically ranges from three to five years, though it can vary among insurers and depending on state regulations. Older claims contribute less to the overall risk assessment, eventually reaching a point where they no longer significantly affect the rate.

Factors Affecting Claim Impact on Premiums

Several factors determine the extent and duration of a claim’s impact on insurance premiums. Whether the claim was at-fault or not-at-fault is a key differentiator. At-fault claims, where the policyholder is responsible for the incident, almost always result in a more substantial increase in premiums. Conversely, not-at-fault claims, such as those caused by another party or natural events, may still lead to premium adjustments, but generally to a lesser degree.

The type and severity of the claim also play a role. High-cost claims, particularly those involving liability or significant property damage, tend to have a greater and longer-lasting effect on rates. Additionally, the frequency of claims is a major factor; filing multiple claims within a relatively short period, even for minor incidents, can cumulatively impact premiums more negatively than a single, isolated event.

Accessing Your Personal Claim History

Individuals can obtain a copy of their CLUE report to review the information insurers use. Under the Fair Credit Reporting Act (FCRA), you are entitled to one free CLUE report annually from LexisNexis. This report can be requested directly from LexisNexis through their website, by phone, or via mail.

The report provides details about claims filed on your auto or property insurance policies, including the date of loss, type of claim, and amount paid. Review this report for accuracy. If you find inaccuracies or incomplete information, you have the right to dispute it with LexisNexis, which must investigate and correct verifiable errors within 30 days. You can also add a brief personal statement to your report to provide context for an existing claim.