What is a Clue Report?
A Clue Report, short for Comprehensive Loss Underwriting Exchange, is a report that insurance companies use to evaluate an individual’s claim history. It contains details about past insurance claims filed under auto or homeowner policies. The information in the report helps insurers assess risk and determine premium rates for policies.
Clue Reports typically include a person’s claim history for the past five to seven years, covering aspects such as the type of claim, claim amounts, and claim status (paid, closed, or still open). The report also includes property information (for homeowners) or vehicle details (for auto insurance), including damages and accidents.
For homeowners, a Clue Report can impact both the insurance rates and the approval process when buying or selling a property. For example, if a home has a history of frequent claims, an insurer might see it as a high risk and either increase the premium or deny coverage.
Similarly, auto insurance companies use Clue Reports to evaluate driving history, accident reports, and prior claims. A history of frequent claims or severe accidents can result in higher premiums.
Insurance companies rely on Clue Reports to make underwriting decisions, but consumers have the right to access and review their Clue Reports to ensure accuracy. Errors in the report can be disputed and corrected to avoid unnecessary premium increases.