How your claims history affects car insurance

Why insurers care about past claims

Insurers use your claims history because people who have filed claims before tend to file more in the future. The NAIC lists claims history among the standard factors that affect car insurance premiums, alongside your driving record. Claims are also expensive: the NAIC found the average collision claim was $7,191 in 2022.

Your claims history and your driving record are related but different. Your driving record, kept by the state DMV, shows traffic convictions. Your claims history, kept by private consumer reporting companies, shows claims filed with insurers, including crashes that never led to a ticket.

What is a CLUE report?

C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. It is a claims history database run by LexisNexis Risk Solutions, a consumer reporting company. LexisNexis describes C.L.U.E. Auto as an exchange of up to 7 years of personal auto claims information, contributed by 99.6% of the auto insurance industry according to the company. Because it is a consumer report, it is covered by the federal Fair Credit Reporting Act. LexisNexis says insurers use it when pricing a new policy, when a driver is added to a policy and at renewal, to catch claims filed with other companies.

What a CLUE report contains

The Tennessee Department of Commerce and Insurance lists these details:

• your name and date of birth
• your policy number
• the date of each loss
• the type of loss
• the amount the insurer paid
• a description of the vehicle or property involved

When insurers report a claim

According to the Tennessee department, insurers report to the database when they pay money on a claim, open a file for a possible claim, or formally deny a claim. Calling your insurer only to ask about coverage or your deductible should not be reported as a claim, according to LexisNexis guidance cited by the department.

Other claims databases

C.L.U.E. is not the only one. The Consumer Financial Protection Bureau (CFPB) publishes a list of consumer reporting companies, including specialty companies that insurers use. Under personal property insurance, it lists:

The CFPB also notes that some of these companies may share driving behavior data with auto insurers. If you have used a telematics program or an app that tracks your driving, it can be worth checking these reports too. See telematics.

How to get your claims history report

1. Go to the LexisNexis consumer portal. LexisNexis says the FACT Act gives you one free copy in any 12-month period of your consumer report. You can request it online, by phone or by mail.
2. Check the CFPB's list of consumer reporting companies and request reports from any others that cover insurance.
3. Review each entry. Check dates, amounts, the vehicle, who was driving and whether the claim was closed with no payment.
4. If an insurer took adverse action based on a report, such as charging more or refusing coverage, it must tell you which company supplied the report. You can then request a free copy.

How to dispute errors in your claims report

The CFPB explains that you have a legal right to dispute the content of a report, free of charge, with both the reporting company and the company that supplied the information. The reporting company must carry out a reasonable investigation.

1. Contact the reporting company (for C.L.U.E., the LexisNexis Consumer Center) and explain what is wrong.
2. Send documents, such as a letter from your insurer, a police report or proof that a claim was withdrawn.
3. Wait for the result. The Tennessee department says LexisNexis verifies the information with the insurer and reports back within 30 days.
4. Add a statement if the item stays on your report. The Tennessee department says it will appear on future reports.
5. Contact the insurer that reported the claim to ask it to correct its records.

Do not-at-fault claims count?

Whether a claim you did not cause affects your price depends on your state and your insurer. A claims database may still list a not-at-fault claim, because the insurer opened a file or paid money. What matters is how the insurer uses it.

Some states set rules. In California, a driver is presumed not principally at fault in situations such as these:

California also says an accident counts against you only if you were at least 51% responsible and it caused injury, death or more than $1,000 in property damage. Check your own state's rules with your state insurance department.

Comprehensive claims, such as hail, theft or a cracked windshield, are generally not treated as at-fault accidents. Some insurers still consider how many claims you file overall. See windshield and glass claims.

Should you file a small claim?

Every claim you file can appear in your claims history. That is a reason some drivers pay for small repairs themselves. There is no single right answer, but these steps help you decide:

1. Get a repair estimate and compare it with your deductible.
2. Ask your insurer or agent how a claim of that type would affect your price. Asking about coverage or your deductible should not, by itself, be reported as a claim.
3. Think about injuries. If anyone may be hurt, report the accident to your insurer as your policy requires. Injury claims can grow long after the crash.
4. Check your policy's reporting rules. Most policies require you to report accidents promptly, even if you do not file a claim.

See filing a claim and rate increase after a claim.