What is a CLUE report and how does it affect your insurance rates?

When insurance companies deciding on coverage and premiums, they typically request a Comprehensive Loss Underwriting Exchange (CLUE) report, which contains the history of claims for a given property or vehicle.

CLUE reports are primarily utilized by insurers, but consumers can request them to ensure their accuracy or to get information about a home or car they're considering buying.

Here's what you need to know about CLUE reports, what they include and how they impact your insurance.

A CLUE report provides a history of all insurance claims made on a specific property or vehicle over the past seven years. They're generated by analytics firm LexisNexis to help insurers decide whether to approve or deny coverage, how much coverage to provide and what premiums to charge.

Over 95% of home insurance companies and more than 99% of auto insurers rely on CLUE reports, according to LexisNexis.

The files contain a variety of information, much of it relating to specific claims and basic information regarding the policyholder at the time of the claim:

• Insurance company
• Policyholder's personal information and policy number
• Date of losses and claims
• Type of loss (water damage, fire, etc.)
• If the claim was denied
• Amount paid on the claim if approved

Policyholders can also add notations to their CLUE reports: If, for example, a homeowner gets rid of a dog after a dog-bite claim, according to the Wisconsin Office of the Commissioner of Insurance, "[they] can add this notation to the CLUE report for the property."

In 2023, LexisNexis launched C.L.U.E. Auto 360, which adds data from police records and other vehicle-specific sources outside of insurance claims that indicate damage.

The Fair Credit Reporting Act of 1970 gives individuals the right to ask for at least one free CLUE report for their property or vehicle each year. You can request a report from LexisNext online, by phone or by mail.

You'll need to provide your full name, date of birth, address, city, state and zip code, as well as your Social Security number and driver's license number.

You can't request a CLUE report about a property or vehicle if you are not the owner. But if you're buying a house or used car, you can ask the current owner to show you its CLUE report.

Since it can affect your coverage and rates, it's a good idea to review the information in your own report. Consumers have the right to dispute inaccurate information with LexisNexis.

You may receive a blank CLUE report but that doesn't mean there have been no claims: CLUE reports only keep information for seven years and a few insurers don't report claims to LexisNexis.

It's also possible there were problems with the car or house that the policyholder paid out of pocket to repair.

Insurers use CLUE reports to determine how likely it is that a claim will be filed in the future. A CLUE Property report will include prior losses from previous owners of a home while CLUE Auto will do the same for a used vehicle.

According to the Office of the Commissioner of Insurance, if a company can prove a correlation between a previous owner's loss and the probability of a future loss, it can use that information in determining coverage and rates. A claim relating to theft could indicate a car may be stolen again, according to Lexis-Nexis, while claims for fire damage might mean a home is in a wildfire zone.

More claims typically will mean higher premiums. But some claims — like one to cover a new roof or replacement tires — can indicate future repairs are less likely and lead to lower rates.

If you reach out. to your insurer, be clear about whether you're filing a claim or just making an inquiry, so that your report is accurate. Even a serious inquiry may be noted in your CLUE report and used to adjust your rates.

When shopping for insurance

Your CLUE report can influence your coverage and rates, so it's important to ensure it's accurate. Dispute any errors with LexisNexis before applying for insurance.

Before selling your home or car

A prospective buyer may ask the owner to see the CLUE report to get an idea what condition the property or vehicle is in, and what they may have to pay for insurance. A CLUE report can also show what improvements have been made—like that a roof was recently replaced or a security system was installed.

When buying a home

Insurance costs should be factored in when considering your monthly home payments and how much house you can afford. A CLUE report will show you what issues a property may have and what you might expect to pay for a policy.

Buyers can't request a CLUE report from Lexis-Nexis but they can ask the current owner for the CLUE Home Seller's Disclosure.

If you're in the market for a home, PNC Bank offers adjustable- and fixed-rate conventional mortgages, as well as FHA, VA and USDA loans. Eligible homebuyers can put as little as 3% down without private mortgage insurance and qualify for grants of up to $5,000 to help cover closing costs.

When buying a used car

A CLUE report on a preowned vehicle provides insight into its repair history and what you could face when trying to get auto insurance. If a car hasn't had any claims in the last seven years, it could mean lower rates for you

Available in all 50 states, Geico has among the lowest rates for auto insurance in the market. It offers numerous discounts, including ones for student drivers, safe drivers, anti-theft devices and a multi-car discount of up to 25%.

Available everywhere but Alaska, Louisiana and Massachusetts, Nationwide is one of the few top insurers to offer a pay-per-mile policy, which can save you money if you don't drive often, and a safe-driving discount worth up to 40%. It has a very low number of consumer complaints compared to similar carriers, according to the National Association of Insurance Commissioners.

CLUE reports not only provide important insights for insurance companies, but they can help buyers learn more about a car or home. Since CLUE reports can influence your insurance rates, review them periodically to make sure all the information is accurate.

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