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How Your CLUE Report Affects Insurance Quotes

Money Girl explains how little-known CLUE reports affect what you have to pay for insurance. 

By
Laura Adams, MBA
4-minute read
Episode #334

How CLUE Report Affects Insurance QuotesIf you’re a regular Money Girl reader or podcast listener, you know that you have a credit report that shows how you handle your credit accounts. But if you’re like most consumers, you’ve probably never heard of your CLUE report.

While it sounds like something used by a private investigator, it actually plays a critical role in how much you have to pay for insurance.

In this episode I’ll take the mystery out of these little-known CLUE reports by telling you what they are, why insurers use them, and how to keep yours clean, so you pay less for insurance.

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What Is a CLUE Report?

CLUE is short for Comprehensive Loss Underwriting Exchange, which is the most commonly used database of insurance claims in the industry. There’s one report for home insurance claims and another for your auto claims, filed in the past 7 years.

The reports also include general information about you, such as you name, gender, birth date, and address.

How Are CLUE Reports Used?

Insurance companies that contribute information to the CLUE database are allowed to use it to investigate your claims history and factor in the information to set your rate.

For instance, let’s say you apply for auto insurance with a new company. If they see that you made several claims over the past few years with your previous company, they may view you as a high risk for filing more claims in the future and charge you a higher premium.

How much more do you have to pay? Each insurer weighs information on your CLUE report differently. However, a study by insuranceQuotes.com shows that filing even one home insurance claim can raise your rate 21%, depending on where you live. Click here to see the average rate increases in your state.

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.