Auto Insurance Claims Sharing: What Drivers Need To Know

Auto insurance companies do share information about claims and policies. They use specialty consumer reporting agencies to collect data on insurance claims, driving records, and other factors to determine the types of policies offered and the premiums paid. This information is shared through databases like the Comprehensive Loss Underwriting Exchange (CLUE) and the Automated Property Loss Underwriting System (A-PLUS). While auto insurance companies don't directly share information, they access shared databases and reports to make informed decisions about coverage and premiums.

Auto insurance companies don't share information directly, but they do get it from the same places

Your age is important because younger drivers tend to have less experience behind the wheel and are more likely to be involved in accidents. As drivers get older, insurance rates decrease. The vehicle being insured also affects rates. Newer or more expensive cars, for example, cost more to repair or replace, so insurance rates are higher. Additionally, drivers with a car lease or loan may need to carry more coverage, which raises rates further.

Where you live also influences your rates. Insurance companies charge higher rates in areas with high theft rates or high traffic volume, as there is a greater chance of your vehicle being stolen or you being involved in an accident. Your driving record, claims history, and credit score also play a role in determining your rates. While you provide this information when requesting a quote, auto insurance companies verify it by requesting reports from specialty consumer reporting agencies.

These reports include your motor vehicle report (MVR) and your Comprehensive Loss Underwriting Exchange (CLUE) report. Your MVR details any accidents, tickets, or DUIs on your record, while your CLUE report shows all claims filed, regardless of whether they are accident-related. Both reports are valuable to insurance companies in verifying your driving history and assessing your risk as a driver.

While auto insurance companies don't directly share information with each other, they do have access to shared databases like CLUE, which contains comprehensive information about accident history, claims records, and policy details. This allows them to assess your likelihood of filing a claim and set appropriate premiums.

Specialty consumer reporting agencies collect information about insurance claims, and insurance companies use this to determine rates

Specialty consumer reporting agencies collect information about insurance claims, and this data is used by insurance companies to determine rates and the types of policies they offer. These specialty agencies collect data on insurance claims made on property and casualty insurance policies, such as auto and homeowners insurance policies, and may also collect driving records. The information in these reports is used by insurance companies to determine the types of policies offered and the premiums charged.

These specialty consumer reporting agencies function similarly to the major consumer reporting agencies, such as Experian, Equifax, and TransUnion. Individuals can request free copies of their reports from these specialty agencies annually, although there may be a fee charged by some agencies. It is important to note that not all agencies will have information on every individual, and reports must be requested individually from each agency.

The Fair Credit Reporting Act (FCRA) is designed to protect the privacy of consumer report information and ensure its accuracy. It grants consumers certain rights, including the right to a copy of their information, the ability to dispute inaccurate information, and the right to receive a notice of adverse action if they are denied insurance or offered higher premiums based on the information in the report.

When it comes to auto insurance companies specifically, they do not directly share information with each other. However, they often access the same reports and data sources to gather information about individuals. These reports include driving records, claims history, and credit scores. Insurance companies use this information to assess risk, determine rates, and make informed decisions about coverage.

The Comprehensive Loss Underwriting Exchange (CLUE) is a database used by insurance companies to track claims

The Comprehensive Loss Underwriting Exchange (CLUE) is a database used by auto insurance companies to track claims. CLUE is a claims-information report generated by LexisNexis, a consumer-reporting agency. The report contains up to seven years of personal auto and property claims history. This includes the amount paid out by the insurance company, a description of the covered property, and the property address for homeowner claims or specific vehicle information for auto claims.

Insurance companies use the CLUE report to decide whether to offer coverage and how much to charge for it. Studies have shown a relationship between past claims and future claims. The report is also used to calculate insurance risk scores, which help insurance companies set prices and make underwriting decisions.

When an insurance company starts, denies, or pays out a claim, they submit a CLUE report. LexisNexis advises insurance companies not to report claims information when a customer simply asks a question about coverage or their deductible.

Individuals can request a copy of their CLUE report from LexisNexis. The Fair Credit Reporting Act entitles consumers to one free copy of their report every 12 months. If there are inaccuracies or incomplete information in the report, consumers have the right to dispute the content with LexisNexis and the company that provided the information. LexisNexis must verify the information with the reporting company and notify the consumer of the results within 30 days. Consumers can also add an explanation to an item in the report, which will be shown in all future reports.

The Automated Property Loss Underwriting System (A-PLUS) is another database used by insurers to track claims

Auto insurance companies do not share information directly, but they do have access to the same reports and databases, which helps them make informed decisions about coverage and premiums. One such database is the Automated Property Loss Underwriting System (A-PLUS), a subsidiary of Verisk Analytics, Inc. A-PLUS is a smaller competitor to the more well-known CLUE database, run by LexisNexis.

A-PLUS allows home and auto insurers to exchange information about auto and property loss insurance claims. The database contains personal information, such as your name, date of birth, and Social Security number, as well as a record of any auto or homeowner property loss claims submitted in the past seven years. This includes the type of loss claimed, the insurance company name, and the amount paid by the insurance company. In most states, the reports can also include property damage, even if the insurance company did not pay out.

A-PLUS reports are used by insurers to assess the risk associated with selling an insurance policy to a customer. These reports can impact the premium a customer pays, as well as whether they are insured at all. Therefore, it is important for individuals to review their A-PLUS reports and dispute any inaccurate or incomplete information. Individuals can obtain one free copy of their A-PLUS report every 12 months by contacting Verisk.

Insurance companies can access your driving record, including accidents and tickets

Auto insurance companies can access your driving record, including accidents and tickets. This is done to assess the risk of insuring you and determine your premium. While insurance companies do not directly share information with each other, they do access your data from the same sources.

When applying for a new policy or renewing an existing one, insurance companies will typically request a Motor Vehicle Report (MVR) and a Comprehensive Loss Underwriting Exchange (CLUE) report. The MVR details your driving history, including any accidents, tickets, or Driving Under the Influence (DUI) charges. The CLUE report shows all claims filed, whether accident-related or not.

The information on these reports is valuable to insurance companies as it helps them verify the accuracy of your driving history and assess the likelihood of future claims. Accidents and traffic violations are considered red flags and can lead to higher insurance rates. A single accident can increase auto insurance rates by an average of $80 per month, while a speeding ticket can raise rates by $45 per month.

In addition to the MVR and CLUE reports, insurance companies may also access your credit score and driving records from other states if you have moved. They can also obtain information about your insurance history, previous claims, and policy details through specialised databases, such as Autoplus.

It is important to note that insurance companies do not have access to your full driving record. Certain details, such as your current residential address, are not disclosed on most reports for privacy reasons. Additionally, each state has different laws regarding how long violations and accidents remain on your driving record, typically ranging from three to ten years.

Frequently asked questions