Insurers And Your Auto History: What's The Connection?

When applying for auto insurance, insurance companies will check your driving record to assess how much of a risk you are. They will look at your driving history and your claims history. Your claims history can be found in your CLUE report, which is maintained by LexisNexis. This report contains up to seven years of claims history for auto and home insurance policies. Insurance companies will use this information to determine your insurance rates.

How to obtain your auto insurance history

There are several ways to obtain your auto insurance history. The most common way is to contact your previous insurance company or companies. They can print out a history of your auto insurance coverages and claims, which is often called a letter of experience. This document will contain details such as the names of the insured on the policy, the current status of the policy, the policy's start and end dates, all claims made against the policy, and claim details like the type of claim and the date it was filed.

If you cannot remember which insurance company you have used in the past, you can try to contact your state's Department of Motor Vehicles (DMV). They may have information on your previous insurance policies and can also provide a copy of your motor vehicle record (MVR).

Another way to obtain your auto insurance history is to request a CLUE report, which stands for Comprehensive Loss Underwriting Exchange. This report is maintained by the data analytics company LexisNexis and contains up to seven years of claims history for auto and home insurance policies. You can request a copy of your CLUE report by contacting LexisNexis directly or through their website.

Additionally, you can check your own driving record by requesting a copy from your local Department of Motor Vehicles for a small fee. This will allow you to see what the insurance company sees when they assess your risk. Keep in mind that your driving record will only include information about your driving history within the United States.

How long do car insurance claims affect your price?

When you buy car insurance or get a quote, your insurer will ask about your driving history, including any accidents you've had and claims you've made. This information, along with other factors, is used to calculate the price of your policy.

Technically, car insurance claims remain on your record indefinitely and are added to the Claims and Underwriting Exchange (CUE), a database of all car insurance claims made in the UK. However, this doesn't mean they will impact the cost of your insurance forever. The length of time that a claim will affect your insurance costs depends on the insurance company and can range from three to ten years, with insurers typically asking about the last three to five years.

The impact of a claim on your insurance costs also depends on factors such as the type of accident, whether you were at fault, the severity of the damage, and your state of residence. At-fault accidents will almost always raise your insurance rate, while not-at-fault accidents may still result in an increase, as insurance companies may view you as a higher-risk driver. Comprehensive claims, which include non-collision events like car theft or vandalism, can also lead to higher rates as they indicate a higher risk of filing more claims in the future.

It's important to note that not reporting an accident or claim can have serious consequences. Failing to disclose accidents when applying for insurance could result in your policy being voided or cancelled. Additionally, if anyone involved in the accident takes legal action against you at a later date, not having reported the incident may hinder your insurer's ability to represent you effectively.

How to check your car insurance claim history

There are several ways to check your car insurance claim history. One of the easiest ways is to ask your current or previous insurer for a letter of experience, which shows detailed information about your policy. This letter will include the names of the insured on the policy, the current status of the policy, the policy's start and end dates, all claims made against the policy, claim details, and any fault determination. You can also request a copy of your motor vehicle record (MVR) from your state's Department of Motor Vehicles, which can provide information on your previous insurance policies and clear up any questions about tickets or accidents.

Another way to check your claim history is to order a Comprehensive Loss Underwriting Exchange (CLUE) report, which is maintained by data analytics company LexisNexis. A CLUE report typically contains up to seven years of claims history for auto and home insurance policies, and includes your insurance policy number, all claims information, and details about the covered property. Requesting a copy of your CLUE report won't hurt your credit score, and you're entitled to one free copy every 12 months.

Additionally, you can check your own driving record by requesting a copy from your local Department of Motor Vehicles for a small fee. This report will show any accidents, claims, and tickets, giving insurance companies a full picture of your behaviour on the roads. However, it's important to note that your driving record will not include any driving outside of the United States.

Finally, you can contact the Claims and Underwriting Exchange (CUE), a central database that holds records of every incident reported to insurance companies, even those that don't lead to a claim. Most car, home, and travel insurance providers submit information to CUE, which typically stores details of insurance claims for six years. Under GDPR regulation, you can find out any information that CUE holds on you by submitting a Subject Access Request form on the Motor Insurers' Bureau (MIB) website.

What is a car insurance claim?

A car insurance claim is a way of notifying your insurance provider that you need to use your policy to cover expenses after your car is damaged in a covered incident. The process varies from provider to provider, but how you file a car insurance claim usually begins with a phone call, filling out an online form, or using your insurance company's app.

It's important to file a claim as soon as possible after a car accident. You may even be able to do it while you're still at the site of the accident. You should file a claim whenever something happens that your policy would cover. For example, if you have comprehensive coverage and your car is vandalized or stolen, you would file a claim for the related loss.

The types of coverage you have will determine when you'll file an auto insurance claim. Here are some of the most common coverage types:

• Liability coverage: This provides protection when you cause an accident or damage with your car. Most states require bodily injury liability coverage if you hurt someone else and property damage liability coverage if you damage someone else's property while driving.
• Collision coverage: While liability coverage can pay towards fixing someone else's car if you're at fault, collision coverage pays for repairing or replacing your vehicle regardless of fault.
• Comprehensive coverage: Comprehensive covers damage or loss to your vehicle that is not caused by an accident or damage that occurs when the car is not moving. This includes theft, vandalism, or a fallen tree branch smashing your windshield.

The more coverage you add to your policy, the more you'll likely need to pay. However, you'll also be protected against more risks, which means your car insurance claim might cover losses so you don't have to.

How does a car insurance claim affect my insurance premium?

The impact of a car insurance claim on your insurance premium depends on several factors, including the type of claim, your driving history, and the insurance company's policies. Let's delve into the details and explore how a car insurance claim can affect your insurance premium.

The Type of Claim

The nature of the car insurance claim plays a significant role in determining its impact on your premium. Claims can generally be categorised into two types: collision claims and general claims (or own damage claims). Collision claims refer to incidents where your vehicle collides with another object or vehicle. These types of claims typically have a more considerable effect on your insurance rates, especially if you are deemed at fault for the accident. On the other hand, general claims involve incidents such as theft, vandalism, fire, or broken windows, which do not involve a collision. These types of claims usually do not affect your insurance premiums as long as you are not at fault. However, making frequent general claims may lead to an increase in your deductible or even termination of this specific coverage from your policy.

Driving History

Your driving history is a crucial factor that insurance companies consider when determining insurance rates. If you have a clean driving record, free from accidents or violations, your insurer may be more lenient when it comes to increasing your premium after a claim. Some insurers even offer a first claims forgiveness endorsement, where they waive the impact of your first claim on your premium, especially if you are an overall good driver. Conversely, if you have a history of accidents or traffic violations, your insurance rates are more likely to increase significantly after a claim. Additionally, certain serious traffic violations, such as drunk driving, may result in your insurance company refusing to renew your policy.

Insurance Company Policies

Different insurance companies have varying policies and guidelines for reassessing insurance rates after a claim. The increase in premiums can range from 20% to 40%, and this rate hike can last for two to five years, depending on the provider. Some companies may have specific claim amounts that trigger a rate increase if you are at fault in an accident. It is essential to understand your insurance company's policies and guidelines to anticipate how a claim may affect your premium.

Number of Claims

The number of claims you file can also impact your insurance premium. Filing multiple claims, especially in a short period, can lead to higher rates or even non-renewal of your policy. Insurance companies view drivers who file frequent claims as high-risk, and this perception can result in increased insurance costs.

In conclusion, while a car insurance claim can affect your insurance premium, the impact varies depending on the factors mentioned above. It is always advisable to review your insurance policy, understand the company's policies, and consult with your insurance agent to make informed decisions regarding filing claims and managing your insurance costs.

Frequently asked questions