The core of insurance is the taking on of risk. You are transferring the risk of a financial loss to your insurance company. What do we mean when we say “risk” or “loss”? Running a red light is a risk that can result in a loss, such as hitting another vehicle or a person. That other party has the loss of their property and potentially health or life.
If you cause a loss by accident, your insurance company is what will compensate, up to the limits of your policy, the financial effects of that loss. That is the risk of insurance: compensating losses.
Your CLUE report is the basis on how auto and home insurance is calculated. It tells insurance companies about the traffic violations you’ve had and the losses at your address. If something is wrong on it, you’ll see an increase in your premiums or, even worse, may not be able to get insurance.
There is a way to go about correcting it, although it may take some time. Should you get an incorrect report back, you can dispute it by submitting a statement to LexisNexis, the company that owns CLUE to:
P.O. Box 105292
Atlanta Ga. 30348.
When writing to them, you’ll need to include
- The CLUE reference number, near the top of the page
- The insurance company associated with the claim
- The date of the incident or loss
- A description of why it’s incorrect.
LexisNexis says that they can take up to 30 days to investigate your statement, but the insurance company is allowed to take longer to respond, sometimes up to a few months.
Should your claim be supported by LexisNexis, they will modify your CLUE report. Remember, even a modest decrease of 5% can take an $800 down to $760. Imagine if you’re paying premiums in the thousands!
What if it’s correct, but the problem was fixed?
There is no one-size-fits-all solution. We know this firsthand, it’s the reason we went independent!
If you have a loss on your house because your neighbor’s tree fell on your roof, but the tree has since been cut down and no others are up, you can submit an explanation as such. Insurers will take a look at that and, usually, rerate accordingly.
Even more, if the investigation was not found in your favor, you can often still submit your side of the story and dispute what has been said on your report.
What else to look for
What we see most often in CLUE reports that shouldn’t be there are “claims” from over zealous claims representatives that were never actually filed.
There are a few other things to look out for:
- Incorrect social security numbers.
- Incorrect policy numbers – check them against your old declarations pages or bill.
- Dates of the claim – the maximum amount of time they hold onto your record is 7 years. Make sure their dates are accurate.
- Amount of claim – if you talked about filing a $500 claim and never did, but it showed up and being there, you may have a valid claim.
Finally, if you haven’t owned your home for more than 7 years, you may want to get a copy of the Home Seller’s Disclosure Report by LexisNexis and contact the previous owners to make sure everything was filed correctly. You can even compare it with the “Claims History for Risk” section on your CLUE report just to check for accuracy. The Home Seller’s Report only goes back five years in a property’s history and doesn’t divulge the seller’s personal information, but it gives a great check against what you’re seeing.
If you come in for a consultation and we find something on your CLUE report that you tell us shouldn’t be there, we’re more than happy to help you file and try to get it taken care of.