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Benjamin Zitney Online Auto Insurance, LLC 8667 Haven Ave. #100 Rancho Cucamonga CA, 91730 909-784-2475 |
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A new FAQ discusses what CLUE reports are and why and how insurers use them.
Online PR News – 17-June-2011 –In a new FAQ, the writers at OnlineAutoInsurance.com give an overview of a tool that many insurers use to help assess drivers’ risk levels but that many of those drivers may be unaware of: CLUE reports.
CLUE stands for Comprehensive Loss Underwriting Exchange, and the database that the reports are based on is made up of individuals’ loss data that are submitted by participating insurance companies. The data are also accessible to other companies that participate.
While most insurers can find out about a prospective policyholder’s accident history by reviewing his or her driving record, the extent to which an accident affects insurance rates can be dependent on the information aggregated in the CLUE database. That’s because the database does not only show that a crash took place but also when it happened, what type of crash it was and how much the driver’s insurer at the time paid to cover the claim.
Most insurers use CLUE reports only for new applicants, since renewing customers already will have established a loss-history record with the company.
Loss data, though, does not stay in the database forever. According to the Utah Insurance Department, “The database contains up to five years of personal property claims history.”
Source: http://www.insurance.utah.gov/auto/clue.html
Different states have varying levels of regulation on who can access CLUE reports and on how the information they contain can be used.
North Dakota, for instance, bars car insurance providers from charging additional premiums based on past losses filed under the comprehensive portion of a policy.
To learn more about this and other coverage issues, readers can go to http://www.onlineautoinsurance.com/learn/how-accidents-affect.htm where readers will find a number of informative resource pages and a quote-comparison generator that can help consumers find the best rates for a policy.
To access the full FAQ, readers should follow the “Questions” link located at the top of any page on the site.
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