You probably already know that there are multiple databases that maintain information on you and your behaviors. Employers use them to make hiring decisions; landlords use them to approve tenants, and car insurance companies use them to assess the risk of insuring a new customer.
Under federal law, you have the right to view reports on your consumer behavior. Continue reading to find out what information car insurance agencies are looking at and how you can ensure their accuracy.
The CLUE Report
This is the least known report of the “Big Three,” but it is used by virtually every insurance company in the U.S. when evaluating a driver’s insurability. The CLUE report comes from the comprehensive loss underwriting exchange database maintained by LexisNexis®. Insurance companies report claims activity to CLUE, making it impossible to prevent a new insurer from finding out about past accidents and claims. The typical CLUE report includes:
- The number of claims you have filed in the past 7 years
- How much each claim cost your insurer
- The type of claim (i.e. rental car reimbursement, liability, collision)
- Opened claims that were never resolved
- Claims that were denied payment by the insurer
As a consumer, you have the right to review your CLUE report and also add a personal statement to it. If you find any inaccuracies in it, LexisNexis® can open an investigation into the errors and work with the insurance company to resolve it. You can request a CLUE report from LexisNexis® online or by calling (866) 312-8076.
Credit Report
Here in the Badger State, information in your credit report is free game for insurance companies to review. Insurers create a soft pull on your credit report from one or more of the three major credit bureaus (Experian, Equifax, and TransUnion). In it, they look for information about your financial behaviors, including:
- Whether you pay your bills on time
- If you have any outstanding collections
- How much you debt you have
- What type of debt you have
- Whether you have had any bankruptcies
Information is often similar but can vary across each of the three credit reports. It is important to review your credit report at least once per year to ensure the information inside of it is accurate. Under federal law, you are entitled to one copy of your credit report from each of the three major bureaus once every 12 months. You can request your free credit report online at https://www.consumer.ftc.gov/articles/0155-free-credit-reports.
Your Wisconsin Driving Record
Though your driving record is not technically a consumer report, it does contain data that is very valuable to insurers. Driving reports provide information about your history behind the wheel, including any moving violations you may have received. Most violations stay on your report about five years, though alcohol related violations can stay on your report for decades. You can request a copy of your driver record for $7 online from the Wisconsin Department of Transportation.
