Study Finds 86% of Americans Clueless About the C.L.U.E. Database
—What is it? A Secret Report That Raises Your Home & Auto Insurance—
AUSTIN, TEXAS (November 14, 2016)—Consumers beware! According to a new survey by insuranceQuotes, 86% (up from 83% in 2014) of Americans are unaware that insurers use the claims history of previous homeowners to set premiums for new policies. This lack of knowledge could cause undue financial strain on consumers.
Maintained by LexisNexis Risk Solutions, C.L.U.E. (or Comprehensive Loss Underwriting Exchange) is used by most insurers to report and check the claims history of both homes and drivers.
“Consumers of all ages, from Millennials to seniors, are almost entirely unaware of how the C.L.U.E. database affects their insurance rates. In most states, an inquiry about property damage can be added to your C.L.U.E. report and used against you, even if you never file a claim,” said Laura Adams, senior insurance analyst at insuranceQuotes.
According to the insuranceQuotes.com survey, only 5% of respondents said they were even “somewhat familiar” with the C.L.U.E. database, and only 12% said they asked for a C.L.U.E. report before buying their current home.
“The C.L.U.E. report, which maintains data up to seven years, is a valuable tool for home buyers because it reveals prior claims and potential risks. It also helps home sellers provide full disclosure about their property’s condition,” added Adams.
The insuranceQuotes report notes that only the owner of a property can request a C.L.U.E. report. So home buyers need to ask the seller to obtain a copy. Consumers can access their auto and home C.L.U.E. reports for free once every 12 months.
The full report, along with additional tips and insights on how to save on insurance, is available at /home/CLUE-report-homeowners-insurance-111416.
The survey was conducted by Princeton Survey Research Associates International (PSRAI). The September 2016 Omnibus conducted telephone interviews with a nationally representative sample of 1,000 adults living in the continental United States by landline (500) and cell phone (500, including 316 without a landline phone). Interviews were done in English and Spanish by Princeton Data Source from September 15-18, 2016. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is ± 3.8 percentage points.