If you are like many people in the country, you are unaware that car insurance companies use a report called a CLUE report to assess a customer when they are deciding on rates and claims for an individual. What Is a CLUE Report? The CLUE report is generated by a database called the Comprehensive Loss Underwriting Exchange. This database keeps a history of all the claims filed by a particular individual. The database keeps all the information provided by member insurance companies, including information about the date of any losses, the type of losses, the amounts paid by a company and the type and value of the property insured. The database includes information about homeowners and automobile insurance. For automobiles, there is specific information about the vehicles that were insured and any claims on those.

Relationship between Credit Score and Claim History. Car insurance terms are more likely to be favorable if a customers credit history is spotless. From the insurers perspective, if the insured has never missed a payment, is always on time and has never defaulted or declared bankruptcy, they probably are not the type of person who gets into a lot of accidents and makes a lot of claims. It may sound like a stretch, but insurance companies spend a lot of money researching just these kinds of correlations to help them assess risk.

How Does My Insurer Use a CLUE Report? CLUE reports are used almost exclusively by agents who are considering new clients. They are used during the underwriting process to determine the risk of a particular client. Most companies do not used them for renewals because they have their own history on a client. This makes the underwriting process easier for insurers, who can avoid searching public records and requesting information from previous insurers. Who Can Get My Report? Any insurance company that participates with CLUE can get a copy of the report, but you as a consumer can also request and receive a copy of your own CLUE report.

Auto insurance companies look at many factors when they determine who to insure. Credit scores are merely one of many variables, but they help them assess any risk that the insured may pose. Similar to how credit scores are derived, the precise equation involving credit score and insurability is not entirely known to the general public. Suffice to say that the better ones credit is, the more favorable the premium.

Once a consumer purchases an auto insurance policy from an insurance agent, their job does not stop there. An auto insurance agents role now shifts. Part of being an insurance agent is to ensure compliance when it comes to premium payments. These agents send out reminders to consumers about payment schedule as well as any proposed changes on rates to the current auto insurance policy of the consumer. A good auto insurance agent should also be updated on their consumers life since they can get new leads form these changes like when a family member bought a new car. In this case, they are able to offer cheap car insurance quotes for this new family member. Dirt Cheap car insurance for just $39 per month at Car Insurance Miami

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