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Why Auto Insurance Providers Care About Your Past Claims
Why Auto Insurance Providers Care About Your Past Claims, how your claims history affects your auto insurance rates

How your claims history affects your auto insurance rates.

Before an auto insurer will issue you a policy and set your premiums, they will take various factors into account.  One of the things they will look at is your claims history.  But what do car insurance providers look for when they go through your past claims and how does this help them determine your premiums?  Read on to learn how your claims history affects your auto insurance rates.

  • Past Claims and Today’s Rates

Auto insurers use your claims history to determine if you are a high or low-risk driver.  If you have a track record of making a lot of claims, then insurers will consider you riskier to insure.  As always, the higher-risk you are, the higher your insurance rates will be.  On a positive note, if you are a safe driver, then your auto insurance rates will be on the lower side.

  • Not All Claims Will Raise Your Rates

It’s important to note that comprehensive damage claims will not affect your auto insurance premiums.  Because comprehensive claims are a result of things outside of your control, such as fire, storm damage, theft, and so on, insurers will not hold these claims against you.  It is only the claims for actual at-fault auto accidents that will affect your rates.

  • How Insurance Companies Access Your Claims History

Auto insurers will track claims from different carries with a CLUE (“Comprehensive Loss Underwriting Exchange”) report.  CLUE is a database that all insurers use to track and review your claims history.  All insurers file monthly reports to the database regarding their clients’ claims status.  These reports remain in the system for 7 years before they are deleted.  Before offering you coverage, all auto insurers will check your CLUE report to determine how high-risk you are.

This is how your claims history affects your auto insurance rates.  Do you have further questions regarding your car coverage?  If so, then contact the experts at Mike Leonard Insurance Agency for assistance.  Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.