both auto and home owners insurance rates have increased in recent years. Average Homeowners Insurance Policy Costs $231 per monthand the common man pays almost $600 a year for minimum auto coverage (and more than $2,000 per year for full coverage). But just because insurance has become expensive enough for everyone doesn’t mean you should accept the premiums you pay. If insurance costs are draining your bank account, you should make sure your rates are calculated correctly. You can start by requesting a copy of your report. Comprehensive Loss Underwriting Exchange (CLUE).

What is a CLUE report?

A The CLUE report it is basically a record of all insurance claims made on a property or auto over the past seven years, plus a “risk score”. The CLUE Report is a product of LexisNexis and is used by almost all insurers to determine rates to insure your home or car. The report will contain the date of any claim, the insurance companies involved, the policyholder’s personal information, the type of loss and the outcome of the claim (as well as any amount paid).

Insurers can use this information to decide how risky that property will be to insure. If your (and/or previous owners) have made multiple water damage claims for your home, eg your insurer they might decide the risk is too great and raise rates. If your car has been stolen and damaged several times, your insurer they might charge more for full coverage because it’s more likely to happen again.

CLUE reports don’t always increase premiums. If there is a claim for a replaced roof on your home, for example, your insurer might conclude that you are Less likely to file a claim in the near future and below your rates as a result. But if your rates insurance premiums are higher than expected or have risen sharply recently, your report CLUE could be the key – because like credit reports, CLUE reports can be inaccurate.

How to get a CLUE report

You have the right to a copy of your reports. CLUE — they are covered by the same law that gives you access to your reports. of credit and checking account reportsFair Credit Reporting Act of 1970. You can request a free copy of the CLUE report for each property each year. Once you receive the report, you should review it carefully to ensure that all information is correct. While you may not be able to verify claims made by previous owners, you can at least make sure that everything listed since you took ownership is correct. If it isn’t, you can ask LexisNexis to correct the report. You can also add notes to your reports. CLUEs that provide context or additional information to insurers. Both actions could result in lower rates, especially if you’ve removed erroneous claims from your report.

CLUE reports are also useful when you are looking for a new car or home. You can’t get an INDIC for things you don’t already own, but you can ask the current owner to provide a copy. You can use the report the same way your insurance company does, assessing your risk. If the home you’re considering has had several requests for mold remediation in the past seven years, for example, you might decide the risk is too great and walk away.

Of course, you can’t avoid risk entirely or get free insurance. But reviewing CLUE reports can ensure you’re paying the right rate for your insurance and protect you from buying the wrong car or home.