Important tips you should know
C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. It typically contains up to five years of personal auto or personal property claims history.
You can order a C.L.U.E. report on your property from:ChoicePoint Consumer Disclosure
P.O. Box 105108
Atlanta, Georgia 30348-5108
Or call toll free 1 (866) 527-2600
An Credit Based Insurance Score (CBIS) is derived from information on your credit report. It is a number that measures likelihood of having an insurance claim—not a measure of credit worthiness. Insurers use CBIS along with a number of other factors, including driving records, claims history, and the type of home or vehicle owned, to evaluate new and renewal auto and homeowner insurance policies.
Equifax, Experian and TransUnion are the credit bureaus that provide credit information. With the use of credit information and a statistical model, these bureaus are able to develop an insurance score, which is provided to the requesting insurance company.
Some of the key elements that are used to develop a credit based insurance score include:
- Number and type of credit accounts (i.e. installment, revolving)
- Past payment performance – number of late payments and duration of late payments (i.e. 30 days late, 60 days late, etc.)
- Stability – length of credit history
- Adverse public records (i.e. civil judgements, tax liens, bankruptcies)
- Type of credit – number of new accounts (credit cards, finance company installments, etc.)
- Balances (i.e. credit cards with balances exceeding 50% of limit)
- Recent inquiries as a result of applying for new credit
Note: Generally, habitual signs of credit management problems adversely affect insurance scores more than an occasional late payment. It is important to remember that a credit based insurance score is a combination of dozens of factors and not limited to just those listed above.