Yes, insurance companies report nearly all claims—including paid claims, denied claims, and opened investigations—to centralized databases like the Comprehensive Loss Underwriting Exchange (CLUE) or A-PLUS. These reports, which contain up to seven years of history, are used by insurers to determine eligibility and set premiums.
An insurer may request a CLUE report when you apply for coverage or request a quote. The company uses your claims history, or the history of claims at a specific property, to decide if it'll offer you coverage and how much you'll pay.
Do auto and homeowners insurance companies share my information about claims? Yes. There are specialty consumer reporting agencies that collect and report information about the insurance claims you have made on your property and casualty insurance policies, such as your homeowners and auto policies.
Fraudulent claims raise the price of insurance for everyone, so it's in a company's best interest to verify that every claim is legitimate and accurate. Car accidents, personal injury, workplace injury and property damage are all common insurance claims that require an investigation.
The more insurance claims you file, the more expensive your premium will likely be. Some insurance companies may cancel your policy if you file too many claims. If you're concerned that filing a claim could lead to your policy being canceled, you may want to speak with your insurance agent.
After a claim, insurance rates can rise anywhere from 0% to over 50%, depending heavily on fault (at-fault claims cause bigger hikes), the claim's severity (injuries, major damage cost more), your driving record, the type of claim (comprehensive vs. at-fault), your insurer, and location. At-fault accidents often lead to 20-50%+ increases for several years, while not-at-fault or comprehensive claims (like hail, theft) usually result in smaller, if any, increases.
The Hidden Cost of Filing Claims: Premium Increases
These increases vary by state and insurer, but the pattern is clear: claims lead to higher premiums, often for years. That $800 fender repair could end up costing you $2,100 in premium increases over three years—more than 2.5 times the original repair cost!
How do insurance companies talk to each other? Insurance companies use systems like the Comprehensive Loss Underwriting Exchange (CLUE) to share information on claims, affecting risk assessment and premiums.
Policy Denial
If an insurance company discovers that you've lied on your application, they may deny your coverage altogether. This means that in the event of an accident or claim, you would be left without insurance and responsible for any damages out of pocket. This could have devastating financial implications.
Insurance companies must report all claims they receive. Most insurance companies and their attorneys have the ability to see the database of records from past injury claims. Although you may think hiding a past injury will help your current case, it is advisable to be forthright with your past claims.
The 90-day rule in health insurance, established by the Affordable Care Act (ACA), sets a maximum 90-day waiting period before an otherwise eligible employee's group health coverage must begin. This rule prevents long "probationary periods" for benefits and ensures fairness, applying to both fully insured and self-funded plans, though employers can offer coverage sooner or not at all, as long as the wait doesn't exceed this federal limit.
Claims are shared into a contributory database, so you will be checked against that. If you're found to be not disclosing your claim, then your premium will increase to account for your claim and your nondisclosure.
Dave Ramsey says homeowners insurance is crucial to rebuild your home and replace belongings, emphasizing guaranteed or extended replacement cost coverage to rebuild fully, even if costs exceed policy limits, alongside a high deductible to lower premiums; he stresses getting enough coverage to rebuild your house and stuff, not just its market value, and recommends using an independent agent for the best options.
Insurance companies have the obligation to conduct a full, fair and thorough investigation of a claim.
Insurance companies determine fault by having adjusters investigate, gathering evidence like police reports, witness statements, photos, and videos, analyzing vehicle damage and skid marks, and applying state traffic laws and negligence principles, often resulting in shared fault (comparative negligence) if multiple parties contributed.
What does a home insurance inspector look for? In addition to the critical areas — electrical, plumbing, roof and structure, and HVAC — the inspector may also search for any potential red flags that might increase your chances of filing a claim. This also applies to inspectors who perform full buyer inspections.
If the claim amount equals or is less than the deductible, there's not much sense in filing a claim. “Most car insurance policies have a deductible in place which you have to pay before their coverage kicks in,” says Ross. “If your damages are minor, you're much better off just paying out of pocket.”
Common Mistakes When Talking to Insurance Companies