How Your Claims History Affects Your Auto Insurance Costs

Why does your auto insurance provider need your claims history?How Your Claims History Affects Your Auto Insurance Costs

When you go to secure auto insurance, your premiums are dependent on a series of factors.  One of the most influential factors is your driving and claims history.  But why exactly does your insurer place so much emphasis on your claims history?  Here’s what you need to know.

More Claims Mean Higher Costs

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.

How Do Insurers Know About Previous Claims?

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 insurance companies submit monthly loss history reports to the CLUE database.  These reports include your personal information, your claims history for the month, and inquiries.  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.

Comprehensive Claims

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.

This is how your claims history affects your auto insurance rates.  Do you have more questions about your auto insurance coverage and costs?  If so, then contact the experts at ISU-Wissink Insurance.  We are ready to assist you with all your car coverage needs today.