What is a CLUE report?

According to WalletHub, a CLUE report is an important but often overlooked document that can influence how much you pay for home and auto insurance. Maintained by LexisNexis, the report contains up to seven years of insurance claims history, including claims that were paid, denied, or even inquiries that could lead to future claims. Insurers use this information to evaluate risk when pricing policies or deciding whether to offer coverage. Because errors on a CLUE report can result in higher premiums, the article encourages consumers to review their report regularly and dispute any inaccurate information. Under federal law, you are entitled to receive a free copy of your personal CLUE report each year. Understanding what appears on the report can help you avoid surprises when shopping for insurance, identify mistakes before they become costly, and better manage your long-term insurance costs. The article emphasizes that monitoring your CLUE report should be as routine as checking your credit report.