What is a claims history and how does it affect my rates?
By Bob Millaway, South Jersey Community Expert & REALTOR®
Your claims history is a record of insurance claims you have filed, tracked through a database called the Comprehensive Loss Underwriting Exchange (CLUE). Insurers use this history to assess your risk. Filing one or two claims may cause a modest rate increase. Three or more claims within a few years can lead to significantly higher premiums or even non-renewal. Some insurers offer claims-free discounts. Consider paying for smaller losses out of pocket to avoid impacting your claims history.
Why It Matters
Your claims history follows you for five to seven years. Filing small claims can cost you far more in higher premiums than paying out of pocket.
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