Tom Larsen

Be a Smart Insurance Consumer



Posted: Friday, August 18, 2006

by
Larsen & Associates Insurance Agency Inc

Both your claims history and your credit record can influence your insurance rates, and may even make getting insurance difficult. So, I thought I'd give you some information on where to get your reports.

Get a copy of your credit record at any of the three major credit bureaus ... Equifax, Experian and Trans Union.

I read on the Federal Trade Commission website that by law these organizations cannot charge more than $9 for your credit report. On their websites, though, they're offering all kinds of enhanced reports for $20, $30 or more. Just remember they MUST offer you a basic credit report for $9. Look around to find the $9 report.

It's a good idea to check your credit report once a year and make sure it's accurate. You may also catch an Identity Thief before they do too much damage to your credit by checking regularly.

Equifax - www.equifax.com or 800-685-1111 Experian - www.experian.com or 888-397-3742 Trans Union - www.transunion.com or 800-888-4213 Your claims history is similarly found in the C.L.U.E. system. C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. Insurance companies have used this system for years to share information about policyholder claims.

They use this information to qualify and rate potential customers, because some people may be less than truthful when asked about their claims history. Just like your credit report, it's possible that information has been incorrectly applied to you. So, you may be unfairly judged when applying for insurance.

In my opinion, you don't need to invest in a C.L.U.E. report on a regular basis like your credit report. But there are some circumstances where it makes sense.

First, if you are being declined for insurance due to claims, and you don't think you should be. This is true for both auto and home insurance.

Second, if you're buying or selling real estate.

Insurance companies look at both the claims history of the applicant and the claims history on the property being bought. Insurance on a property with a history of claims could be very expensive and make selling more difficult.

So, if you're selling your property you may want to obtain your C.L.U.E. report to show potential buyers that they won't have trouble getting insurance on your place (provided your record is clean). It could make your home more attractive for offers.

And if you're buying, you may want to ask for a C.L.U.E. report so you know what you're getting into. A seller might be able to say there are no problems with his home now, but that doesn't mean there wasn't damage sometime in the recent past that you might want to know about.

Plus, if there's a history of claims on the property you may have trouble getting insurance on it, or it will be very expensive. It won't be long until real estate offers are contingent upon home insurance being available at standard rates. You may have seen it already.

If you want to get a copy of your C.L.U.E. report, visit www.choicetrust.com and go to Home Insurance R eports or Auto Insurance R eports.

Tom Larsen is President of Larsen & Associates, an independent insurance agency and can be reached at www.anarmoragent.com
Tom is an insurance expert in NY, who is dedicated to helping others. He believes that educating clients is the best way to understanding the complex insurance issues. He is an author, speaker and marketing expert and can be found at www.nypropertyinsurance.com

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