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The Credit Report That Affects Insurance Rates

The Fair Credit Reporting Act provides that potential insurers have a permissible purpose for accessing your credit report when they are determining whether to provide insurance coverage.   Though when we look at our Trans Union, Equifax or Experian credit reports, we rarely, if ever see insurance companies performing inquiries on the credit reports.   Is that because insurance companies rarely perform credit inquiries?  Not at all. 

As we have blogged in the past, the 3 main credit reporting agencies mentioned above are not the only ones.  There are different types of consumer reporting agencies that fall within the definition under the Fair Credit Reporting Act.  There are consumer reporting agencies for background checks and criminal background reports.  There are also reporting agencies for insurance companies.  These reporters provide information about how many claims one has made in the past or for how much, and allows the insurers to determine how much to charge as a premium. 

These little known companies are C.L.U.E.  (owned by LexisNexis) and A-PLUS (by Verisk Analytics).   Very few people know about these reports and would have no reason to unless they were denied insurance or quoted an exceptionally high premium.   Just as any other consumer reporting agency, these insurance reporters have the same responsibilities toward consumers as the others.  That is, you are entitled to one free report in every 12 month period and they must provide it to you.  In addition, if you find errors in the report, you can issue a dispute to the agency and they must conduct an investigation and report back the results within 30 days.   Consumers  who are harmed by the failure of these companies to perform a reasonable investigation or report with maximum possible accuracy can bring claims against these companies under the Fair Credit Reporting Act.

 For information on how to dispute your credit report visit our website or contact us for a free case review.

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