Get a C.L.U.E. if you know what’s good for you.

You may be wondering: What’s the clue, then?

C.L.U.E. is also known as a Loss History Report and reports an insured’s history of claims and losses on their home or auto within seven years from the date of the request. Each month, participating homeowners and auto insurance companies report claims history information, which goes into a central database called the Comprehensive Loss Underwriting Exchange (C.L.U.E.). How is knowing this good for you? One: you can order your own report to verify its accuracy and keep track of your records. Two: the report is used by insurers to help prevent fraud when applicants fudge their record and mess with the fluctuation of premiums.

Under the Fair and Accurate Credit Transaction Act (known as FACT or FACTA), you are entitled to receive one free C.L.U.E. Auto and C.L.U.E. Personal Property report every 12 months. More than one will cost $19.95.

C.L.U.E. Reports are linked to the individual, not the property or car, so it only includes the history of personal property or auto insurance losses of a single owner, and only information concerning the insurance policy.

What’s in the report?

• The name of the insurance company
• The date of any losses and claims
• The type of loss—fire, wind damage, etc.
• Whether or not the claim was denied
• If not denied, the amount that the insurer paid out
• The homeowner’s insurance policy number and claim number

What’s not in the report?

• Legal judgments
• Criminal records
• Civil lawsuits
• Credit reports
• Information from any state department (i.e. DMV) or a similar organization
• Sensitive or private information, such as a Social Security number or credit card information

If you find any inaccuracies on your home’s C.L.U.E. report, you can contact LexisNexis to resolve the dispute at 888-497-0011, by email at consumer.documents@LexisNexis.com, or by postal mail at LexisNexis Consumer Center, ATTN: FACT Act Dispute Request, P.O. Box 105108, Atlanta, GA, 30348.

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We get it. You’ve made mistakes–we all have–but do not compound your troubles by lying on your insurance application. I remember, as a new mom, answering questions on the life insurance form and my husband being so frustrated with me because I took each question seriously. Signing a legal document strikes a fear in me not unlike swearing on the Bible to tell the whole truth and nothing but the truth. It baffles me that people can outright lie, though I also haven’t been in a situation where my life or a great deal of money depended on it, so judge not and all… but, in the matter of insurance, other people’s lives and a great deal of money do depend on telling the truth. Withholding information or intentionally making misrepresentations is fraud.

“Taking creative liberties on your insurance application may seem like an innocent white lie, but it’s actually considered fraud, and the repercussions can be serious. If found out you may be charged a higher premium, denied a policy or even charged with fraud, requiring you to pay a fine or even do jail time.”

Finder’s consumer advocate Rachel Dix- Kessler.

The nice folks at insurancehotline.com listed six possible consequences of being dishonest with your insurance company:

1. Your insurance policy could be cancelled

If your policy is cancelled, you’ll likely have to pay more to get a new policy elsewhere. Policy cancellation for non-disclosure puts you in a high-risk category. Being in a high-risk insurance category automatically makes it harder for you to get new insurance. 

2. Your claim will be denied

Let’s say you tell your insurance company that you don’t drive your car to work every day, but you really have a 50-kilometre commute each way. If you’re in an accident while on the commute, the company may deny your claim because you didn’t tell them the truth about your daily driving.

3. Your insurance premiums will go up

Insurance companies provide policies and charge premiums based on the information you, ideally, truthfully provide. If you drive a lot or have had accidents in the past, this increases your risk for a future accident. If you didn’t disclose problems in the past and the company learns of them, your premiums will go up, because the company will have a more accurate picture of your potential risk.

4. You could be denied car insurance in the future

When you’re dishonest with your car insurance company and they discover it, whether it’s because of a claim you make or other means, it’s more serious than if you told the company from the beginning that you’d had an accident or tickets. 

The insurer is within its rights to deny your car insurance in the future.

5. You could face fines and penalties

You may have to pay money to your insurance company or receive a fine under your province’s insurance regulations. The amounts vary, but if a claim was paid under fraudulent circumstances, you could be held financially responsible for it. An insurance company can sue you to recover costs and damages under Canadian law.

6. You could face criminal penalties

A false insurance claim can lead to jail, substantial fines, and a permanent criminal record.