Overhaulin'

How would a car insurance company know if i had a claim on previous insurance policy?

As above, i claimed on my existing car insurance policy about 2 years a go now. When getting new quotes they ask if i've had any claims in the past 3 years (which i have). But just wondering how would my new insurance company know either way if i put 'no claims'. Surely if they were all on one database they wouldnt be asking me in the first place?! Would they check for any reason? And what would happen if i was found out? Thanks.

Public Comments

1. They share such information with one another. If you try lying about it they will also know that information, i.e. that you are a dishonest person.
2. They will know for sure. Why wouldn't they ask you, it's a standard question insurance companies have. They don't have to have a reason to check, they just automatically check every application. All insurance companies are linked to the department of motor vehicles and they can check anything they like.They can go back years and years.
3. Yes, they will find out and drop you (or deny any new claim) because you falsified your application. Be honest.
4. Every insurance company reports claims to a database called CLUE. Whenever applying for insurance with a new company, they will run a CLUE report. If you lie when they are quoting you, then want the policy and they find out you actually did have a claim, the quote you got will be inaccurate. They ask you so that they can give you an accurate quote to begin with. However, it costs the insurance company money to run those reports, so they will only do so if you agree to the policy.
5. There is a central database, called the Comprehensive Loss Underwriting Exchange. All claims are reported to them, and when you take out a new policy, your insurance company asks for a report FROM them, about claims. MOST people shopping for insurance, will get quotes from 3, 5, 10 different companies. CLUE charges $15 for each report. It doesn't make sense financially, to check the information you gave, until you've committed to buying a policy. What happens, when you go to buy the policy, give your down payment, is they check THEN, and when they find out you lied, they "uprate" you. That quote is only as accurate as the information you give them.
6. They ask because it costs them money to run what we call CLUE or claims reports. When a customer is still just in the quoting faze of doing business with a company it saves them millions of dollars not running that report yet. However, once a commitment is made the company wants to ensure they are receiving the correct amount of premium so they run that report. There is almost no chance that if the quote was files in your name on your insurance they won’t find out. Good luck.
7. because this information is stored on a database that all insurance companies have access to.
8. Insurance companies share claims information through the CLUE database.
9. There is a database, and they do check, but not until after you buy the policy. If you lie, then they cancel it.
10. If you tell the truth in the beginning they can quote the correct price and dont have to run a check on your history to give you an accurate quote.
11. i think you shud take help from a legal advisor who has expertise on insurance.