CUE and car insurance
CUE and car insurance
The Claims and Underwriting Exchange (CUE) plays an important role in the fight against car insurance fraud.
If you own a car, chances are there’ll be information on the CUE database that can have a direct impact on the cost of your car insurance.
What is CUE and why does it exist?
CUE is a central database that holds around 34 million records relating to car, home, travel and personal injury insurance claims. The information held includes all reported incidents, regardless of whether or not you actually make a claim.
Established in 1994, CUE was set up to help fight insurance fraud. According to the Association of British Insurers (ABI), one insurance fraud is detected every minute – that’s around half a million scams a year.
Insurance fraud adds an extra £50 to the cost of every policyholder’s annual premium. By allowing insurance providers to easily access information about incidents and claims, it makes it harder to commit fraud or ‘misrepresent’ a claims history.
How does CUE affect my car insurance?
Insurance providers use CUE to confirm that the information you’ve given them about your claims history is honest and correct. Details relating to home and motor insurance claims are held on the database for six years.
This information, along with other factors such as your age, where you live and what car you drive, allows insurance providers to calculate an accurate price for your car insurance premium.
The good news for honest motorists is that information held on the CUE database helps reduce fraud, and this ultimately helps keep the cost of car insurance down.
But it’s not just about saving money. Storing information in a central system makes life easier for both you and your insurance provider. You don’t have to worry about forgetting a past incident and your insurance provider doesn’t need to ask as many questions when you take out a policy.
What if I don’t report an incident?
CUE only holds information about incidents you’ve declared, so it could be tempting to keep quiet and not report an incident, especially if it was minor.
It might not seem like a big deal, but by deliberately withholding information about an incident you’ll be committing ‘non-disclosure’, which is a form of insurance fraud. This could invalidate your policy and may also mean you’ll have to pay more for your car insurance in the future.
Under the new data protection Act (General Data Protection Regulation or GDPR), you can find out what information CUE holds about you by completing a Subject Access Request form on the Motor Insurers Bureau website.
How can I save on my car insurance?
There are various ways to try to reduce your car insurance premiums, including:
- increasing your voluntary excess
- adding a more experienced named driver to your policy
- building up a good no-claims discount
Another way to find a cheaper car insurance deal is to shop around and compare quotes. With our policy comparison tool it only takes a few minutes to find a list of quotes at a price that suits you.
You may even find you can save money on your next premium. Compare the Market data shows that 50% of customers could save up to £289** on their premium by comparing through us.
**Based on Online independent research by Consumer Intelligence during May 2020 50% of customers could save up to £289.85 on their car insurance premium.