The Claims and Underwriting Exchange (CUE) might not be familiar to most, but it's an essential tool for insurers. CUE provides millions of records relating to different types of insurance.
The database itself plays a significant role in the crackdown of insurance fraud. The sharing of information helps reduce car insurance fraud and lower the cost of insurance premiums.
What is the CUE database?
CUE is a central database containing millions of records relating to car, home, personal injury and insurance incidents and claims. Introduced in 1994, CUE holds data over the past 6 years. It keeps track of incidents big and small in a bid to crack down on insurance fraud.
This information is shared with insurers so they're aware and informed of potential fraudsters - reducing the risk of repeat offenders.
Why is the CUE insurance database needed?
One of the main purposes of CUE is to tackle insurance fraud. For reference, the Association of British Insurers (ABI) published figures showing there were £1.1 billion worth of fraudulent claims in 2023, up 4% on 2022.
Information sharing serves multiple purposes beyond managing insurance fraud. The cost of fraudulent claims to insurance providers is passed down to customers in the form of higher premiums.
So, the existence of CUE and the subsequent sharing of information can lead to fewer fraudulent claims. In turn, this can contribute towards insurers charging truthful policy holders lower premiums for car insurance.
How can I check the CUE database?
The good news is that you can in fact check the CUE database for any information held about you. You can do this by submitting a subject access request form on the Motor Insurers' Bureau (MIB) website.
The MIB is the data controller for the Motor Insurance Database (MID), so you can rest assured you're going to the right place!
If you realise that some or any of the details held about you are inaccurate, you'll need to contact your insurer. Ask your insurer for written confirmation that your details have been changed, your record on CUE should reflect this.
How does the CUE affect your car insurance?
When you're looking to buy or renew a car insurance policy, you'll typically be asked several questions - including your driving history. Part of this is disclosing any claims you've made on your car insurance over the previous 5 years (this timeframe depends on your insurer).
At this point, insurers cross-reference the CUE database to ensure the information you provide is both honest and accurate. Any incidents that you've reported to your insurer, but haven't claimed for, are also flagged.
Your driving history can directly impact exactly what you pay for car insurance, but this isn't the only thing that contributes to how car insurance is calculated. Your age, where you live, the car you drive, your estimated annual mileage and your occupation all feed into your calculated premium.
Top tip: Use our car insurance calculator to find out how much you could pay.
If motorists are honest and truthful, CUE can contribute towards a reduction in insurance fraud. On a broader level, this can keep the cost of car insurance down.
Why should you avoid lying to your insurer about your driving history? Well first of all, lying could invalidate your policy - and you wouldn't be able to claim if you needed to. Secondly, non-disclosure could deter insurers from offering you a policy in the future, or they might charge you a higher premium.
What sort of information do they hold?
CUE stores information relating to any claims, thefts, personal injuries and minor incidents over the past 6 years. As mentioned earlier, recorded incidents are logged - even if you didn't ultimately claim on your policy.
This information can help inform insurers of certain risks. For example, if there's a spike in car theft in a particular area, insurance providers can alter premiums for drivers in that area according to the risk involved.
Can I contact the CUE database to update information?
Yes, but your first course of action should be to contact your insurance provider. This is because information stored on the CUE database is supplied by insurers. So, it's worth checking with your insurance provider first that the information they hold is accurate.
You can then check with MIB if CUE has updated your record on the database.
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