Cheapest Car Insurance Companies That Don’t Use the LexisNexis System in 2023

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

UPDATED: Mar 29, 2022

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Key Takeaways

  • State Farm auto insurance doesn’t always pull a LexisNexis report and uses an internal system
  • Smaller local insurance companies sometimes don’t use LexisNexis and can offer cheaper rates
  • Fixing your LexisNexis report may be a better alternative if you’ve been denied insurance

Those looking for auto insurance sometimes prefer companies that don’t use the LexisNexis system as part of their underwriting review process.

The reasons for this are varied. For some, it can be due to erroneous information within these LexisNexis generated reports. For others, it can be due to past denials or other issues brought up during the reports.

So for this reason, we’ll look into what companies offer car insurance without using LexisNexis and which are the lowest cost.

What is LexisNexis and what do they supply to insurance companies?

LexisNexis is an information and reporting service used by various companies and agencies around the world.

When it comes to insurance, they provide what is called a C.L.U.E report, which is an acronym for a Comprehensive Loss Underwriting Exchange report.

This report details any loss claimed by the person seeking insurance. This includes the amount of the loss, type of loss, the policy details, and most other information related to any previous insurance claims involving a loss over the past seven years.

As a side note, all data held within these reports are subject to the rules and guidelines of the Fair Credit Reporting Act, originally enacted in 1970.

Which auto insurance companies do not use a LexisNexis C.L.U.E report?

A LexisNexis C.L.U.E report has become the industry standard when doing an underwriting review of new policies. So most every major insurance auto insurance company uses the service to base their underwriting decisions. The only major insurance company to not use the service is State Farm.

State Farm uses its own internal and proprietary reporting and underwriting review system. So they do not always use the LexisNexis reports when reviewing new auto policies.

However, their system may contain similar information. For example, real claims or losses in the previous 7 years will still most likely appear in the State Farm internal report. However, erroneous information that may exist in LexisNexis for a given individual may not appear in the State Farm reports.

Finally, State Farm may still pull other information other than a C.L.U.E report from LexisNexis.

What other car insurance providers do not use the LexisNexis system?

As mentioned above, most every large auto insurance provider uses the LexisNexis system, with State Farm as the one partial exception.

The next alternative to State Farm would be to use smaller auto insurance providers that are local to your area. These smaller low-cost auto insurance companies sometimes don’t use the LexisNexis system when reviewing new customers.

The problem is that most of these companies don’t disclose whether they use LexisNexis or not, so there is often no way to know by doing a search or visiting their website.

Oftentimes, you will need to contact them directly based on your location, then simply ask via a telephone call or support email. Most of these companies will have no issue answering your question.

What other options do I have if I can’t find auto insurance?

If you are unable to find a local auto insurance company to work with that doesn’t use a C.L.U.E report, there is another option to find the cheapest alternative.

You can go through a local insurance agent. An agent can help work with your specific situation and they can also submit your application to several companies at once, increasing the chance of approval. This process also allows you to compare the different offers to find the cheapest insurance that doesn’t use LexisNexis.

Is there a way to fix my LexisNexis report?

If you’re still having problems, it may be best to try to fix your LexisNexis report if you believe there is false or erroneous information contained within it. Thankfully, you are able to access the report and determine if any information is incorrect.

If you were denied a policy based on your LexisNexis report (referred to as an “adverse action”), you are legally entitled to receive a copy of the report for free. You can obtain the report by contacting LexisNexis at 866-312-8076 or by visiting their website.  You are also entitled to one free copy of the report annually regardless of whether you’ve received an adverse action or not.

Trying to find an auto insurance company that doesn’t use a C.L.U.E report can be a difficult task. But with a little research based on your local area, you should be able to find a smaller provider that fits your needs and offers you the cheapest auto insurance.

If your problem is simply that there is false or erroneous information within the C.L.U.E report provided by LexisNexis, then it may be easier to try to fix the error by contacting the agency and opening an investigation.

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