When Lexis Nexis Makes A Mistake, You Pay For It

Errors in the data collected about consumers by this giant but little-known company could cause your insurance premiums to soar—or worse

- Alice Holbrook

THOMAS TOLBERT DOESN’T own a motorcycle. But when he switched insurance companies earlier this year, his premium almost doubled based on an incident he supposedly had on one, he says.

Tolbert says he traced the bad information to his Comprehensive Loss Underwriting Exchange (C.L.U.E.) auto report, a collection of data that auto insurers use to approve clients and set premiums. C.L.U.E. reports are generated and sold by LexisNexis Risk Solutions.

Consumers are often urged to regularly check for errors in credit reports from the big three bureaus—Equifax, Experian, and TransUnion. But you may want to add LexisNexis to the list.

The company aggregates and sells consumer data—about 150 different reports on people like you. While many data companies have a niche, such as credit or insurance, LexisNexis reports cover numerous aspects of consumers’ financial lives, helping other companies figure out whether to renew your insurance, approve your loan or offer you a job, among others. And, like credit reports from the big three, your LexisNexis file can contain mistakes, such as outdated information or data about someone else, which can adversely affect your finances.

While Tolbert’s report included the two vehicles he and his son drive, it also listed an alleged motorcycle incident probably involving a different Thomas Tolbert. (The other Tolbert could not be located for comment.) According to the report, the two Tolberts both live in Florida and at one time used the same insurer. They have different middle initials and different home addresses. LexisNexis had seemingly confused their data in what’s commonly known by industry experts as a “mixed file.”