Understanding How Insurance Companies Use Driving Records and Accident Reports
Recently, I was involved in a rear-end collision in Texas. Although I was not at fault, I noticed that my Texas Department of Public Safety (DPS) driving record now includes a “CRASH EVENT” entry—though it doesn’t specify fault. Naturally, I’m curious about how this might impact my auto insurance considerations.
What Does a “Crash Event” on Your Driving Record Mean?
After the accident, I received an official crash report submitted to the Texas Department of Transportation (TxDOT). When I checked my driving record, the incident was visible as a crash event, but without any indication of who was at fault. This raises questions about how such entries influence insurance assessments.
Do Insurance Companies Review DPS/DMV Records or Rely on Third-Party Reports?
Many drivers wonder whether insurance providers primarily consult state DMV or DPS records when determining rates and eligibility. It appears that these agencies include crash data, but the information may be limited—especially regarding fault.
However, insurance companies often rely heavily on data from companies like LexisNexis or CLUE (Comprehensive Loss Underwriting Exchange). These third-party report services compile comprehensive claims histories, which can include accidents, claims, and fault information, often used to assess risk more thoroughly than state records alone.
Where Does LexisNexis Get Their Information?
The critical question is: how does LexisNexis acquire its data? Typically, insurance companies supply them with claims information, and in turn, LexisNexis aggregates this data to produce reports accessed during underwriting and claims processing. This means that your insurance company may share your claim details, including fault status, with these repositories, which then influence your future insurance options.
Implications for Drivers
If you’ve experienced an accident where you were not at fault, it’s essential to understand that such incidents might still appear on your driving record or third-party reports, possibly affecting your rates. However, the absence of fault indicators on your state record might mitigate some concerns. Nonetheless, insurance companies often depend on claims histories from third-party sources, which may present additional details.
Conclusion
Navigating how accidents influence insurance ratings can be complex. It’s advisable to review your driving records periodically, understand what information is available, and communicate proactively with your insurer if discrepancies or concerns arise. Being informed about how data is collected and used can help you
