Understanding How Insurance Companies Use Driver Records After an At-Fault-Free Accident
If you’ve recently experienced a car accident where you weren’t at fault, you might wonder how such incidents influence your insurance profile—especially when reviewing your driving record for future insurance quotes. Here’s some clarity on the process, based on recent experiences and industry practices.
Scenario Overview:
After being rear-ended last month, you reported the incident to the Texas Department of Transportation (TxDOT), which then updated your driving record to include a “CRASH EVENT.” Importantly, your record doesn’t specify fault—the event simply appears on your driving history.
Key Questions:
One common concern is whether insurance providers review official state driving records—or if they rely on other sources like LexisNexis or CLUE reports—when determining premiums. Typically, insurance companies may look at multiple data points:
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State Driver Records (DPS/DMV): These provide an official history of incidents reported to the Department of Public Safety. They may include crash events, citations, and license status, but often do not specify fault in a manner detailed enough for insurance rating purposes.
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Claims and Incident Reports (LexisNexis, CLUE): These third-party databases compile data from insurance claims, law enforcement reports, and other sources. They can provide a broader view of your risk profile, including accident history, regardless of fault.
How Do Insurance Companies Obtain This Information?
Most insurers gather data from multiple sources. State records are publicly accessible or shared with insurers through contracted data exchanges, but companies, in addition, often subscribe to comprehensive risk assessment tools like LexisNexis Risk Solutions. The specifics of how LexisNexis acquires information vary, but generally, insurance companies themselves share claim details and incident reports with these aggregators to enhance their underwriting process.
Implications for Policyholders:
The absence of fault designation on your driving record means that, in the state database, the event is recorded but not necessarily flagged as a liability. However, when you apply for insurance, providers may consult their own data sources—like LexisNexis—to get a complete picture. This could influence your premiums, even if you were not at fault.
Bottom Line:
If you’ve been involved in an accident where you weren’t at fault, your official driving record will show the incident, but it typically won’t reflect fault details explicitly. Insurance companies might rely more heavily on third-party data services to evaluate your risk profile. Understanding what information is used can help
