Understanding How Insurance Companies Assess Your Driving Record After a No-Fault Accident
Navigating the aftermath of a recent car accident can be complex, especially when it comes to how your driving history impacts insurance decisions. If you’ve experienced a rear-end collision where you were not at fault, you might notice changes in your official driving record that raise questions.
Recently, a driver in Texas reported that, after being rear-ended last month, their Texas Department of Public Safety (DPS) record updated to include a “CRASH EVENT” entry. Importantly, this entry did not specify fault — indicating that while the incident is recorded, responsibility is not assigned.
This situation prompts an important question: When shopping for auto insurance, do insurers primarily rely on state Department of Motor Vehicles (DMV) records, or do they depend more heavily on third-party data providers like LexisNexis and CLUE reports?
Do Insurance Companies Tap Into State Records or Third-Party Databases?
Typically, insurance providers obtain information from multiple sources. State DMV records often include crash events, violations, and license status, but they may not always specify fault or provide detailed context. Conversely, third-party databases like LexisNexis and CLUE aggregate claim history and accident details from various sources, including insurance companies themselves.
Implications for No-Fault Incidents
In cases where the accident is officially recorded without a fault designation, insurance companies may interpret this information differently. Some might consider the mere occurrence of a crash as a risk factor, while others focus more on fault or liability details.
How Does LexisNexis Gather Their Data?
LexisNexis compiles data from insurance companies, which share claims information with them—either directly or through industry channels. This enables insurers to access comprehensive histories, including accident reports, claims, and other relevant data, which can influence premium calculations and underwriting decisions.
Takeaway for Drivers
If you’ve been involved in an incident where you were not at fault, it’s advisable to understand how this information appears on your record and how it might influence your insurance rates. Regularly reviewing your driving and claims history, and knowing the sources insurers use, can help you better manage your coverage and expectations.
In Summary
- State DMV records can include accident reports, but may not specify fault.
- Insurance companies often use both DMV data and third-party reports from providers like LexisNexis.
- LexisNexis