Understanding How Insurance Companies Access Driving Records and Crash Data
Many drivers find themselves in unexpected situations after an accident, especially when their insurance premiums are affected despite being deemed not at fault. Recently, I experienced such a scenario following a rear-end collision. Here’s what I’ve learned about how driving records and accident reports are utilized by insurance companies, particularly in Texas.
In my case, I was involved in a minor rear-end collision last month. I submitted a crash report to Texas Department of Transportation (TxDOT), and upon reviewing my Texas Department of Public Safety (DPS) driving record, I noticed the crash is documented with a “CRASH EVENT” notation. Interestingly, the record does not specify fault; it simply indicates that an incident occurred.
This situation raises an important question: when I shop for auto insurance in the future, will insurers review my state-issued driving records, or do they primarily rely on external databases like LexisNexis or CLUE reports? Given that my official driving record does not reflect the accident as being not at fault, it’s uncertain how this might influence my insurance rates.
Most insurance providers tend to consult multiple sources when assessing risk. They often access state DMV records, which include accident reports, but they also frequently use third-party data providers such as LexisNexis and CLUE. These companies aggregate information from various sources, including insurance companies themselves, to compile comprehensive driver profiles.
So, how does LexisNexis gather its data? Typically, insurance companies share claims and accident information directly with these data aggregators. They don’t rely solely on state DMV records, which may not always reflect fault status or all incidents. Instead, they use a combination of sources to build a detailed picture of a driver’s history.
In conclusion, while your state driving record notes the occurrence of an accident, it may not clearly indicate fault, particularly if the report was automatically generated or if fault was not explicitly designated. For insurance purposes, agencies often depend on a broader dataset supplied by third-party providers. This means that even with a clean DMV record, previous incidents—especially those shared with data aggregators—can influence your premium.
Ultimately, staying transparent about your driving history and understanding how your data is used can help you better navigate insurance shopping and potential rate adjustments.
