Understanding How Auto Insurance Companies Use Traffic Records: What Drivers Need to Know
If you’ve recently been involved in a car accident, especially one where you were not at fault, it’s natural to wonder how this will impact your insurance and driving record. Here’s a scenario many drivers face: after being rear-ended last month, you receive your Texas Department of Public Safety (DPS) driving record, which now displays a “CRASH EVENT” notation without any fault attribution. This raises an important question—how do insurance companies evaluate such incidents? Do they rely solely on state records, or do they also consult third-party databases like LexisNexis and CLUE reports?
The Nature of State Driving Records
In Texas, when a crash report is filed with the Department of Transportation (DOT), it becomes part of your official driving history, visible on your DPS record. Typically, such records indicate the occurrence of an accident but may not specify fault unless explicitly noted. This is crucial because insurance companies often review these records during the underwriting process to assess your driving history.
Insurance Underwriting and Record Checks
When you shop for auto insurance, providers may review your state DMV or DPS record as part of their risk assessment. However, many insurers also utilize external data sources, including LexisNexis and CLUE reports, to gather comprehensive information about your claims history, traffic violations, and accidents.
LexisNexis and CLUE Reports: What Are They and How Do They Work?
LexisNexis is a data analytics company that compiles information from various sources, including insurance claims, court records, and public records. Insurance companies often share claims data with them, enabling insurers to gain a deeper understanding of a driver’s history.
Similarly, CLUE (Comprehensive Loss Underwriting Exchange) reports serve as a repository of claims history maintained by LexisNexis. These reports typically include details such as claim dates, incident descriptions, and involved parties.
Where Do Insurance Companies Get Their Information?
Insurance providers generally obtain claims and incident information directly from insurers themselves, which they then share with LexisNexis or CLUE for database inclusion. They may also access court records or public databases to verify details about accidents and claims.
Implications for Drivers Who Are Not at Fault
If you were rear-ended and found that your state driving record reflects a crash event without fault details, this might not be the complete picture from an insurer’s perspective.
