Understanding How Auto Insurance Companies Use Driving Records and Third-Party Data Following an Accident
If you’ve recently experienced a vehicle collision where you were not at fault—such as a rear-end incident—many drivers wonder how this will impact their insurance premiums and how insurance providers evaluate their records.
Recently, I encountered this situation firsthand. After being rear-ended last month in Texas, I filed a crash report with the Texas Department of Transportation (TxDOT). When I obtained my Texas Department of Public Safety (DPS) driving record, I noticed it listed a “CRASH EVENT” related to the incident but did not specify fault.
This raises an important question: When I shop for auto insurance in the future, will insurers review my state or DMV records? Or do they primarily rely on external data sources like LexisNexis or CLUE reports? Importantly, my driving record does not reflect that I was not at fault; it simply notes the crash event.
The answer depends on the insurance company’s data sourcing practices. Many insurers do review your state-held driving records, which may include crash history. However, they often supplement this information with data from third-party reporting agencies such as LexisNexis and CLUE (Comprehensive Loss Underwriting Exchange).
So, how does LexisNexis obtain its information? Typically, insurance companies themselves provide claims data to these aggregators. This means that details about your claims, accidents, or incidents can be shared with LexisNexis and similar entities, which compile comprehensive reports used for underwriting and rating purposes.
It’s important to understand that while your driving record might show a crash without fault designation, external reports can include more detailed claims information—sometimes indicating fault or faultless status depending on the data shared by insurers.
Key Takeaways for Drivers:
– Your state or DMV driving record may list crash events, but not necessarily assign fault.
– Insurance companies often use a combination of state records and third-party data sources like LexisNexis or CLUE when evaluating your risk profile.
– The information in LexisNexis reports generally comes from the claims data shared directly by insurance companies.
– Transparency regarding how fault is reported can vary between different data sources, so understanding your rights and records can be beneficial.
If you’re concerned about how your recent incident might influence future insurance quotes, it’s worth reviewing your driving records and understanding what information different providers consider. Additionally, maintaining a clean record and understanding how various data sources operate can help you
