Understanding How Insurance Companies Use Driving Records and Incident Reports
Recently, a driver involved in a rear-end collision in Texas encountered some confusion regarding their driving record and insurance application process. After reporting the incident to the Texas Department of Transportation (TxDOT), the driver obtained their official driving record from the Texas Department of Public Safety (DPS). The record indicated a “CRASH EVENT,” but did not specify fault or responsibility for the accident.
This situation raises important questions about how insurance providers assess risk and determine premiums. Specifically, do insurance companies primarily consult state DMV records, such as those from Texas DPS, or do they rely more heavily on external databases like LexisNexis or CLUE reports? Additionally, how does information about incidents—such as no-fault accidents—appear in these records, and is that detail captured accurately?
In Texas, reporting a crash to TxDOT results in the inclusion of an event on your driving history, but the nature of the fault is not always specified within the official record. When shopping for auto insurance, the key concern is whether insurers will see this record and how they interpret it. Most insurance companies may access multiple sources of information: state DMV records, external data aggregators like LexisNexis, and claims databases such as CLUE.
LexisNexis, a notable provider of consumer data, compiles information from various sources, including insurance companies themselves. Typically, insurers share claim and accident data with LexisNexis, which then aggregates and makes this information accessible for underwriting purposes. This means that even if your driving record from the state shows only that a crash occurred, the insurer might also review LexisNexis reports, which could contain more detailed incident histories.
For drivers concerned about how their accident history affects insurance rates, it’s valuable to understand the data flow:
- State DMV Records: Show reported accidents, citations, and driving history. Fault details may not always be included.
- LexisNexis and Similar Databases: Aggregate data from various sources, including insurance claims. These reports can reflect details not visible in DMV records.
- Insurance Underwriting: May consider both sets of data when calculating premiums, meaning that even a no-fault incident can impact your rates if reported in claims databases.
In summary, if you’ve been involved in an accident that was not your fault, it’s essential to be aware that different data sources might present varying degrees of detail. When applying for insurance, your provider may
