Understanding How Insurance Companies Use Driving Records and External Data After a No-Fault Accident
If you’ve recently experienced a car accident where you were rear-ended yet were not at fault, you might be concerned about how this incident will impact your driving record and future insurance coverage. For drivers in Texas, it’s important to know what information appears on your official driving record and how insurance providers assess risk.
Recently, after my own crash, I obtained my Texas Department of Public Safety (DPS) driving record. It clearly shows a “CRASH EVENT” associated with my license, though it does not explicitly indicate fault. This raises an important question: when applying for auto insurance later, will insurers examine state-specific records like those from the DPS or DMV? Or do they rely solely on third-party data sources such as LexisNexis or CLUE reports?
In my experience, state records typically list any reported accidents, regardless of fault, and may include details like crash dates and locations. However, these records often do not specify whether you caused the collision. Insurance companies, on the other hand, often have access to broader data through private databases, which may incorporate information from various sources, including insurance companies themselves.
LexisNexis and similar services compile claims data, traffic violations, and sometimes accident histories—often sourced directly from insurers. They may also receive information shared voluntarily by insurance companies to create comprehensive profiles used for underwriting and risk assessment.
In summary, while your official driving record offers a snapshot of reported incidents, the true extent of an insurer’s knowledge depends on their data sources. It’s advisable to be proactive: consider checking your report before renewal time, and inquire with your insurer about how accident data is obtained and interpreted. Maintaining transparency and understanding the nuances of your driving record can help you better navigate future insurance applications and ensure your driving history accurately reflects your circumstances, especially in cases of no-fault incidents.
