Understanding How Insurance Companies Use Driving Records and External Data Reports
If you’ve recently been involved in a vehicle accident where you were not at fault, you may notice some unexpected entries on your driving record. For instance, after a rear-end collision last month in Texas, I received my Department of Public Safety (DPS) driving record, which now indicates a “CRASH EVENT,” though it does not specify fault. This raises an important question: how do auto insurance providers interpret and utilize such information when determining coverage and rates?
Driving Records and Their Role in Insurance Evaluation
Insurance companies often review a combination of official state records—such as those maintained by the DMV or DPS—and external data sources when assessing new policy applicants or renewing existing coverage. In the case of Texas, the DPS driving record reflects recent crashes, but notably lacks a fault designation in this instance. This can potentially influence insurance decisions, even if you were not to blame for the incident.
Do Insurers Rely Solely on State Records?
While some insurers may consult your official driver’s record, many also incorporate third-party reports to form a comprehensive view of your driving history. Companies such as LexisNexis and Clue provide detailed reports that include accident history, claims, and other relevant data. These reports often compile information from multiple sources, including insurance companies themselves, which share data to facilitate risk assessment and claims processing.
Which Data Sources Matter Most During Underwriting?
It’s important to understand that insurance providers may place significant weight on external databases like LexisNexis and CLUE, especially when evaluating applicants or adjusting rates. These sources can contain accident details that may not appear explicitly on your state record, or may include information about prior claims that you’re unaware of.
How Does LexisNexis Obtain Its Data?
The data aggregated by LexisNexis typically comes from insurers, claims adjusters, and other authorized entities. Insurance companies share relevant claims and accident information with these external agencies to streamline underwriting processes. This means that even if your official state record doesn’t specify fault or detail your crash, your insurance provider might access more comprehensive data through these third-party sources.
Key Takeaways for Drivers Involved in Recent Accidents
- Your state driving record may display recent crashes without fault designations, but this does not guarantee how an insurer perceives your risk.
- Insurance companies often review multiple sources, including state records and external reports from LexisNexis,
