Understanding How Auto Insurance Companies Use Driving Records and Incident Reports
If you’ve been involved in a car accident that you’re not at fault for—such as being rear-ended—it’s natural to wonder how this incident might impact your future insurance premiums or your driving record. Recently, some drivers have observed that their state Department of Public Safety (DPS) records now display an entry called “CRASH EVENT” following an incident, yet without any indication of fault.
For instance, after a recent collision, a driver submitted the accident report to the Texas Department of Transportation (TxDOT). Upon reviewing their Texas DPS driving record, they noticed the crash was documented clearly, but without any note about who was at fault. This raises questions about how such records influence insurance evaluations.
Do Insurance Companies Rely on State Driving Records or External Databases?
When applying for auto insurance, agents and underwriters typically review the applicant’s driving history. This information is often obtained directly from state DMVs or DPS records, which include documented crashes and violations. However, many insurers also access third-party data sources—most notably LexisNexis and CLUE (Comprehensive Loss Underwriting Exchange)—to build a comprehensive profile.
Is Your Not-At-Fault Accident Fully Reflected?
In some cases, your state record might show a “CRASH EVENT” without assigning fault. Since insurance companies often utilize the combined data from official records and third-party databases, the presence or absence of fault information in one source doesn’t guarantee its reflection elsewhere. Therefore, an incident marked as “not at fault” in your personal record might not be explicitly indicated in your insurance file, affecting how insurers perceive your risk.
How Do LexisNexis and CLUE Gather Their Data?
These information aggregators compile data from various sources—primarily insurance companies themselves. Insurance providers report claims, accident data, and other relevant information regularly, which LexisNexis and CLUE then aggregate into accessible databases. When an insurer assesses your profile, it may consult these sources to gain a fuller picture of your driving history and claim activity.
Key Takeaways for Drivers:
- Driving records are an important piece of the puzzle, but they are not the sole source insurers review.
- Accident fault information may not always be explicitly recorded in state documents; instead, it depends on how detailed and accurate these records are.
- Third-party databases like LexisNexis and CLUE play
