Understanding How Auto Insurance Companies Review Your Driving Records and Incident Reports
If you’ve recently been involved in a car accident, especially one where you’re not at fault, you might wonder how such incidents impact your insurance profile. Here’s an example scenario — imagine you were rear-ended last month in Texas, and now your driving record reflects this event as a “CRASH EVENT” without indicating fault. Naturally, questions arise: Will insurers consider this record when setting your premiums? And what sources of information do they rely on?
The Texas Department of Public Safety (DPS) maintains driving records that include reported crashes. When a crash occurs, a report is typically submitted to the Texas Department of Transportation (TX DOT), and your driving history may be updated to include this incident. However, the record might not specify whether you were at fault or not — it simply notes that a crash occurred.
So, when you’re shopping for auto insurance, what information do insurers actually review? Do they solely rely on official state DMV or DPS records, or do they incorporate additional reports? Many insurance companies also consult third-party data services like LexisNexis and CLUE (Comprehensive Loss Underwriting Exchange). These databases compile claims and incident reports from various sources and are heavily used in the industry for underwriting and rate setting.
Where Do Insurance Companies Get Their Data?
While exact procedures can vary, insurance providers often access multiple data sources:
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State DMV/DPS Records: These include traffic violations, accidents reported to the state, and sometimes conviction details.
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Third-Party Data Providers: LexisNexis and CLUE aggregate information from insurance claims, DMV records, and public records. They help insurers get a comprehensive view of your driving history and claims history.
Do Insurance Companies Share Data with These Sources?
Yes. Insurance companies typically report claims they handle to these databases, which then compile the information into your file. This means that even if it’s not explicitly labeled as “at-fault,” the fact that an incident occurred could influence your future insurance quotes.
Implications for Drivers:
If an incident appears on your record but lacks fault details, your insurance rates might still be affected, especially if the insurer considers the event as part of their risk assessment. To better understand your specific situation, consider requesting a copy of your driving record from the DMV or DPS, which can clarify what information is publicly available. Additionally, reviewing your CLUE report periodically can help identify what insurers might see when
