Understanding How Insurance Companies Assess Traffic Incidents: What Your Driving Record Reveals
Recently, I experienced a minor car accident where I was rear-ended. After the incident, I submitted a crash report to the Texas Department of Transportation (TxDOT), and upon reviewing my Texas Department of Public Safety (DPS) driving record, I noticed a “CRASH EVENT” notation. Interestingly, this record does not specify fault, leaving me wondering how such information influences insurance decisions.
This raises an important question for drivers involved in accidents: When applying for auto insurance, what sources do insurers consult? Do they rely solely on state DMV or DPS driving records, or do they also consider third-party reports such as LexisNexis or CLUE?
From what I understand, insurance companies commonly review multiple data sources during the underwriting process. State records typically list recent accidents but may not specify fault, which could impact your insurance premium calculations. On the other hand, third-party databases like LexisNexis Aggregate and CLUE provide more comprehensive claims histories, often including details about fault, claim amounts, and accident circumstances.
But how exactly does LexisNexis gather this information? The prevailing industry practice is that insurance providers themselves share claim data with these agencies, enabling them to compile detailed histories. This shared data helps insurers assess risk more accurately, but it also means your detailed claims history is accessible from third-party sources beyond the state record.
If you’ve recently been involved in an accident, it’s a good idea to check your driving record and your claims history reports. Understanding what information is available to future insurers can help you better manage your insurance premiums and address any inaccuracies. Additionally, knowing how these different data sources operate can inform your decisions when shopping for auto coverage.
In summary, while state agencies record accidents and events on your driving record, insurers often rely on a combination of this data and third-party claims reports to evaluate your risk profile. Being aware of these sources can empower you to stay informed about your personal driving record and its potential implications for insurance coverage.
