Understanding How Your Vehicle Accident Affects Your Insurance Records in Texas
Recently, a driver in Texas experienced a rear-end collision and sought clarity on how such an incident might influence their insurance profile. After submitting a crash report to the Texas Department of Transportation (TX DOT), they reviewed their driving record and noticed an entry labeled “CRASH EVENT.” Interestingly, this record did not specify fault, raising questions about how such incidents are reflected and used by insurance providers.
Does Your State Driving Record Impact Insurance Premiums?
In Texas, your driver’s abstract, available through the Department of Public Safety (DPS), records collision entries like “CRASH EVENT” on your record. However, it typically does not include detailed fault information. Many drivers wonder whether insurance companies access these state records when calculating their premiums or if they primarily rely on other sources.
Do Insurance Providers Use State Records or External Databases?
Most insurance companies supplement their risk assessment processes with third-party data providers, notably LexisNexis and CLUE (Comprehensive Loss Underwriting Exchange). These databases aggregate insurance loss and claim information, often yielding a more comprehensive view of a driving history, including prior accidents, claims, and other relevant data.
How Do Insurers Obtain Their Information?
The question arises: who supplies the data that populates these external databases? Typically, insurance providers themselves share claims and loss information directly with LexisNexis and similar reporting agencies, which then make the data available to underwriters. This process allows insurers to access detailed histories that may not be fully reflected in state driving records.
Implications for Drivers
Since state records usually note collision events without fault designation, and insurance companies primarily rely on their data sources, a non-at-fault collision might not significantly impact your insurance premium. However, it’s essential to be aware that external data aggregators could record such events, potentially influencing your risk profile.
Final Thoughts
If you’ve been involved in an accident, especially a non-fault incident, it’s beneficial to keep records and understand how your data is used. When shopping for insurance, providers may look beyond just DMV or DPS records and consider reports from external databases like LexisNexis. Being informed about these processes empowers you to better manage your driving and insurance history.
Disclaimer: Insurance policies and reporting practices can vary, so consulting with your insurer or a professional advisor for personalized guidance is recommended.
