Understanding How Insurance Companies Assess Your Driving Record After an Unfaulted Accident
If you’ve recently been involved in a car accident where you were rear-ended but not at fault, you might notice some unusual entries on your driving record. For example, in Texas, your Department of Public Safety (DPS) driver record may display a “CRASH EVENT” notation following the incident, yet this entry typically doesn’t specify fault.
This situation raises important questions for drivers: When it comes time to shop for auto insurance, will insurers primarily rely on state DMV or DPS records, or do they turn to other sources like LexisNexis or CLUE reports? Moreover, how do these different sources influence your insurance premiums and coverage options?
What Does Your State Driving Record Show After an Accident?
In Texas, after a collision, a crash report is filed with the Department of Transportation (DOT) and subsequently reflected on your DPS driving history. While the record records the occurrence of the event, it often does not specify who was at fault. Thus, even if you were not to blame, the notation of a crash remains on your record.
Insurance Underwriting: State Records vs. External Databases
When you seek auto insurance, companies typically review multiple data sources to assess your driving history. Many insurers pull information directly from state DMV or DPS records, which detail reported accidents. However, a growing reliance on third-party databases, such as LexisNexis and CLUE (Comprehensive Loss Underwriting Exchange), has become common practice.
These external sources aggregate claims data from multiple insurers and report a broader picture of your recent insurance claims and accident history — often capturing incidents that may not appear on state records or are reported differently.
Do Insurance Companies Use Only State Records or External Reports?
Insurance companies generally consider both state records and external databases. State DMV records provide official documentation of reported accidents, but they may lack details such as fault or claim severity. External databases like LexisNexis collect claims data from multiple insurers, which might include details not present in state records. This combined approach helps insurers better assess risk, but it may also mean that some innocent accidents still impact your premium if they are reported in these external systems.
How Does LexisNexis Obtain Its Information?
LexisNexis compiles data from insurance companies and claims administrators. Essentially, insurers report claim details to these databases to streamline underwriting and claims management. Therefore, your accident history
