Do insurance companies report accidents to the DMV?

Insurance Q&A: “Do insurance companies report accidents to the DMV?”

The short answer is “no.” Insurance companies do not report accidents to the DMV.

But that doesn’t mean the DMV isn’t aware of an accident you were involved in.

Accidents that generate a police report are filed with the DMV. In some states, however, police reports aren’t necessarily generated for minor accidents.

If this is the case, there’s no information to report to the DMV (and the insurer isn’t going to report the accident if a claim isn’t filed).

In fact, insurers aren’t aware of an accident unless it is reported to them and an insurance claim is filed in the first place.

Note: Every insurance policy requires the insured to file a claim for every accident…no matter how small.

Unfortunately, many accidents are not reported because individuals choose to try to settle the damages “without getting the insurance companies involved.”

Don’t go this route. An insurance company can deny future claims resulting from an accident you didn’t report (it’s in the policy contract you signed, take a look).

Example:

You pay someone $500 out of your own pocket to pay for his dented bumper and don’t tell the insurer. Or you got a ticket for going 40 over the speed limit and don’t tell the insurance company about your speeding ticket.

A few weeks later you get a letter from the guy’s attorney, suing you for $20,000 worth of medical bills.

Your insurer will deny your claim because you didn’t report the incident in the first place…this happens EVERY SINGLE DAY in the United States.

What type of accidents are reported to the DMV?

Your insurance company does exchange information with the DMV when it relates to SR-22 filings.

Read more: What is an SR-22 filing?

If you are caught driving without insurance or convicted of another serious driving offense (think DUI or leaving the scene of an accident), your insurance company must present monthly paperwork (actual paper or electronically) to the DMV to demonstrate that you have at least the state minimum car insurance policy in force.

And if your policy lapses for any reason, your insurer will notify the DMV immediately.

Forget to make a monthly payment or just let the policy expire, and the insurer will blow the whistle to the state.

Depending on which state you reside in, your license may be immediately suspended if the DMV gets wind of your lapsed coverage. You may be in serious trouble if pulled over while driving on a suspended license and right back to square one with your driving troubles.

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Where is my accident record kept?

Insurance companies check driving records and accidents as well as collect and report these to third-party vendors who keep a database detailing the information. The reports are referred to as your MVR (motor vehicle record) and CLUE (comprehensive loss underwriting exchange) reports. (For more information, read our “What if my C.L.U.E. and MVR reports are wrong?“)

Read more: What is a CLUE report?

These reports are run for property and casualty insurance underwriting purposes. These reports ensure insurance companies properly rate an individual for auto or property insurance (homeowners, renters insurance) based on their statistical chance of filing a claim.

Without these reports, we could simply switch insurance companies after every claim and present ourselves to another insurer who would “rate” us as claim-free.

Insurers would lose a lot of money if they weren’t able to keep track of everyone’s driving records and claims history.

How do I report an accident?

Contact your local law enforcement agency, ideally from the accident scene, to report the accident. A police officer should come to your location and fill out an accident report, which you will need when you call your insurance company. You should also take pictures of the vehicle damage if you can.

If someone is injured, call 911. Do not try to move the injured person unless they are in harm’s way.

If you are not given a copy of the report at the accident scene, make sure you ask the law enforcement officer exactly where and when you can get it.

Different states have different reporting requirements when it comes to notifying the DMV of an accident.

Will an accident affect my auto insurance rates?

An accident might raise your insurance rate. If you were deemed at fault for the accident, this is called a chargeable accident and it will cause your insurance premium to increase. In some states, a chargeable accident is defined more specifically as an accident that caused, for instance, $500 or $1,000 in property damages or bodily injury, which the insurance company had to pay.

A no-fault accident will not raise your insurance premium, and if your insurance provider offers accident forgiveness, you may not have to pay more for your first accident.

If your accident involved driving recklessly or driving under the influence, you can expect an even more severe hike in rates, and your insurer could choose to drop you altogether. You might also have your driving privileges revoked.

If your auto insurance rates have gotten too high due to an at-fault accident or for any other reason, make sure to compare auto insurance quotes from multiple companies. There may be a better deal available to you.

Read More: At-Fault Accident: What is it and how is fault determined?

Ready to shop for auto insurance before or after an accident?

Shopping for a better insurance premium after an accident or ticket is highly recommended. Your particular insurer may not be comfortable insuring drivers with tickets or accidents.

Read more: What is an insurance premium?

While you may be spared car insurance cancellation and non-renewal, your premiums may shoot through the roof (speeding tickets and insurance). (For more information, read our “How do insurance companies find out about speeding tickets?“)

Get insurance quotes online or visit a local independent insurance agent to shop your tarnished record with insurers who are more comfortable insuring those of us with not-so-perfect driving records.

Read more: Do I have to tell my insurance company about my speeding ticket?

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