Can car insurance companies check police records?

Do police notify insurance companies when they make reports? Car insurance companies can easily access police reports from any state’s department of motor vehicles (DMV). These police reports are used to determine your involvement in an accident and can be used for investigative purposes when you file a car insurance claim. Because insurance fraud is such a serious issue, insurance companies have the right to perform due diligence investigations on any claim received. 

In most cases, police reports affect your insurance rates. If you’re concerned about a recent police report or are just interested in learning more about what information your insurance company can see, we’ve got your answers right here. We can also help you find the best full coverage car insurance rates.

How do car insurance companies get police reports?

Anytime the police are called to the scene of an accident, the officer will file a report. The information in the report is based on the officer’s observations at the scene and his conversation with those involved in the accident. The officer may also interview any eyewitnesses and include information obtained from them in his report.

The police report is submitted to the state, which means the DMV has it on record. Insurance companies can gain access to any police reports that the DMV has access to, which means information about any reported accident is going to be in the database. 

What information is on a police report?

Police reports after an accident will include pertinent information, such as:

• Date of the accident
• Description of the incident
• The extent of the damage

These reports are critical as they can determine who was at fault in the accident. For example, if you were side-swiped due to an illegal turn, the police report should indicate this. The insurance assessor would view the facts and, in this case, place the other driver at fault. Therefore, this information would not have a negative effect on your rates. 

These reports will stay on your driving record for up to seven years. Insurance companies typically won’t go back further than three years into your driving record, though, to determine your rates. (For more information, read our “How far back do car insurance companies look?“).

How do car insurance companies use police reports?

Yes, the effects of a police report on insurance rates can be significant. Insurance companies use police reports for a couple of primary purposes.

Investigating Claims

When you file a car insurance claim, your insurance company will likely pull the police report. This is to ensure that the claim is legitimate and to determine who was at fault. Insurance companies can also use the police report to gain access to the contact information of any witnesses to the accident. This information can be used to talk to the witness to clarify any ongoing concerns.

An investigation helps the company determine how it should proceed with the claim. Therefore, it is critical to always be honest and forthright when making an insurance claim. If false claims are made, the insurance company will find out.

Determining Rates

Insurance companies use your driving record to determine your rates. If you have a recent police report indicating you were at fault in an accident, chances are your premium will increase as a result. As we mentioned, insurance companies typically only look back three years, so older police reports are unlikely to have an effect.

However, each state has different laws on how far back insurance companies can look, so you’ll have to check with your state department of insurance for clarification.

Police reports can be pulled to adjust your rates at any time. This includes getting a quote for a new policy, when your existing policy is about to renew, or when a recent claim has been made.

Read More:

• Car Insurance Claim Investigation (Expert Guide)
• Compare Best Car Insurance Companies That Don’t Report to the DMV When They Cancel a Customer
• Compare Best Car Insurance Companies That Only Look Back Three Years
• How much does bankruptcy affect car insurance rates?

Case Studies: Can Car Insurance Companies Check Police Records?

Case Study 1: SafeRide Insurance Company

SafeRide Insurance Company, a reputable insurer known for its meticulous risk assessment practices, faced a unique situation when a policyholder filed a claim after a car accident. The policyholder had a history of reckless driving, which was unknown to the insurer at the time of issuing the policy.

During the claims investigation, SafeRide Insurance discovered that the policyholder had multiple speeding tickets and a previous DUI charge on their police record. These findings significantly influenced the outcome of the claim, leading the insurer to deny coverage due to the policyholder’s previous infractions.

Case Study 2: TrustShield Auto Insurance

TrustShield Auto Insurance, a renowned insurance provider committed to transparency and fairness, received an application from a prospective policyholder. While the applicant appeared to have a clean driving record, TrustShield’s underwriting team decided to conduct a comprehensive background check.

In the process, they accessed the applicant’s police record, revealing a pattern of traffic violations and a recent hit-and-run incident. Armed with this information, TrustShield Auto Insurance offered the applicant coverage but at a higher premium rate to reflect the increased risk associated with their driving history.

Case Study 3: SecureDrive Insurance Corporation

SecureDrive Insurance Corporation, a well-established insurance company with stringent risk assessment protocols, experienced a puzzling situation with one of its policyholders. The policyholder had been involved in a series of minor accidents, yet their driving record showed no infractions or police reports related to these incidents. Suspecting potential fraud, SecureDrive Insurance decided to investigate further.

They collaborated with law enforcement agencies and discovered that the policyholder had been involved in numerous accidents but had intentionally avoided involving the police, thus evading any official records. This revelation prompted SecureDrive Insurance to cancel the policy and take legal action against the policyholder for insurance fraud.

Case Study 4: RapidCover Insurance Services

RapidCover Insurance Services, a trusted insurance provider known for its efficient claims processing, encountered a challenging scenario when a policyholder reported their vehicle as stolen. While reviewing the claim, RapidCover Insurance accessed the police records associated with the reported theft. The records revealed inconsistencies in the policyholder’s statement, indicating potential fraud.

Further investigation revealed that the policyholder had a previous criminal record involving insurance fraud. Armed with this information, RapidCover Insurance denied the claim and terminated the policyholder’s coverage. (For more information, read our “Will a criminal record affect car insurance rates?“).

Always Assume Your Insurance Company Will Pull Your Police Report

While it is possible that your insurance company won’t pull a police report when a claim is made, the chances are high that it will. You should always assume your insurance company will obtain the report one way or another.

If your rate increases due to an accident where the police report reflects you were at fault, you should consider shopping around for the cheapest car insurance companies. Just because your current company raised your rate doesn’t mean that another company won’t be able to offer you more affordable insurance, even after a police report states you as the driver were at fault.