An individual's driving record is often one of the most important variables in insurers' rating and underwriting plans. Risky driving behavior is also correlated to a higher frequency of filing a home insurance claim and signals increased mortality rates in life insurance. State Motor Vehicle Reports (MVRs) have traditionally been viewed as the 'gold standard' by insurers to verify an individual's driving record; however, MVRs can be expensive. MVRs may also lack conviction activity, which could be "costly" to insurers in terms of missed premium and unidentified risk.

However, combining MVR information with court record data provides a more comprehensive view into a person's driving record, often filling in the gaps that can be present in MVRs alone. Incorporating court record information into a national driving record solution allows insurers to optimize their expenses, eliminating MVR orders when the driver has no infractions on their record.

Related:  Personalizing the future of auto Insurance

Why reliance on state MVRs alone may prove costly

The MVR is administered through a state agency, often called the Department of Motor Vehicles (DMV). The DMV receives and transcribes violation conviction information from the courts. This transcription process of recording convicted traffic and criminal traffic data is usually automated, but lag times, errors and/or omissions can occur, especially in states where manual processes are used. Louisiana is a notable example, where only 28% of violations that were submitted to the Louisiana Office of Motor Vehicles throughout 2016 were posted by year-end.