Using MVR Reports for Insurance Underwriting

Motor vehicle records (MVRs) are a critical tool for insurance agents during the underwriting process. Reviewing a driver’s MVR provides objective information about their history and risk profile. This guide will explain what MVRs are, what’s in them, how agents use them, and where to get reliable reports.

What is an MVR Report?

An MVR is a record of a driver’s history maintained by their state Department of Motor Vehicles (DMV). It lists information like:

• Driver’s license details

• Traffic violations and accidents

• License suspensions or revocations

• Owned vehicles and registration data

• Status checks like non-insured vehicles

MVRs provide a comprehensive view of a driver’s past behavior and risk factors. They are a vital part of insurance underwriting for auto, life, homeowners, and umbrella policies.

What Information is in an MVR Report?

While specific content varies slightly by state, MVRs generally contain:

• Driver info – Name, license number, address, birth date, physical details

• License status – Original issue date, expiration, endorsements

• Violations – Speeding tickets, DUIs, reckless driving, other infractions

• Accidents – Dates, severity, fault determinations

• Suspensions/revocations – Reasons and time periods

• Vehicle registrations – VINs, plate numbers, ownership details

• Insurance lapses – Gaps in required liability coverage

• Demographics – Gender, height, weight, eye color

Reviewing violations, at-fault accidents, and suspensions on an MVR provides objective insight into a driver’s risk. This data guides underwriting and pricing decisions.

Why Do Insurance Agents Order MVRs?

Agents use MVRs primarily for:

• Underwriting – MVRs inform risk assessment for policy rating and approval.

• Renewals – Updating MVRs can reveal changes requiring premium increases.

• Claims investigation – MVRs verify policyholder details after an accident.

• Compliance – MVR reviews help meet state insurance regulations.

• Fraud prevention – MVRs validate customer-reported information.

While insurance applications provide self-reported details, MVRs offer verified information from an official source. This paints a more complete risk profile.

When Do Agents Need MVR Reports?

Common situations when agents order MVRs include:

• New business underwriting

• Adding a vehicle or driver to a policy

• Renewals to capture latest violations and claims

• Policy changes like increased liability limits

• Applicants with self-reported violations or accidents

• High-risk drivers based on demographics

• Post-claim investigations to confirm policyholder data

• Random audits for quality assurance

Regular MVR checks are key, as driving history can change frequently. Continual monitoring provides the most current data.

How Do Insurance Agents Use MVR Reports?

Agents use MVRs in several ways during underwriting:

• Review violations, at-fault accidents, and serious offenses

• Verify self-reported driver history from applicants

• Check for undisclosed drivers or vehicles

• Identify lapses in insurance coverage

• Confirm license status is valid and appropriate

• Assess surcharges for high-risk drivers

• Adjust rates based on trends like frequent speeding

• Decline applicants with egregious driving records

MVRs that reveal misrepresented or undisclosed information may warrant policy cancellation or non-renewal.

What Are the Limitations of MVR Reports?

While extremely helpful, MVRs do have some limitations to consider:

• Not all traffic convictions appear; minor ones may drop off over time

• Accidents where the driver wasn’t ticketed may not be listed

• Out-of-state violations often don’t appear on MVRs

• Only includes information the DMV has collected

• Differs across states in content and format

• Can have errors like mistaken identity or violations

• May not reflect very recent events if not updated yet

Using MVRs alongside other tools like CLUE auto loss reports provides a more complete picture.

Where Can Insurance Agents Get MVR Reports?

There are a few options for insurance agents to obtain MVRs:

• Direct access – Larger insurers often have direct connections to state DMV systems to run MVRs in-house.

• Third-party providers – Many agents use services like LexisNexis or Integrion that order MVRs in bulk and resell them.

• Individual online orders – Some state DMVs allow insurers to request MVRs through their website portal.

Direct integrations provide the fastest access and lowest per-report cost. But third-party services offer convenience and efficiency for smaller agencies.

How Much Do MVR Reports Cost?

MVR costs range from around $5-$50 per report depending on:

• State – Rates vary widely by jurisdiction

• Source – DMVs charge less than third parties

• Volume discounts – Bulk orders reduce per-unit costs

• Delivery speed – Instant reports cost more

• Business use – Commercial rates are higher

Running MVRs costs substantially less than the potential claims exposure from high-risk drivers. Regular monitoring provides long-term savings.

Using MVRs for Safer and Profitable Underwriting

MVR reports remain a foundational tool for insurance underwriting. The motor vehicle history they provide allows agents to assess risk consistently and objectively.

By regularly monitoring drivers’ records, insurers improve underwriting precision, comply with state regulations, and ultimately write safer and more profitable policies. Integrating reliable MVR data in underwriting helps agents optimize pricing while reducing claims.