Do Insurance Companies Check EDR? -A quick answer
The law requires that insurance companies check your driving record before issuing you a policy, so that you are only covered by insurance if you have a clean record.
Suppose you’ve had any accidents or traffic violations. In that case, it’s crucial to know how this affects your insurance rates, so we’ve put together this guide on everything you need to know about EDR and the reporting of insurance premiums in general. Do Insurance Companies Check EDR? Read on to find out!
What is EDR?
Event Data Recorders, or EDRs, are also known as black boxes. They’re built into all modern cars and trucks and record data in case of a crash. The event data records are one of the best tools for understanding accidents.
Do Insurance Companies Check EDR
When buying auto insurance, some companies use EDR (Event Data Recorder) data when pricing your policy. If a company looks at your EDR data and bases part of your rate on what it finds there, there’s a decent chance you could benefit from removing certain information from your car’s black box.
For example, suppose you frequently get into accidents or have heavy traffic and aggressive drivers in a region. In that case, EDR data might drive up your insurance rates by reflecting a high frequency of dangerous driving situations on those portions of roads where you spend most of your time driving.
What happens if you lie to an insurance company?
Generally, insurance companies can rescind your coverage if you lie to them during your application process. That said, most policies outline when and how they can deny coverage.
If you think you’ll be asked a question that you might not be able to answer truthfully, it’s a good idea to reach out to your agent beforehand and ask them what happens if you’re asked a question that has no right or wrong answer.
Will they still cover me? Is there any limit on how much I will have to pay? What should I do if I’m asked about my driving record? How quickly will my insurance company find out about any tickets or accidents I have?
Is it illegal not to give insurance details after an accident?
It’s not illegal not to give other parties insurance details after an accident. According to Section 192 of Florida’s Compiled Statutes, all drivers must carry liability insurance in amounts equal to the minimum coverage requirements that the state has set.
But it is illegal to make or distribute false statements or documents about financial responsibility, such as an auto insurance policy or registration certificate.
The statute says that makes it a third-degree felony and punishable by up to five years in prison, $5,000 in fines, and suspension of your driver’s license for one year. Florida law also requires you to file a motor vehicle collision report if more than $500 is damaged or more than one vehicle is towed from the scene.
Why do insurance companies deny insurance claims?
Perhaps you’ve been in an accident or suffered some other sort of loss and received a denial letter from your insurance company. What are they looking for?
They will look to see if your story matches up with what their investigators have found. Are there discrepancies between what you’re saying and what witnesses have reported? Any gaps in time?
As it turns out, insurance companies (especially auto insurance companies) are really good at ferreting out inconsistencies in stories. Once they find them, most will deny your claim, even if it is legit.
What happens if an insurance company refuses to pay a claim?
Most insurance companies check for an EDR if you file a claim, but it depends on which type of insurance you have. An SR-22 doesn’t require an EDR.
Auto insurance will ask for an updated report if a previous one is more than three years old, and homeowner’s insurance only requests proof every three to five years (or when a claim is filed).
If your insurance company refuses to pay a claim may be because of your alcohol history, they are required to refer you to a local substance abuse program approved by the Division of Alcohol and Drug Abuse Services (DAADS).
They may also require regular testing and treatment to keep your policy in force. This could help you regain coverage if you were previously refused due to alcoholism or drug addiction.
What information does an EDR record?
Every driver’s record is different, but an EDR typically contains information such as your driving history, whether you were cited for speeding, who has taken out what insurance policies on your car and who is listed as an additional driver on those policies.
It might also include other important details, such as if you have committed a driving violation or if you are eligible for a traffic citation reduction program.
How accurate is EDR data
There are no definitive statistics on how accurate EDR data is. However, such data is not to be taken at face value. While EDR data helps provide a framework for analysis, it shouldn’t be considered absolute truth.
There are too many mitigating factors involved in most insurance fraud cases for edr data to paint an entirely accurate picture of a given situation.
Who owns EDR data
The driving record data for individual drivers is owned by either a state’s department of motor vehicles or an equivalent agency. However, insurance companies can access it only if you buy your policy from them.
Therefore, to show that you have a good track record, it’s best to stick with one company and stay with them over time. Most insurance agencies will not be able to give you a discount on your auto insurance premiums if you switch policies frequently.
How long does EDR data last
The data in your car’s black box can last anywhere from two to seven years, depending on a variety of factors. The average retention period is three to five years but could be as little as 24 months. The point is to check with your car manufacturer and verify which period they use, and follow their advice.
What triggers an EDR?
Any time an event or action occurs that may pose a threat to your vehicle, an EDR will record it. This includes things like collisions, hard braking, acceleration and deceleration (even when going from 0 to 60 mph), freezing temperatures, engine turning off, etc.
Though each manufacturer specifies what will trigger an EDR’s recording system, these events are typically consistent across all vehicles equipped with an electronic black box.
Don't miss any update.
Enter your email to receive the exact Auto Insurance tips i practice!