Auto Insurance Companies That Don’t Use the LexisNexis System

The LexisNexis system provides insurance companies with detailed information about your driving record and claims history. There are very few auto insurance companies that don't use the LexisNexis system, but finding one isn't impossible.

UPDATED: Jul 22, 2022Fact Checked

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Written by Sara Routhier
Director of Outreach Sara Routhier

Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent Cynthia Lanctot

UPDATED: Jul 22, 2022

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A Concise Overview

  • LexisNexis collects a variety of personal information and makes it available to car insurance companies
  • Most insurance companies use LexisNexis to look at the last seven years of your driving and insurance history
  • State Farm is the only major car insurance company that doesn’t use LexisNexis, but you might also find local providers that don’t use it

If you’ve spent time looking at insurance quotes, you’ll know that companies look at many factors to determine your rates. From your age to your ZIP code, insurance rate formulas seem impossible to understand.

Many insurance companies rely on a system called LexisNexis to gather data about applicants. LexisNexis collects analytical data and sells it to various companies, including car insurance providers. You might not know LexisNexis has access to your driving records, but many companies use this data to determine your rates.

However, not all companies use LexisNexis driving record data. It isn’t easy to find providers that don’t use LexisNexis because it’s a valuable tool, but some don’t. If avoiding LexisNexis is your goal, local companies are often a good choice.

Read on to explore companies that don’t use the LexisNexis system, then compare quotes to find the best rate possible.

Which car insurance companies don’t use the LexisNexis system?

LexisNexis offers car insurance companies a quick and easy way to look at the riskiness of their applicants. Using the LexisNexis system, an insurance company can look at your last seven years of driving and claims history, including how much your claims cost.

Due to the usefulness of LexisNexis’ data, most car insurance companies use it. While you can probably find a smaller local provider that doesn’t use LexisNexis, it’s hard to find a larger company that doesn’t.

Of all the major companies in the U.S., State Farm is the only one that doesn’t use LexisNexis.

Rather than using the LexisNexis case management system, State Farm has developed its own system to assess applicants. Instead of looking at seven years, State Farm considers traffic violations and claims from the last three years.

If you’re interested in skipping LexisNexis, you can get a quote from State Farm. However, you’ll probably encounter higher rates than the national average. The average cost for full coverage with State Farm is around $220, while the national average is $162.

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What is the LexisNexis system?

LexisNexis Risk Solutions is a company that gathers consumer data through public records, cookies, and other digital services. You might be surprised to learn how much data LexisNexis can collect on you — everything from what jobs you’ve had to what licenses you possess.

When it comes to car insurance, LexisNexis analyzes data to predict the likelihood of future claims. Most companies use LexisNexis’ Comprehensive Loss Underwriting Exchange (CLUE) database to access information about drivers.

The CLUE database contains information about your insurance claims for the last seven years, including the following:

  • Dates
  • Type of loss
  • How much your insurance company paid
  • Claim numbers

CLUE also provides information about which companies you’ve had insurance with and your previous policy numbers.

LexisNexis encourages consumers to look at their CLUE report from time to time to ensure there are no inaccuracies that might drive up your rates. You can access a limited version of your CLUE report once a year for free. Any subsequent viewings require you to pay a small fee.

How does LexisNexis collect data?

LexisNexis collects data from a variety of sources, some of which you might not know exist. There are four primary sources that LexisNexis gathers information from:

  • Data you provide. LexisNexis encourages consumers to provide information, including email addresses, social media information, phone numbers, job titles, education, and payment information.
  • Data from organizations. If you’re affiliated with an organization, LexisNexis can collect related data.
  • Third-party data. LexisNexis collects data from various third-party sources, including social networks, service providers, businesses, and publicly available services.
  • Service use data. Service use data includes cookies, device information, location detection, educational services, and streaming services.

This is only a small selection of the data LexisNexis collects about you. Most people interact with technology multiple times throughout their day, and LexisNexis capitalizes on this usage by collecting every bit of data it can.

LexisNexis can create a reliable profile of your behavior by analyzing your data. Insurance companies use LexisNexis for this reason — your likelihood of being involved in future claims can be reliably predicted from your collected data.

Who uses LexisNexis data?

Insurance providers aren’t the only companies to use LexisNexis. If you’re concerned about your personal data being used, you should know that LexisNexis works with the following industries:

  • Other insurance companies, like life and healthcare insurance firms
  • Collection agencies
  • Local government programs
  • Financial services
  • Department of Homeland Security

As you can see, LexisNexis provides information to a vast network of businesses. Keeping your data out of the hands of collection companies like LexisNexis is difficult, but there are a few things you can do.

You can skip accepting cookies and deny information requests on some websites. You can also skip filling out personal information on some forms. However, there’s only so much you can do to keep your personal information private. In this digital world, companies like LexisNexis can easily gather your data.

Tips to Save on Car Insurance

Since insurance companies can look into your driving history for the last seven years with LexisNexis, you might be worried about how it will affect your rates. It’s true that having previous claims, accidents, or lapses in insurance will make your rates higher, but there are ways to save.

No matter what a LexisNexis report will find, here are some easy ways to lower your rates:

  • Compare quotes. One of the most important things to do when shopping is to compare different companies. You might have high prices with one provider and much lower prices with another.
  • Lower your coverage. If your insurance rates are simply too high, you might be able to lower your coverage. Speak with an insurance representative to learn what you can cut.
  • Raise your deductible. You can save money on your monthly bill by raising your auto insurance deductible. Be cautious, though — the higher your deductible, the more you’ll have to pay out of pocket.
  • Look for discounts. Most companies offer discounts for things like buying more than one policy, being a good driver, and having multiple cars. Ask your insurance representative to check your policy for savings.
  • Ask about low mileage. Many companies offer discounted rates for people who drive less than the average driver. Usage-based insurance plans can also save you money.
  • Keep your credit high. Insurance companies can look at your credit scores in most states. Maintaining a good credit score can help lower your rates.
  • Switch companies. If your rate jumps after you make a claim, you might need to switch to another company. Most policies don’t have an early cancellation fee, so there’s no reason to stick with high rates.

Although most insurance companies use LexisNexis to decide how much insurance will cost you, you can keep your rates down by following these tips.

Because many insurance companies use the LexisNexis system, you should never lie on an insurance application.They have access to so much of your driving history, so it’s easy to detect a lie. You might be denied coverage if you lie on your application.

How to Find Auto Insurance Companies That Don’t Use the LexisNexis System

Many people are alarmed to learn how much of their personal data is collected by systems like LexisNexis. Unfortunately, it’s one of the drawbacks of spending so much time digitally connected. There is a movement to limit how much personal data companies can collect. However, for now, everyone is stuck with LexisNexis driving record checks.

If you want to avoid companies that use LexisNexis, State Farm or local insurance providers are your best bet. Remember to compare quotes when you shop for insurance to make sure you find the best rates possible.

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