Do Car Insurance Companies Do Background Checks?

Last Updated on February 5, 2026

When people ask whether car insurance companies “do background checks,” they usually mean: What information does an insurer pull about me before offering a policy? The short answer is yes—most insurers verify details about you before they quote or bind coverage. But it’s typically not the same kind of background check an employer runs.

Auto insurers mainly use your driving history, prior claims, and (in many states) credit-based insurance data to estimate risk and set your price. A traditional criminal background check isn’t always part of the process, but serious driving-related offenses and some public-record items can still affect underwriting—especially if you’ve been convicted of a crime.

If you’re shopping quickly because you need coverage now, you can usually still get insured—just expect the insurer to verify your information right away (or shortly after you bind). If speed is the priority, here’s how to obtain auto insurance immediately.

• Yes—car insurers typically verify your “background,” but it’s usually through driving reports, claims databases, and (in many states) credit-based insurance scoring—not an employment-style background check.
• Your Motor Vehicle Report (MVR) is usually the biggest factor, and major violations like DUI can heavily affect eligibility and pricing.
• Credit-based insurance data is still used in many states, but several states restrict or prohibit it—so the impact depends on where you live.
• If your rate changes after underwriting, ask why and review your reports—errors in driving or claims history can be disputed and corrected.

What “Background Check” Means for Car Insurance

Insurance is priced on risk. Companies collect data to estimate how likely you are to file a claim and how expensive that claim might be. That’s also part of how car insurance companies make money: premiums from lower-risk drivers help cover claims, while higher-risk drivers generally pay more.

In practice, “background check” usually means an insurer is pulling reports from third-party databases (and sometimes state agencies) to confirm what you put on the application and to set your rate.

What Car Insurance Companies Commonly Check

Most insurers review some or all of the following before quoting, binding, or renewing your policy:

• Motor Vehicle Report (MVR): Your license status, violations, accidents, and (in many cases) DUI-related entries.
• Claims history: Prior auto insurance claims and loss history (often through industry databases).
• Credit-based insurance data (where allowed): Not your “credit score” for loans, but an insurance-focused score built from your credit report.
• Prior insurance and lapses: Whether you’ve had continuous coverage, gaps, cancellations, or non-payment issues.
• Application consistency checks: Identity verification and fraud-prevention checks (especially when information doesn’t match across sources).

Depending on the company and state, insurers may also use limited public-record information. That said, for most drivers, the biggest pricing impact comes from the MVR, claims history, and (in many states) credit-based insurance scoring.

Driving Record: The #1 “Background Check” for Auto Insurance

Your driving record is usually the most important underwriting input. More tickets, at-fault accidents, suspensions, or major violations typically mean higher premiums and fewer carrier options. If you’re in this situation, start with insurers and shopping strategies built for drivers with bad driving records.

Major violations—especially impaired driving—tend to trigger the biggest rate jumps and underwriting scrutiny. If you’re wondering how carriers verify that kind of offense, here’s a deeper explanation of how insurance companies find out about a DUI.

How long does your driving record matter?

Insurers usually rate your driving history most heavily for the last few years, but the exact lookback depends on the state, the insurer, and the type of violation. Serious violations (like DUI) can affect pricing for longer, and may also require filings like an SR-22.

Criminal History: Sometimes Relevant, Often Indirect

Auto insurance underwriting generally focuses on driving-related behavior. That means many criminal matters won’t be directly reviewed the way they might be for employment screening. However, driving-related crimes (like DUI) frequently appear through your MVR and claims history, so they can still impact you even if no “full criminal background check” is run.

Also keep in mind that record rules vary: some charges can be reduced, sealed, or expunged depending on your state and the outcome of the case. If you have a complicated history, the safest approach is to shop multiple insurers and be prepared for follow-up questions during underwriting.

Credit Reports: Common in Many States, Restricted in Others

In most states, insurers are allowed to use credit-based insurance scoring as one factor in pricing. This is usually a soft inquiry (it won’t affect your credit the way a loan application might), and it’s used to price risk—not to decide whether you’re a “good person.”

But credit use isn’t universal. Several states restrict or prohibit how credit can be used in auto insurance pricing and underwriting. If you want to avoid credit-based pricing as much as possible, start here: no credit check auto insurance quotes.

What Happens If Something Doesn’t Match

It’s common for an insurer to give you an initial quote, then adjust it after reports are pulled (or after underwriting finishes). Price changes usually happen when the reports show:

• a ticket or accident that wasn’t listed
• a lapse in coverage
• a different garaging address or mileage than reported
• a license status issue (suspension/revocation)

Be especially careful with omissions. Even if it seems minor, misinformation can lead to re-rated premiums, a denied claim, or cancellation. If you’re tempted to “edit” your history to get a cheaper quote, read this first: what happens if I lie about my driving history to the insurance company?

How Your Background Can Affect Coverage Options

What an insurer finds can affect your policy in a few common ways:

• Higher premiums (the most common outcome)
• Payment restrictions (larger down payment, fewer installment options)
• Coverage restrictions (lower available limits, fewer optional coverages)
• Eligibility issues (some carriers may decline, especially after major violations)

This matters because nearly every driver needs insurance to stay legal. In most states, you’re legally required to carry auto insurance, and driving uninsured can create bigger long-term problems than paying a higher premium.

Example: DUI and premiums

A DUI is one of the clearest examples of how “background” issues affect auto insurance. Many drivers see steep increases, fewer standard-market options, and added requirements. For a detailed breakdown, see how much insurance goes up after a DUI.

How to Protect Yourself (and Your Rate)

• Shop multiple carriers. Every company weighs violations, claims, and credit differently.
• Ask what drove the price. If the premium jumped after underwriting, request the reason in plain language.
• Review your reports. Consider requesting your specialty consumer reports (like claims history) and disputing errors.
• Keep coverage continuous. Lapses often raise rates even if your driving record is clean.
• Focus on the next 12–36 months. Safe driving and clean renewal periods are what bring premiums back down over time.

FAQs on Car Insurance Background Checks