CARFAX® Receives Patents for Insurance Underwriting/Rating of Vehicles
For further information: Christopher Basso, Carfax Public Relations, Phone (703) 934-2664
CENTREVILLE, Va. (Sept. 10, 2012) -- Carfax, Inc. today announced that the U. S. Patent and Trademark Office has issued to Carfax two patents recognizing its innovative systems and methods for using vehicle history data in the process of underwriting and rating vehicles for insurance. Carfax's unmatched combination of these patented inventions and its comprehensive vehicle history database can help auto insurers better assess and price risk.
Patents 8,255,243 and 8,255,244 describe Carfax's unique technology for using a wide variety of vehicle history variables (such as accident, title, and mileage data) to facilitate the underwriting and rating of auto insurance policies. Licenses of this technology are available exclusively from Carfax as part of the services it provides to auto insurance carriers.
"With hundreds of insurance clients, Carfax has long been the leader in providing vehicle history data to auto insurers," commented David Lackey, General Manager of the Carfax Banking & Insurance Group. "The breadth and quality of our data sources make a compelling case once an insurer validates the improved pricing accuracy we can provide."
At present, 43 states have approved the use of Carfax vehicle history information for underwriting and/or rating.
Among other things, the data available from Carfax helps insurers identify situations where a vehicle's structural integrity may have been compromised. Analyses with insurers have shown that these vehicles tend to have a higher claim frequency and/or damage severity than other vehicles. For instance, a study by the California Highway Alliance found that in 4% of instances where a vehicle's airbag deployed, the airbag was subsequently repaired incorrectly or with something other than an airbag. Carfax data helps insurers identify such situations using the vast amount of information it has assembled.
Carfax also boasts the largest single database of odometer readings in the U.S. and Canada, helping insurers better assess the number of vehicle miles traveled. Insurers have found that Carfax can typically calculate vehicle annual mileage more than 40% of the time. This allows insurers to more accurately rate their auto policies and/or validate self-reported mileage provided by insureds.
"While auto insurers have historically looked at the type of vehicle being insured, evaluating the specific vehicle on a policy is a truly novel concept," added Mr. Lackey. "These patents further establish Carfax as a market innovator, providing cutting edge services to the insurance industry."
The Carfax Vehicle History Report™ is the industry standard, delivering more insight into a vehicle's history than any other source. Hundreds of insurance companies rely on Carfax as an integral part of their underwriting and rating, claims prioritization, total loss valuations, and SIU investigations.
About Carfax (www.carfax.com)
Carfax has built the most comprehensive vehicle history database ever assembled with over 10 billion records covering virtually all cars, light trucks, and SUVs manufactured in the U.S. since 1981. We provide vehicle data from more than 34,000 data sources, including all state DMVs and many police departments, service facilities, and collision centers. In addition, all vehicle data undergoes rigorous quality assurance testing to improve its accuracy. We also run the data through hundreds of business rules to identify unique Carfax Alerts and Advisories relating to odometer rollbacks, VIN cloning, and other potential problems. Contact us at 800-789-6232 or visit our website at www.CarfaxBIG.com to learn more about specific applications for your business and to take advantage of our discounted corporate rates.