How one auto insurer used registration data to validate VINs and flag premium leakage

On average, about 5 percent of all vehicle identification numbers (VINs) in auto insurers’ portfolios are missing or invalid, which can result in exposure to mispriced risk in multiple ways.1

One large national preferred auto insurer sought to identify misstated VINs and thereby improve the overall data accuracy of its book. Finding those misstated VINs would help refine the insurer’s symbol-based rating and pricing—and address premium leakage related to faulty vehicle registration data.

The Challenge Of Auto Insurance Premium Leakage

Uncovering and correcting errors

The insurer uncovered a number of invalid VINs in its book while exploring ISO’s underwriting solutions. It was able to correct the vehicle data by leveraging information already available in Verisk’s Vehicle Registration Reports solution, including vehicle owners, license plates, and partial VINs.

A number of underlying causes for the discrepancies emerged, from an inability to account for 17-digit VINs to simple human error. Analysis of thousands of VINs, vehicles, policies, and households ultimately supported two successful rounds of VIN corrections.

Cleansing VINs and identifying potential hidden costs

The insurer succeeded in correcting 78 percent of the invalid VINs in its book and was able to adjust pricing to align with the more detailed vehicle information gained from full 17-digit VINs. VIN Cleansing also helped provide a more accurate view of the customers and vehicles in question by pointing to more possible sources of premium leakage across commercial use, title information, and potential hidden vehicles.

Additional use cases for VIN Cleansing include identification of garaging-related premium leakage and more precise rating of safety features. VIN Cleansing can help uncover a partial VIN’s full 17 digits to ultimately identify factory-installed advanced driver-assistance systems (ADAS). In addition, Vehicle Registration Reports information can help identify and correct policies that are rated in the wrong state, which can support greater compliance with state liability reporting requirements.

Read the full case study, “Overcoming the Hidden Costs of Incorrect VINs,” to learn more about VIN cleansing with Vehicle Registration Reports.

  1. The Challenge of Auto Insurance Premium Leakage, Verisk, February 2017,
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Ron Wiest

Ron Wiest is a product manager for ISO Personal Lines. He can be reached at

Jennifer Graham

Jennifer Graham is a product manager for ISO Personal Lines. She can be reached at

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