How do car insurance companies check your background?

Car insurance companies hate risk. The riskier the driver, the more likely it is that these companies will have to pay claims. So before they insure you, they check your driving history, credit, and claims report. They normally use a third-party company to run the reports for them, such as LexisNexis. These reports help them to decide if you are a good risk or not, and what your insurance rate should be.