State Farm Auto Insurance Practice Test

Which report is the most expensive to obtain?

1. Loss History Report (LHR)

2. Credit History Report (CHR)

3. MVR data

4. Previous Insurer Report (PIR)

The correct answer is: MVR data

The Motor Vehicle Record (MVR) data is typically the most expensive to obtain among the listed options. This report is crucial for insurance companies as it contains comprehensive information about an individual's driving history, such as traffic violations, accidents, and license status. The complexity and the value of this information contribute to its higher cost. In contrast, the other reports, like the Loss History Report, Credit History Report, and Previous Insurer Report, although useful, generally do not carry the same level of financial implications or sensitivity regarding driving behaviors and safety records, which can significantly impact insurance premiums and risk assessment. Consequently, MVR data is considered a more costly investment for insurers seeking to evaluate risk effectively.