How Do Driving Records Affect My Car Insurance Premium?

By Sharon Gibson Posted in Car Insurance News

Factors To Keep In Mind

There are many factors affecting insurance rates. One significant factor in determining insurance premium costs is your driving record. What a driving record illustrates to an insurer is what type of driver they are insuring. Is the driver often pulled over for speeding or reckless driving? Has the driver ever been convicted of DUI (driving under the influence of drugs or alcohol)? The answers to these questions help identify your general risk(s) to insurance companies. Your driving record is important for the insurer to identify that risk. The higher the risk factor, the more the insurance premium will cost.

Maintaining A Good Record

Having an auto accident or a moving violation on your driving record such as speeding tickets, DUI and/or reckless driving puts you in a higher risk category for accidents, which ultimately means more money out of your pocket for premiums. Many insurance companies will penalize the insured for as many five years from the date in which the accident happened. However, one thing to keep in mind, if your driving record improves, more than likely, your premiums will eventually get lower.

Typically, insurance companies look back three to five years on a person’s driving record to determine risk factors and premium costs. As an insurer views risk is, if a driver has violations on their record three to five years, they are more than likely to have violations such as accidents or tickets in the future.

Insurance companies will request driving records from the Department of Motor Vehicles (DMW) from the state of the insured’s residency as well as any additional states in which the driver has been licensed to drive. Most states issue points for drivers who violate various driving rules and regulations.

Insurance premiums can be determined initially when the insured retains a specific insurance company’s policy, but will change if the driver receives a violation or gets into an accident and files a claim. So, it is important a driver pays close attention to how he or she maintains the integrity of their driving record.

Related posts:

  1. When Do Insurance Companies Check Driving Records?
  2. Which Car Insurance Companies Ignore Speeding?
  3. How Can Points Affect My Car Insurance Rates?
  4. How Do Speeding Tickets Affect My Car Insurance?
  5. Which Insurance Companies Do Not Look At Your Driving Record?

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