When Do Insurance Companies Check Driving Records?

By Sharon Gibson Posted in Car Insurance News

When insurance companies provide insurance coverage to a motorist and collect premiums, ideally for the company that policyholder will make as few claims as possible. Although the insurance company will lose money on some clients because they will make multiple high payout claims, there will be many more policy holders that pay their premiums without collecting large amounts of money from the insurer. This is one of the ways that car insurance companies make money. To calculate how high of an insurance premium the company should charge an individual policyholder the insurer determines how much of a risk that driver is. If a driver is considered a high risk then they are likely to file multiple claims with the insurance company, and therefore will have to pay a significantly higher premium.

Insurance Companies Can Check Your Driving Record At Any Time

The most common way for an insurance company to determine how risky of an investment an individual driver is is to look at that persons driving history. Every time you receive a traffic violation or are involved in an accident the state government makes not of it on your driving record. An insurance company has the ability to check your driving record at any time.

There Are Several Times That Insurance Companies Will Commonly Check Your Driving Record

Although an insurer can check your driving history whenever they want, there are some situations that you can guarantee they will look up your record. When you fist apply for a new policy the insurance company will  check your record to help determine what your insurance premium will be and if you are even insurable. If you change something on your policy like adding or removing drivers your history will be looked up. Your insurer will also check if you change the insured vehicle or add another one to the policy. During your policy renewal period, and every two renewal cycles are also common times for the insurer to check you driving record. Although not always typical, some insurance companies will randomly check their client’s records as well.

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  3. How Does My Credit History Affect My Car Insurance Coverage Rate?
  4. Which Car Insurance Companies Ignore Speeding?
  5. How Can Points Affect My Car Insurance Rates?

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