Your driving record significantly determines the cost of your auto insurance. The insurance companies use your driving history to assess your risk as a policyholder and the premium you will pay. You may receive lower insurance rates if you have a clean driving record, while those with traffic violations, accidents, or other infractions on their driving records could be assessed higher premiums. Let's learn how your driving record affects your insurance rate and what you can do to keep it as affordable as possible.
1. How Insurance Providers Use Your Driving Record
Your driving record is an indication of the kind of driver you are and, more importantly, how responsible you are when you drive. An insurance company can tell how probable you would be to make a claim by looking at your driving record. Key factors they consider include:
- Accidents: At-fault accidents show greater risk, and rates rise with such a record.
- Traffic Violations: Speeding tickets, reckless driving, and other related infractions are indicative of the unsafe behavior of driving that raises the chances of higher premiums.
- DUI/DWI Convictions: Driving under the influence is a serious offense that can often lead to the greatest rate increases, or in some cases, cancellation of policies altogether.
- How Long You've Kept a Clean Record: The longer you keep a clean record, the bigger the discounts or lower the rates will be.
2. How Much a Clean Driving Record Affects Your Rate
A clean driving record perhaps gives you the best way to get insurance at an affordable rate. Most companies provide a safe driver discount that saves a decent amount on premiums. Some even offer an accident forgiveness plan, in which a minor incident isn't going to send premiums into the high stratosphere.
3. Infractions for Bad Driving Record
If your record of driving bears violations or any incidents, expect to pay more on account of them. Severe cases land you with a label of "high risk" driver where options are limited to specialized companies and with rates skyrocketing. Some common consequences of bad driving include:
- Higher rates for a longer period of time. For example, accidents and/or violations impact the rates up to 3-5 years.
- Not being able to buy regular insurance; must purchase nonstandard insurance.
- Loss of some discounts, such as those for being a safe driver or not having filed claims.
4. Improve Your Driving Record and Lower Rates
While a tarnished driving record can increase your insurance rates, not all is lost; you can take pains to improve your driving history and thus lower your policy rates:
- Practice Safe Driving: Obey traffic laws at all times and stay alert during driving to avoid any future violations or accidents.
- Take Defensive Driving Course: Many insurance companies give this course for a rate discount.
- Monitor your record: Occasional checks will show that your driving record is accurate and that items that have been resolved are taken off.
- Ask about discounts: You may want to inquire into safe driver programs, usage-based insurance, or bundling options for additional discounts.
5. The Role Played by State Laws and Regulations
It has to be remembered that the weight of one's driving record will relate to the particular state and insurer. Some states limit how far back insurers can review your driving history, while others have additional restrictions regarding how much your rate can be surcharged.
Closing Remarks
Your driving history represents the most influential of factors affecting the premium rates of auto insurance policies. Keeping a clean driving record is for safety on the roads while managing to be able to save money in the same process. Knowing how insurers review a driver's history and making conscious steps toward improving your driving history will go a long way in securing more affordable premiums with a clear conscience.