How A Driving Record Can Affect Your Car Insurance Quotes

When an insurance company issues any insurance policy, it first determines how much of a risk the applicant poses for cashing in on that policy. This goes for all types of insurance including homeowners insurance , health insurance , life insurance and definitely auto insurance . In order to calculate your risk potential when you apply for car insurance, companies may factor in a number of different indicators including your credit history, age, gender, what type of car you drive and how many miles you drive each year. The most important indictor, however, is usually your driving record.

The Department of Motor Vehicles (DMV) of the state you are licensed in keeps your driving record. Among other things, it tracks of all of the accidents, moving violations and vehicular criminal convictions you’ve had. Most states use a points system to quantify the infractions on your driving record, but different states have different laws for how many points each infraction is awarded and how long those infractions stay on your record. Likewise, different auto insurance companies use different methods to assess an applicant’s driving record.

When you apply for a car insurance policy, most insurance companies will ask you questions about your driving history. They will not take your word for it, however; they will order your driving record from the DMV to see for themselves. If you have been licensed in multiple states, most insurers will get your driving record from each state. They will use this information to determine if you meet the minimum standards for insurability according to their company policy, and how much your car insurance premium will cost if you do. If you have a lot of infractions on your record, you will likely be charged a higher premium than the average driver. On the other hand, if you have few or no infractions on your driving record, you may be eligible for a discount on your premium through a “safe driver” program.

Periodically, throughout the tenure of your car insurance policy, your driving record may be reassessed. This is likely to happen whenever you change the amount of coverage on your policy, change the vehicle being covered, add another vehicle to the policy, add another driver to the policy or when the policy needs to be renewed. At this time, companies check to see if any additional infractions have been added to your driving record that will affect your car insurance premium. If so, surcharges may be added to your premium, which will drive your rate up.

The best way to save on your car insurance premium is to keep a good driving record. If you do have an at-fault accident or get cited for a moving violation, however, you may not be able to avoid paying more. In some cases, any “safe driver” discount may be negated or a surcharge may be applied. Some companies will forgive minor infractions, first-time accidents and other violations. Some states also have laws to regulate when an insurer can raise car insurance premiums. It’s a good idea to find out what will happen to your premiums if you do have a driving infraction when you first apply for the policy.