Insurance companies look at the driving record when determining auto insurance rates. A good driving record can help you keep your auto insurance premiums low, but a bad one — with accidents and traffic violations on record — can raise your cost by a lot. Getting to know how your driving record affects your automobile insurance price will provide you with information concerning your driving activities and would save you cash on your insurance rate. This article looks at the connection between your driving record and rates for auto insurance and gives insights and tips on keeping your rates affordable.
Understanding the part played by driving records in insurance rating.
Driving records are a frequent metric on which insurance companies use to assess the risk involved with insuring a driver. The premise is simple: the more cleaner the driving record, the less risky you are to insure and vice versa. Here’s how different elements of your driving record can impact your insurance rates:
1. Traffic Violations
The good news is in most states, minor infractions like a speeding ticket or running a stop sign don’t stay on your driving record that long — only about three years. Personalized ticketing violation rules aren’t written in stone; you may not get your rates increased much for one minor violation, but several tickets can move that needle up. Even more severe violations, like DUI/DWI offenses, can send your insurance costs skyrocketing, and may stay on your record for a lot longer.
2. At-Fault Accidents
This hurts your insurance rates, if you are found at fault in a car accident. You may be seen by insurers as a high risk driver and the premiums will increase. How much your rates increased will depend on the severity of the accident and the cost of claims filed as a result of the accident.
3. When it comes to No Fault Accidents and Comprehensive Claims, sometimes accidents on your own property are covered.
Some policies will even allow a claim even if you are not at fault, which can hurt your rates — depending on the insurer and the policy’s specifics. Furthermore, you may also be influenced by non collision damages (for instance, from weather or theft), referred to as comprehensive claims, but typically less than at fault accidents.
How Long Does a Violation Affect My Insurance Rates?
How long after a violation you fall under the infraction can affect your insurance rates depends on the seriousness of the offense as well as the insurance company's policy. Minor infractions usually affect your rates for three years, but major violations, like a DUI, could drag out the impact for five years or longer. Some states and insurance companies will, in fact, differ on assessment periods.
How to Lessen the Effect of a Bad Driving Record
If your driving record is less than stellar, there are several strategies you can employ to help mitigate the impact on your insurance rates:
1. Take a course and acquire a license for Defensive Driving.
Some insurance companies will even offer a discount to drivers who can prove having accomplished a certain approved defensive driving course. In addition to the potential discount, taking these courses can also give your driving some much needed improvement, lowering your chances of being personally affected by another violation or accident.
2. Improve Your Driving Habits
The most direct way for you to positively affect your insurance rates is to improve your driving habits. Obeying traffic law. Not being distracted while driving. Defensive driving.
3. Shop Around for Better Rates
Because insurance companies weigh each of these factors differently, it pays to shop around. Getting quotes from multiple insurers will likely bring you the best rate, even if you have marks on your driving record. There are some companies who specialize in high risk drivers that may offer competitive rates for those with a spotty driving history.
4. Think of Raising Your Deductible.
Your monthly premium can be reduced by choosing a higher deductible. But pick a deductible amount that you can afford to continue paying from your pocket if there is ever a claim made.
5. However, make sure to regularly review and update your policy.
Points will fall off of your driving record and infractions will expire so your record may get better over time. Be sure to check in regularly with your insurer to make sure you get a good deal on a policy (and that you can qualify for lower rates on improved driving record).
Reasons You Should Care to Keep Your Driving Record Free From Incidents.
If you keep a clean driving record, you will not only keep your insurance rates down, but having a clean driving record will also make you and others on the road safer. Having a clean record means that drivers are far less likely to get involved in accidents and as a result far less likely to make claims or face severe financial or legal consequences.
Conclusion
How you drive has an effect on your auto insurance rate. Knowing how different parts of your record affect your premiums can then help you take proactive steps to guide and improve your driving behavior, and hopefully end up with cheaper insurance costs. The best way to make sure you get affordable insurance rates is to drive safely and responsibly.
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