How Your Driving Record Really Affects Your Premiums 

What if you were increasing your own premiums and you did not even know it? You may already know that your driving habits matter, but few people understand the driving record impact on insurance and how it can dramatically change what you pay each month. 

You protect your car with good automobile insurance and pay the premium every month. But have you noticed the prices creeping up over time? There can be many reasons for this, but one of the main ones is your driving history. 

Your driving record’s impact on insurance prices can be dramatic. Unfortunately, far too many drivers do not know how or why their activities behind the wheel are increasing their costs. Wondering how driving history affects rates and what you can do to lower your premiums? Keep reading to find out. 

What Is a Driving Record and Why It Matters 

Your driving record, otherwise known as your Motor Vehicle Report, is a document compiled and maintained by your state DMV. It tracks basic details such as your licensing status and your home address. More importantly, this document also tracks traffic accidents, moving violations, and the frequency of your license being suspended or revoked. 

This matters because your record is one of the most essential factors in determining your insurance premium. Carriers set prices based on how risky they think it will be to insure someone. Suppose you have a history of accidents, tickets, and moving violations. In that case, the carrier will assume you are more likely to file a claim in the future and will adjust your monthly premium accordingly. 

How Insurance Companies Evaluate Your Driving History 

While no two carriers are the same, they generally evaluate your history in the same way. For example, you may see little to no increase in your auto insurance premiums for things like low-level speeding tickets or minor offenses like failing to signal. Conversely, causing traffic accidents, speeding more than 20 miles over the limit, or getting a DUI conviction can lead to significant increases in your monthly rate. 

For some violations, your carrier may cancel your policy altogether. Fortunately, carriers also offer discounts as a safe driver benefit. So if you can consistently avoid major violations, you may be able to get a lower premium each month. 

Key Elements That Affect Your Record (Accidents, Tickets, Violations) 

Your driving record’s impact on insurance is much greater for certain offenses. This includes speeding tickets (especially if you were going 20 miles per hour or more over the limit), accidents where you are at fault, and major moving violations such as driving under the influence. 

Carriers consider all of these offenses when setting your premium. Additionally, violations add points to your license, and the worse the offense, the more points are added. Your insurer is likely to use these points to help calculate your monthly rate because the more points you have, the more dangerous the state thinks you are as a driver. 

Common Driving Infractions and Their Insurance Impact 

All infractions have the possibility of increasing your auto insurance premiums. However, some infractions are going to drive your rates up worse than others. And by knowing more about how driving history affects rates, you can better keep your own monthly payments as low as possible. 

Speeding tickets and at-fault accidents have the biggest driving record impact on insurance, often causing higher premiums for several years after the incident. Below, you will find more information on how to save money each month. 

Speeding Tickets 

The impact of a speeding ticket on insurance often depends on your speed at the time of the catch. For example, a lower speed (especially if this is your first offense) may result in no rate hike whatsoever. Traveling more than 20 miles over the limit, however, may lead to a significant rate hike. Getting a speeding ticket may increase your premium by up to 21 percent, which is the most common example of how driving history affects rates. 

At-Fault Accidents 

The impact of accident history on insurance depends on the type of accident. For example, if you are not at fault, your rate may increase very little or possibly not at all. But if you are at fault for an accident, your rate may increase by as much as 43 percent. 

DUIs and Serious Violations 

As you might expect, DUI insurance consequences are typically very severe. Getting a DUI may increase your rate anywhere from 60 to 85 percent, meaning you will pay nearly double what you paid before. DUIs and other serious violations are some of the primary factors behind increased insurance premium rates; be sure to drive safely to avoid such a rate hike. 

How Insurance Companies Calculate Premiums Based on Driving Records 

When evaluating risk, insurers look at dozens of factors, but few carry as much weight as your driving record impact on insurance. The cleaner your history, the lower your perceived risk, which often translates to more affordable premiums 

There are multiple risk assessment and scoring systems carriers may use. With the proper knowledge, you will be able to debunk common auto insurance myths and start saving. Below, you will learn more about traffic violations and insurance impact, as well as other factors that may raise or lower your monthly rate. 

Risk Assessment and Scoring Systems 

Carriers have multiple ways to assess how risky you are as a driver and adjust your premium accordingly. For example, they may rely on things like your Motor Vehicle Report and how many points you have on your driver’s license. 

But they will also consider your claim history and other risk factors (such as whether you regularly drive through dangerous areas) and use statistical analysis to calculate the likelihood of future risks and claims. In short, the riskier they think you are, the more you will have to pay each month. 

Factors That Can Increase or Decrease Rates 

While traffic violations and insurance rates are closely related, other factors may raise or lower your rates. For example, your premium is affected by factors like your credit history, your home address, your marital status, and even your gender. While you cannot easily control all of these, doing things like improving your credit and moving to a safer area may give you lower rates, which you can then pair with insurance discounts for safe driving to lower further how much you pay. 

Tips to Maintain a Clean Driving Record and Reduce Premiums 

Your driving record’s impact on insurance is ongoing. Therefore, the best way to lower your rates is to maintain a clean record. This will naturally lower your premiums, and paying less each month is one of the most tremendous safe driver benefits. 

Want to lower your rates as fast as possible? Below are a few tips to help you start saving as early as today. 

Defensive Driving Courses 

You can take defensive courses at any time, and they are designed to keep you safer whenever you are on the road. Additionally, completing such a course may lower your premiums because it proves to your insurer that you are safer than other drivers. 

Safe Driving Habits 

Be sure to engage in safe road habits every day. This includes avoiding speeding, driving defensively, maintaining a safe distance, and being extra cautious during rain or other inclement weather. All of this can help you avoid accidents and qualify for a safe driving discount. 

Disputing Errors on Your Record 

Your record has a significant impact on insurance costs, but what if the record is wrong? Contact your carrier or your DMV to discuss the contents of your Motor Vehicle Report. If any facts are in error, be sure to contact the DMV again to dispute them. Once these errors are removed from your record, you can stop overpaying for insurance. 

Start Saving on Car Insurance Today with InsureOne 

Now that you understand your driving record impact on insurance, you can take steps to lower your costs. At InsureOne, we help drivers find personalized coverage that fits their needs and budgets. This includes what causes your rates to go up and how to avoid them. But do you know who can offer you the most competitive rates regardless of your record? 

Here at InsureOne, we specialize in protecting drivers who are looking for lower premiums. When you are ready to give yourself uncompromising protection at an unbelievable price, get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you. 

FAQs 

How Long Does a Traffic Violation Stay on My Record? 

Most minor violations stay on your record for only three to five years, and points may come off your license in as little as three years. Major violations may remain on your record for 10 years. This is one of the most considerable DUI insurance consequences: paying increased rates for a decade or longer. 

Can Accidents I Did Not Cause Affect My Premiums? 

Accidents you did not cause may still increase your premiums. However, the increase will be far less than if you were in an at-fault accident. 

Do All Tickets Affect Insurance Rates Equally? 

No, because some moving violations are worse than others. For example, getting ticketed for speeding more than 20 miles per hour over the limit will increase your rate much more than getting ticketed for speeding only five miles over the limit. 

How Do Insurance Companies Track My Driving History? 

Carriers typically track your history through your Motor Vehicle Report, as well as using CLUE reports, which track claims (including claims where you are not at fault) for seven years. 

Can Safe Driving Discounts Offset Past Violations? 

While safe driving discounts can offset past violations, it is not guaranteed. For example, if reckless speeding tickets drove insurance costs up very high, it may be difficult for a single discount to offset that. But you can get further savings by applying for other discounts, bundling your policies, and potentially switching to a carrier like InsureOne that offers you better rates.