insurance

How Does My Driving Record Impact My Insurance Rates?

Key Takeaways:

  • Different driving records can be utilised for different things, such court appearances or background checks.
  • Driving records may contain information about past small and significant infractions, such as speeding tickets, collisions, and/or arrests for more serious offences like drunk driving.
  • Although accidents and other traffic infractions can gradually erase your driving history, it might still have an impact on the amount you pay for auto insurance.

One major factor influencing your auto insurance premium is your driving record. A clean driving record typically translates into cheaper insurance. On the other hand, you run a larger risk of being denied insurance and will probably end up paying more if you have a history of accidents or major moving offences.

However, how can you find out what may be affecting your premiums based on the information on your driving record? Learn how to verify and understand the information on your driving record if you intend to shop for new insurance.

What does your driving record consist of?

Numerous details about your driving past may be found in your driving record. The laws in your state may determine what is included and how long that information is kept on your driving record. Usually, your driving history consists of:

  • Your address and name
  • Driver’s licence number
  • Status of licence (i.e., active, suspended, expired, etc.)
  • Convictions for offences involving motor vehicles
  • Information on accidents
  • Driver control actions, like not stopping completely or yielding

However, any outstanding charges you may have for moving offences would not appear on your record.

It’s also critical to remember that you may have many kinds of driving records.

  • Residential history record: This document contains a history of your residential driving.
  • Certified true copies: A complete driving record created for official use by state and federal agencies, as well as courts, is a certified true copy.
  • Complete extract copies: Although it is intended for the driver’s personal use, employers and insurance firms may potentially receive access to this driving record.
  • Limited extract copies: An additional limited copy of your driving record spanning the last three years can be used by insurance firms to determine premiums or by employers as part of a background investigation.

How can you check your driving record?

Depending on the state you live in, there may be differences in the procedure for reviewing your driving record. However, typically, it entails:

  • Choosing the kind of driving record you want to obtain
  • Filling out the relevant application
  • supplying identity documentation
  • covering any relevant fees

Get in touch with your state’s Department of Public Safety or Department of Motor Vehicles to see what steps are necessary to receive a driving record. While some states might need you to submit your application in person, many states let you request a driving record online.

What role does your driving record play in impacting your insurance rates?

  • The insurance firm performs a risk assessment as part of its underwriting procedure when a policy is applied for.
  • Determining the applicant’s classification—low risk vs high risk, for example—is a part of this assessment, or selection process.
  • Examining the applicant’s driving record is the best approach to judge them; this usually includes at-fault and not-at-fault accidents as well as moving violations.
  • Based on the frequency and severity of recent traffic infractions and incidents, the insurance company can determine the insurance risk level.
  • Your auto insurance provider obtains a summary of your most recent fines, accidents, and convictions; nevertheless, it is not permitted to obtain your whole motor vehicle record (MVR).
  • Your MVR’s lookback time varies depending on the state and insurance provider. This time frame typically lasts three to five years, but it can go much longer.
  • The motorist is more likely than other drivers to experience similar issues in the future if there are multiple accidents or moving violations, which increases the insurer’s liability. They will most likely file numerous, expensive insurance claims as well.
  • Because of this, the insurance provider may decide the motorist is too dangerous to insure, or it may raise the premium to offset the likelihood that it will have to pay claims.
What does this mean for you?

Your vehicle insurance prices are heavily influenced by your driving record. Insurance companies evaluate your driving risk based on past driving incidents, such as moving violations, crashes, and accidents. Higher premiums are probably going to follow from a bad driving history with several infractions or accidents.

 

Leave a Reply

Your email address will not be published. Required fields are marked *