When you’re shopping around for car insurance, you’ve probably noticed that your driving record plays a major role in determining how much you pay for your premiums. But you may still be wondering how exactly your driving history impacts your insurance quote. It’s more than just a simple matter of how many accidents or traffic tickets you’ve had. Insurers look at your driving record as a reflection of how risky you might be on the road. Essentially, it helps them predict the likelihood that you’ll file a claim. The better your record, the less of a risk you are, and the lower your premiums will likely be.
What Does Your Driving Record Include?
Your driving record includes a history of your driving behavior, including things like:
- Accidents: Whether you were at fault or not.
- Traffic violations: Speeding tickets, running red lights, or other infractions.
- License suspensions: If you’ve ever had your license suspended or revoked for any reason.
- DUI/DWI convictions: Driving under the influence or impaired driving.
- Driving history: The number of years you’ve been a licensed driver.
All of this information is kept by your state’s Department of Motor Vehicles (DMV) and can be accessed by auto insurers to help them gauge the level of risk you present. While certain things like a clean driving record may help reduce your premiums, it’s important to know how each factor specifically affects your auto insurance rates.
How Do Insurers Use Your Driving Record?
Insurers are in the business of risk assessment. Simply put, they want to know how likely you are to get into an accident, cause damage, or file a claim. The more incidents or violations you’ve had, the higher your perceived risk, which can lead to higher premiums.
Here’s a breakdown of how certain driving record factors are viewed by insurers:
- Accidents and Claims: If you’ve been involved in an accident, especially one where you were at fault, insurers typically see you as a higher-risk driver. This is because the more accidents you have, the more likely you are to get into another one. If you’ve made multiple claims, your insurer might see you as a frequent risk and raise your premiums accordingly.
- Traffic Violations: Things like speeding tickets or running red lights are considered violations that can increase your insurance rates. The severity and frequency of the violations matter—multiple tickets in a short period will likely result in higher premiums. Speeding over 20 mph or being caught running a red light can increase your rate more significantly than minor infractions like parking tickets or improper lane changes.
- DUI/DWI: Driving under the influence of alcohol or drugs is a major red flag for auto insurers. A DUI conviction can lead to a significant hike in your premiums. In fact, some insurers might even refuse to cover you if you’ve had a DUI in the last few years. A DWI conviction often stays on your driving record for a long time and can cause long-term financial consequences in the form of higher insurance rates.
- License Suspensions: If your license has been suspended, whether due to too many traffic violations or driving without insurance, this will raise a red flag for insurers. It typically shows poor driving behavior and an inability to follow laws, which means a higher likelihood of future accidents or claims. As a result, your premiums could be much higher or your insurance options limited.
- The Length of Your Driving Record: The longer you’ve been driving without incidents, the better. Insurers like to see drivers with a long history of safe driving. If you’ve been driving for decades without a single ticket, you’re likely to pay lower premiums than someone who’s been driving for just a few years, even if the latter driver has a clean record.
How Does a Clean Driving Record Affect Your Premiums?
If you’ve been driving for years without any incidents, your clean driving record will likely result in lower auto insurance premiums. Insurers will consider you a low-risk driver and, as a result, reward you with a discount. In fact, many insurers offer discounts to drivers who maintain a clean record over time. These discounts can be as high as 20% to 30%, depending on the insurer and how long you’ve been accident-free.
Furthermore, a clean record shows that you’re responsible, careful, and less likely to file a claim, all of which help keep your premiums low. Safe drivers are considered less likely to cause accidents or need costly repairs, which makes them a lower-risk customer for the insurer.
What Happens if You Have a Few Marks on Your Driving Record?
If your driving record isn’t perfect, don’t worry—it’s not the end of the world. While accidents, tickets, and violations can increase your premiums, many insurers offer programs to help lower your rates over time. Here are a few things that can help:
- Defensive Driving Courses: Some insurers will reduce your premiums if you take a defensive driving course. These courses teach you how to avoid accidents and handle emergency situations, which can improve your driving skills and show insurers that you’re committed to being a safer driver.
- Accident Forgiveness: If you’re a longtime customer with a clean record, some insurers offer accident forgiveness programs. This means they won’t increase your premiums after your first at-fault accident. However, you usually need to have been with the company for a certain number of years to qualify.
- Time Helps: As time passes, the impact of a past accident or traffic violation can fade. For example, a speeding ticket may only affect your rates for a few years before it no longer appears on your record. After a few years, your premiums may start to decrease, assuming you haven’t had any additional violations.
- Shop Around for Better Rates: Different insurers weigh driving records differently. If one insurer hikes your rates because of a past violation or accident, another may not be as strict. It’s always worth shopping around to see if you can find a more favorable quote.
What if You Have a Serious Violation on Your Record?
If you’ve had a serious violation, like a DUI or multiple accidents, your options may be more limited. Insurance companies may view you as a higher risk and either raise your premiums significantly or refuse to provide coverage altogether. However, all is not lost. High-risk drivers can still find insurance through specialized providers who work with drivers who have a checkered history.
These companies often provide non-standard auto insurance for those who have serious violations on their record, though the premiums will be much higher. In some cases, you might be required to pay higher deductibles or carry a special type of insurance, such as SR-22 insurance, which is designed for high-risk drivers.
How to Keep Your Driving Record Clean Moving Forward
If you want to maintain a low premium, keeping your driving record clean is key. Here are some tips to ensure your driving record stays spotless:
- Drive Defensively: Always be aware of your surroundings and anticipate what other drivers are going to do. Avoid aggressive driving, and keep a safe distance from other vehicles.
- Obey Traffic Laws: This seems obvious, but it’s essential. Obey speed limits, stop at red lights, and always wear your seatbelt. Staying within the rules helps prevent violations and accidents.
- Avoid Distractions: Texting while driving, eating, or fiddling with your radio can increase the likelihood of accidents. Keep distractions to a minimum and focus on the road.
- Maintain Your Vehicle: A well-maintained vehicle is less likely to break down or cause an accident. Regularly check your tires, brakes, and lights to ensure everything is working properly.
- Take Driving Courses: If you’ve had an infraction, consider taking a driving course to refresh your skills and potentially lower your premiums.
Ultimately, maintaining a good driving record is one of the most effective ways to reduce your auto insurance costs. If you keep your record clean and show that you’re a responsible driver, you’ll likely enjoy lower premiums and have access to a broader range of insurance options.