Introduction
Your driving history is important in determining the cost of your auto insurance. Insurance providers look at your past accidents, traffic tickets, and claims to determine your level of risk as a driver. Having a clean record can result in lower premiums, but a ticket or accident history can drive up your costs significantly. In this article, we’ll describe how your driving record influences your auto insurance premiums and how you can reduce your expenses.
- What Insurers Look for in Your Driving Record
When calculating your auto insurance premiums, insurers consider a number of factors surrounding your driving history, such as:
Traffic Tickets – Speeding tickets, reckless driving, and other moving penalties.
Accidents – Being at fault for an accident can increase your premiums substantially.
Claims History – Repeated claims indicate a greater risk to insurers.
DUI/DWI Offenses – Driving while intoxicated can produce the largest rate increases.
License Suspensions – A suspended license demonstrates serious traffic infractions.
- How Traffic Violations Affect Your Insurance Rates
Not even minor infractions will go without increasing your insurance costs. The more grievous the offense, the larger the hit to your rates.
Examples of Traffic Violations and Their Effects
Minor Offenses (Speeding 1-10 mph over the speed limit, running a stop sign)
Can add 10-20% to your premium.
Moderate Offenses (Speeding 11-20 mph over the limit, failure to yield)
Can cause a 20-40% premium hike.
Severe Offenses (Reckless driving, running a red light, aggressive driving)
Can cause premiums to increase by 50% or more.
- The Impact of At-Fault Crashes on Insurance Premiums
If you are at fault for an accident, your premiums will go up at your insurance company. The rate of increase varies with:
Severity of the accident – Greater damage increases premium increases.
Cost of the claim – Costly claims lead to a steep hike in premiums.
Your claims history – Frequent claims over a short time can classify you as a high-risk driver.
How Much Can an At-Fault Accident Increase Your Rates?
Small accident ($1,000 damages) – 20-30% increase.
Medium accident ($5,000-$10,000 damages) – 30-50% increase.
Bad accident (injuries or a complete loss of a vehicle) – 50% or more increase.
Certain insurance companies sell accident forgiveness, which keeps your initial accident from raising your premiums. Find out if your insurer offers this coverage. - The Effect of DUI/DWI on Auto Insurance Premiums
A conviction for DUI (Driving Under the Influence) or DWI (Driving While Intoxicated) is one of the most severe crimes and can make your insurance premiums skyrocket. At times, insurers can deny you coverage or ask you to obtain SR-22 insurance, which is a document showing that you possess the minimum coverage.
How Much Does a DUI Affect Your Rates?
A DUI doubles or triples your insurance costs.
It remains on your record between 3-10 years, depending on where you live.
Your policy might even be canceled by some insurance providers.
If you do get a DUI, the best option is to take a defensive driving course and keep your record clean from there on out.
- How Long Do Violations Remain on Your Driving Record
The duration that an offense influences your insurance varies by state statute and severity of violation.
Normal Periods Before Your Rates Change Based on an Offense:
Traffic citations for minor offenses – 3 years.
Fault-based collisions – 3-5 years.
Convictions for DUI/DWI – 5-10 years.
License suspension – 3-5 years.
Thereafter, rates should become less expensive so long as your driving record stays clean.
- How to Keep Your Record Clean and Pay Less for Insurance
If you do have a bad driving history, there are measures you can take to lower your insurance costs over time:
Drive Carefully – Don’t speed, drive erratically, and other offenses.
Take a Defensive Driving Class – Some companies have discounts for taking an approved defensive driving class.
Select Usage-Based Insurance – Some companies provide policies that monitor your driving and offer lower premiums for safe driving.
Minimize Claims – File claims for only serious incidents to prevent yourself from being termed a high-risk driver.
Shop Around for Insurance – Some companies charge more for violations than others, so compare quotes to discover improved rates.
Conclusion
Your driving history is a key factor in how much you pay for auto insurance. A good record can earn you lower rates, but accidents, traffic tickets, and DUIs can drive your costs up. By driving safely, taking advantage of discounts, and shopping around for insurance companies, you can keep your costs down and have affordable coverage.