How Does Your Driving Record Affect Your Auto Insurance?

Your driving record is one of the most important factors in determining your auto insurance premium. The better your driving record, the lesser is the perceived risk of an accident and the lower the premium you have to pay. Insurance companies usually look at 3-5 years of your driving history to determine your premium.

Your insurance company obtains your driving record from the Motor vehicle Administration Department from the states of your recent residency. States typically issue points for violations and accidents. Citations for reckless driving or speeding tickets can increase your auto insurance premium. When you are at fault in an accident, your premium will go up. If you have been pulled over for use of alcohol or drugs, again your premium will go up.

Past claims, even when you were not at fault, could affect your premium. For instance, if a deer collided against your car and caused damages for which you claimed money from your insurer, you could see an increase in your premium when you renew your policy.

Your record is revisited every time you renew your policy and your premium is adjusted to reflect your most recent driving history. So one violation or accident may increase your premium in the short run but may not affect it much in the long term. But frequent incidents will raise a red flag and you may be hit by huge increases.

If you have a spotless driving history, you will typically qualify for "good-driver" discounts on your insurance policy. But any violation could disqualify you for future discounts. Depending on the rules in your state, you may be able to attend a traffic school to remove certain minor violations from your driving record.