Insurance companies base their entire rating system on the concept of risk. Whether it be insurance for a house or a valuable piece of jewelry, the carrier is going to charge you according to the probability of a loss occurring. This is especially true for auto insurance. Of all the factors that go into calculating the amount that a motorist will pay for car insurance, their driving record plays a huge role in the rating formula.

Let’s explore some frequently asked questions about driving records and how they affect auto insurance rates:

Why Insurance Companies Look At Driving Records  

As stated above, determining insurance rates is all about risk. If a motorist has a clean driving record, statistics have proven that they are a very low risk for causing an accident. A person with many speeding tickets or worse (like a DUI) has a much higher chance of costing an insurance company a significant amount of money in claims payments.

How Often Will My Auto Carrier Check My Driving History?

It depends on the underwriting policy of the insurance company, but a good rule of thumb industry wide is at least once per year. When a driver first applies for coverage, the insurer will pull their driving record to see if they qualify for approval. At policy renewal time, an assessment will be made again about the risk factors involved in covering that person.

Will Tickets Or An Accident Raise My Insurance Rates?

Fortunately, the answer to this question is not an automatic “yes”. Whether a motorist’s rates go up after having an accident or being ticketed will depend on the length of time the person has been with the insurance company, the nature of the incidents and the amount of claim dollars that have been paid out. However, chances are high that eventually, negative marks on a driving record will cause a person’s rates to increase.

How Long Will Accidents Or Moving Violations Show Up On My History?

In most cases, a regular moving violation will stay on a person’s driving record for 3-5 years. More serious charges like DUI or reckless driving can remain for many decades. No matter how you slice it, risking a ticket or an accident because you are in a hurry just is not worth it in the long run. Sometimes a motorist will be offered court supervision or to participate in a defensive driving course in exchange for negative information not being posted to their official record.

So How Will These Factors Affect Your Auto Insurance???

When an insurance company agrees to issue a policy to a driver, the carrier is assuming a great amount of risk as it relates to the potential of paying out significant dollars in claims. If a motorist is statistically a low risk for tickets or accidents, their insurance rates will be much lower than other people who have a history of poor driving habits. It is important for motorists to remember that their daily decisions behind the wheel of an automobile can have a long-lasting impact on the amount that they will pay for auto coverage for years to come.

For more information on how your driving record might affect your insurance rates, visit Insure on the Spot today. We offer a free auto insurance quotes in just 2 minuites. If you are looking for SR22 Insurance or Auto Insurance in the Chicagoland area, get in contact with us!