How Does My Driving Record Affect My Car Insurance Premiums?


In order to legally drive a vehicle on the roads of the United States of America, the vehicle being operated needs to have the appropriate auto insurance applied to it. Drivers are required to insure their vehicles in order to comply with the rules and regulations established by the federal government. Persons who have auto insurance will be required to pay car insurance premiums.

This is the amount necessitated by the insurance company which needs to be paid by insurance policy holders in order to cover the cost of the individual’s coverage. Different policy holders will often pay different amounts, or premiums, either monthly, semi-annually or annually. Since there can be such a difference between one person’s premiums and the next, many people are interested in learning why there are such variations in price. Primarily, what insurance companies look for in determining a person’s car insurance premium is their driving record.

A person’s insurance premium is a direct reflection of the information that is found within the person’s driving record. Insurance companies look at the last three to five years of a person’s driving record in order to determine how much of a liability the driver would represent to the insurance company. The reason that insurance companies look at these driving records is because individuals who have had tickets or accidents are more likely to have tickets or accidents in the future, as compared to drivers that have not been in any accidents or acquired any citations from law enforcement officials. Insurance companies order your driving record from the Department of Motor Vehicles from your state of residency, in addition to any other states in which you have been licensed to drive. The specific number of accidents and citations found in your file will affect the price of your car insurance premium.

Most states issue points for individuals who are in violation of the various driving rules that are put in place and sometimes for those who have gotten into auto accidents. Insurance companies often use the point system and the number of points in a driver’s record in order to determine their auto insurance premium(s). In order to compete with other insurance companies, many insurance providers will try to offer the lowest insurance premium while still protecting their own company from any liability the driver may cause the insurance company.

Premiums can be established initially when the driver adopts a specific company’s policy, but they can be changed over time if the driver gets into an accident or if they receive a ticket. Specific changes to a driver’s premium as a result of accidents or citations will vary from company to company. If you have a question about how your specific policy will change, it will probably be easiest and most convenient for you to get individualized answers regarding your policy, and a potential premium change, by getting in contact with your insurance company. If you have your account number, you will be able to contact an insurance agent who can give you the information that you are looking for when it comes to your auto insurance account.