How A Driving Record Can Affect Your Car Insurance Quotes
Car insurance quotes are determined after considering different factors like age, gender, make of your car, number of miles you drive a year, credit history and more. However there is another factor which plays a fundamental role in determining your risk potential, i.e. your driving record. The insurance company determines how much of a risk the applicant poses for cashing in on the policy depending on the past driving record. Thus a neat and clean driving record helps in reducing your auto insurance substantially.
Your driving record details are maintained by the Department of Motor Vehicles of your state. A detailed track of all car accidents, moving violations, vehicular criminal convictions and all other relevant information is maintained by them. Generally, a point system is maintained to quantify the infractions on your driving record. However the points allocated to each offense may differ from state to state. Another integral fact to consider is how long these infractions are reflected on the record. Similarly, different insurers apply varied methods to assess the applicants driving record.
When you are asked to state the details of your driving record it is a mere formality and testing of your credibility. There is no point in lying or exaggerating about your driving record because the insurer will get all the details of your driving history from the state DMV. If you are a multiple license holder, then also your records from each state will be verified. This information is made use of to determine if you satisfy the minimum standards for insurability. In line with the company policy, your insurance amount would then be assessed. If you have a clean and clear driving record you will be entitled to discounts under the safe driver programs. However if there are too many infractions highlighted on your record you will feel a higher pocket pinch, thanks to a higher premium amount than the average.
Whenever you go for alterations in your policy your driving records will be reassessed. If you change your coverage, add another driver to the policy, change the car, change you residence or any other change in your policy will lead to a new analysis of your driving past. Any new infractions during the tenure will automatically lead to a higher premium. Surcharges may be added to the policy when you opt for renewal, if you happen to have new infractions in your record. On the other hand, if you are lucky you might manage to bring about a slight reduction in the plan if previous infractions have faded out and no new ones have been added between the tenure.
The bottom line is that a good driving record is a sure shot way of limiting your car insurance premiums. At fault accident or moving violations against you is a sure shot way to increase premiums. So the choice is yours! Also remember that some companies might be a little lenient on first time violations, minor accidents etc. You might want to use it to your benefit. Last but not the least, there are some laws and guidelines regarding when the insurance premium may be increase, companies can’t do it according to their whims. So do find out the details of what happens when you commit any infraction before applying for car insurance.