Question:

How Does My Driving History Affect My Auto Insurance Premium?

Answer:

Your driving history is one of several factors that goes into determining your auto insurance rate. Other factors include the type of car you drive, your credit history and what type of coverage you choose.

Most auto insurance companies look at the past three to five years of your driving record to see if you have any history of accidents or traffic violations.

If you’re a good driver, you will benefit on your policy. If you have no accidents or tickets, you may qualify for a Good Driver Discount with many auto insurance companies. With this discount, you can save 5 to 20% off of your car insurance premium.

If you have a bad history of driving, you may not be so lucky. If you have one accident that was your fault in the past few years, your insurance company may or may not raise your rate because of it. Companies like Allstate offer Accident Forgiveness and do not raise your rate after just one accident. But not all companies offer this, and after one accident you can be sure your rate will increase up to 40%!

If you have several traffic tickets, be it speeding or hazardous driving, you may also see an increase in your rate. Insurance companies communicate with the Department of Motor Vehicles every few months, so if you get a ticket one month, it may actually be several months before you see an increase in what you pay.

The best thing you can do is work to clean up your record if your driving history is a bit spotty. As soon as you reach that three year threshold of a good record, contact your insurance company to see if they can come down on your rates, or get a quote on our site to find a company that can offer better prices.