While insurance companies don’t have access to complete driving records, they can access basic information such as traffic tickets and suspended license information. Here’s how they use that information.
How insurance companies use your driving record
When you apply for automobile insurance, the insurance company needs to assess your risk. They can measure your risk based on the information in your driving record. A lot of speeding tickets may mean higher insurance costs. Why? If you have had many accidents or traffic tickets, you are more likely than other drivers to get them again. Subsequently, you are more likely to have more claims than a driver with no (or fewer) infractions, so the insurance company may decide you are too risky to insure or simply charge you higher premiums.
What is included on your driving record?
In addition to any accidents or traffic violations that occurred within the past three years, your driving record also includes information about any criminal convictions associated with your driving record, such as DUIs, and any incidents in which you failed to appear at a scheduled court hearing related to a driving infraction.
Your driving record also supplies your insurance company with information about any license restrictions, such as not being allowed to drive at night due to poor eyesight. Any prior license suspensions or revocations within the look-back period are also included.
What if I have a bad driving record?
Luckily, even if your insurances rates go up due to poor driving record, it may not be permanent. Eventually your infractions will drop off the insurance summary and are no longer considered when determining your premium. If your insurance company has a review period of three years, for example, an accident you had in 2012 drops off your record in 2015 and, if you have no new collisions, your insurance rates decrease at your next policy renewal. If they don’t it’s worth asking about.
To learn more about how your driving record impacts your insurance costs, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.