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Driving Records Impact Car Insurance Costs

car insurance costsYour driving record is the most important aspect of car insurance costs. If you get a lot of tickets or get in many accidents you’ll pay the price with higher insurance costs. Smart drivers realize this and make efforts to keep clean driving records so they can obtain the lowest insurance rates.

The impact of being tagged as a “risky driver” can lead not only to higher rates, but in many jurisdictions to revocation of driving privileges.

Insurance companies keep close track of driving records through state Departments of Motor Vehicles, which monitor and record each and every individual who has a driver’s license for their driving behavior. Speeding tickets, red light runners and drunk drivers are just some of the offenses the DMV tracks in every state.ci-5

When you are tagged as a risky driver, all insurance companies may charge you a higher premium compared to the person who has a clean driving record. Driving records are based solely on a point system meaning the more serious the infraction the more points are added to your record. Each infraction is assigned a point value, and by having more points on your record you may be tagged a high risk driver.

That is not the only impact on your auto insurance. As a high risk driver or a driver with a bad record you will not qualify for any promotional discounts from insurance companies.

However, if you are regarded as a risky driver you may attend a hearing in many states, comply with all penalties and sanctions courts enforce against you and eventually be granted “accident forgiveness.” The points can be wiped away in time in many areas if you agree to take seminars on road safety and driver improvement classes.

The impact on car insurance costs can be massive, adding as much as 300% to the cost of your insurance for serious offenses. Driving within legal limits and obeying all other rules of the road are the best assurance to keeping your auto insurance costs as low as possible.