Your driving record isn’t just a badge of honor (or shame) at the dinner table—it can have a direct impact on your auto insurance premium! So, what’s the deal with those speeding tickets or clean-slate histories? Let’s dive into how your driving behavior affects your wallet.
What Insurers Look For
Auto insurers review your driving history to determine how “risky” it is to insure you. Key factors they consider include:
- Accidents: At-fault accidents can increase your premium since you’re seen as a higher risk to insurers.
- Speeding tickets: Even a single ticket can lead to a higher premium, especially if it’s a serious violation.
- DUI/DWI: These major offenses have some of the most significant impacts, often resulting in steep premium increases or even policy cancellation.
- Clean driving record: A record free from accidents or violations may reward you with lower premiums, safe driver discounts, or preferred rates.
Claims Scenarios
- Scenario 1: You were involved in a minor fender-bender last year, and even though it didn’t seem like a big deal at the time, your premium went up. Why? Your insurer sees you as a potential repeat offender who might file more claims.
- Scenario 2: You’ve been ticketed for speeding twice in the past two years. As a result, your insurer bumps up your premium, viewing you as more likely to engage in risky driving behavior.
Ways to Improve Your Premium
Don’t worry—there are ways to keep your rates in check, even if your record isn’t perfect:
- Safe driving courses: Completing a course may reduce your premium or help remove points from your license.
- Accident forgiveness: Some insurers offer programs that “forgive” your first accident and won’t raise your rates.
- Time: Minor violations can fall off your record after a few years, so keeping a clean record going forward will help.
Your driving record is a major player in determining your auto insurance rates. At Grace First Insurance Agency, we can help you understand how your past driving affects your premium and find ways to lower your costs. Give us a call at 714-968-8008 to explore options!
