What You Need to Know About Your Driving Record and Insurance Rates
When your auto insurance carrier calculates how much you are going to pay in premiums each month, they calculate many factors. They check things like your age, your geographical location, and bunch of other indicators of how much of an accident risk you are. But the greatest thing that influences how much money you give your auto insurance company is your driving record.
A clean driving record indicates a low-risk driver, while a driving record that is full of accidents and traffic tickets indicates a driver who is likely to get into an accident again. It is essential to understand how this system works so that you never overpay for insurance.
Driving Record Points
Most states have a program that puts points on your driving record that help lawmakers and insurance companies understand how at-risk of a driver you are. More serious violations equal more points. For example, in California violations such as speeding or having a broken taillight will earn you one point, whereas violations like reckless driving or instigating a hit-and-run accident will result in two points on your record. Acquiring four or more points in a 12-month period will result in license suspension.
The intent of the point system is to identify dangerous drivers and penalize them accordingly. A higher insurance rate is a secondary consequence, serving as a double-whammy.
Please note: living in a state that doesn't have a point system doesn't mean you are immune from higher insurance rates as a result of traffic violations. Every infraction on your record can still be seen by your insurance provider.
How to Avoid Higher Insurance Premiums
The easiest way to avoid getting hit with higher insurance premiums is by always following traffic laws and driving safely. With a completely clean record, you will enjoy the lowest possible insurance rates. However, if you do receive a ticket, you might still have a few ways that you can keep your record clear.
Always Check Your Driving Record
You should check your driving record with the same diligence with which you check your credit score. Mistakes happen, and if there is an error on your record, it can cost you big.
Just a single mistaken traffic violation can mean hundreds of dollars in extra costs to your insurance provider. Check with your state's motor vehicle department to see how you can review your driving record for errors.
A clean driving record indicates a low-risk driver, while a driving record that is full of accidents and traffic tickets indicates a driver who is likely to get into an accident again. It is essential to understand how this system works so that you never overpay for insurance.
Driving Record Points
Most states have a program that puts points on your driving record that help lawmakers and insurance companies understand how at-risk of a driver you are. More serious violations equal more points. For example, in California violations such as speeding or having a broken taillight will earn you one point, whereas violations like reckless driving or instigating a hit-and-run accident will result in two points on your record. Acquiring four or more points in a 12-month period will result in license suspension.
The intent of the point system is to identify dangerous drivers and penalize them accordingly. A higher insurance rate is a secondary consequence, serving as a double-whammy.
Please note: living in a state that doesn't have a point system doesn't mean you are immune from higher insurance rates as a result of traffic violations. Every infraction on your record can still be seen by your insurance provider.
How to Avoid Higher Insurance Premiums
The easiest way to avoid getting hit with higher insurance premiums is by always following traffic laws and driving safely. With a completely clean record, you will enjoy the lowest possible insurance rates. However, if you do receive a ticket, you might still have a few ways that you can keep your record clear.
- Go to traffic school. Many states have a program that allows you to dismiss a ticket simply by completing a course about traffic safety. Others may have a defensive driving program that deducts a certain number of points from your record. Taking the course online allows you to keep your insurance rates clear without even having to attend a physical classroom.
- If you were ticketed illegitimately, you might consider contesting the traffic ticket in court or even hiring a lawyer to do it for you.
- Waiting for a certain time period. Many states simply drop violations on your record after a set period of time.
Always Check Your Driving Record
You should check your driving record with the same diligence with which you check your credit score. Mistakes happen, and if there is an error on your record, it can cost you big.
Just a single mistaken traffic violation can mean hundreds of dollars in extra costs to your insurance provider. Check with your state's motor vehicle department to see how you can review your driving record for errors.