How Does My Driving Record Affect My Car Insurance Rates?
Your driving record plays a crucial role in determining your auto insurance rates. Insurance companies use your driving history to assess the risk of insuring you. Here’s how different aspects of your driving record can impact your premiums:
1. Accidents
If you’ve been involved in accidents, especially those where you were at fault, your insurance rates are likely to increase. Accidents signal to insurers that you might be a higher risk driver, leading to higher premiums. Typically, accidents can stay on your record for three to five years.
2. Traffic Violations
Speeding tickets, running red lights, and other traffic violations can also raise your insurance rates. Even minor infractions can add up, signaling risky driving behavior to insurers. For instance, a single speeding ticket can increase your rates by around 25%.
3. DUI/DWI
Driving under the influence (DUI) or driving while intoxicated (DWI) are serious offenses that can drastically increase your insurance rates. These violations can stay on your record for a long time, sometimes permanently, and can increase your premiums by as much as 50%.
4. Clean Driving Record
On the flip side, maintaining a clean driving record can lead to lower insurance rates. Insurers reward safe drivers with discounts and lower premiums. A history free of accidents and violations shows that you are a responsible driver, reducing the risk for the insurance company.
5. Claims History
Frequent claims, even for minor incidents, can lead to higher premiums. Insurers may view a high number of claims as an indicator of higher risk, leading to increased rates.
