Driving record is a major determine factor the it comes to what auto insurance rate you qualify for. Keeping a clean record over a period of time can help to lower your car insurance premiums. If you have a history of accidents and claims you will look like a risky policy holder. With more risk comes higher rates on auto insurance.
Your auto insurance company will more than likely pull a summary of your motor vehicle report (MVR). It will list most of your tickets, accidents, convictions and relevant information. The amount of time the insurance company will go back will vary depending on the state you live in and the auto insurance company your policy is through.
How will the auto insurance company use my driving history
Your auto insurance company will perform a risk assessment as part of the underwriting process. Basically they will determine the amount of risk you carry as a driver and the amount of risk the vehicle you drive carries.
One of the most accurate ways to gauge risk is by viewing a drivers driving history. They may take a look at any past violations, claims, or other relevant information. There’s a good chance they look at whether or not you were at fault as well. They will take all of this into consideration to determine your risk.
Drivers with a history of accidents show patterns of repeating this same situations. This might make you look like more of a risk to insure. With a history of accidents comes a history of auto insurance claims. Claims mean the insurance company has to pay money usually. When you use your insurance more often you are at more of a risk to file a claim in the future. In turn costing the auto insurance company more as well.
What is usually found on an MVR
Your MVR will include moving violations, criminal records relevant to driving history (ie; DUI’s), failure to appear in court records and more.
Your MVR will also give you auto insurance company info on license restrictions, for example poor vision or night time restrictions. It will also include license suspensions, revocations, and common violations. There is usually a loopback period determined by your state laws.
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