Your Driving History's Effect on Auto Insurance Prices

Your driving history has a significant impact on the price of your auto insurance. A spotless record usually translates into cheaper insurance; an accident or infraction history will drive up rates dramatically. Parking citations and other small violations can have a detrimental effect. Insurance companies view a conviction for DUI or DWI as a high risk, which is why your rates may climb significantly. Over time, though, a dedication to safe driving habits might lessen the effects of prior infractions.

Mishaps

Insurance companies typically check your driving record on the Comprehensive Loss Underwriting Exchange (CLUE) report to determine if you have been involved in any accidents or have filed any other claims recently. This data is crucial to the computation of your rates because it indicates any moving infractions. Your insurance rates will almost certainly increase if you have an accident on your record. This is because insurance companies are reluctant to cover drivers with a spotty record because they view an accident as a risk factor. An accident will usually affect your rates for three to five years, though the precise duration may differ depending on the state and insurance company. On the other hand, some companies provide "accident forgiveness," which can lessen the impact of an at-fault collision and prevent your premium from going up. To find out more about whether this insurance option is available, speak with your provider. Additionally, see if they provide incentives for responsible drivers. These typically last for three years and are accessible in most states.

Traffic Infractions

It's critical to comprehend the potential effects of traffic tickets on your insurance premiums, regardless of the number of tickets you've received. Insurance companies base their premiums on risk; thus, the more moving infractions you have on your record, generally speaking, the higher your rate will be. The severity of the transgression is one of several elements that influence how much a traffic ticket affects your rates. Rate hikes for serious offenses like DUIs and careless driving are usually greater than those for minor infractions like speeding tickets or tinted windows. It will also depend on how long the infraction remains on your record. Serious infractions typically have longer record retention periods than infractions of lesser gravity. After getting a ticket, it's always a good idea to compare insurance estimates because different insurance companies have varying penalties for infractions. Another choice is to contest the ticket in court, which occasionally results in the offense being dropped or reduced and keeps your rates from going up too much.

DUI/DWI

Driving under the influence, or DUIs, can significantly affect the cost of auto insurance. This is because having a DUI conviction on your record affects you for years. Furthermore, some insurers decline to provide coverage to people who have a DUI on their record. Some significantly raise the cost and, if it's your first infraction, even terminate or not renew your coverage. A DUI in New York can result in an average 80 percent increase in your auto insurance premium. The good news is that your prices will gradually decrease again if you maintain accurate records. States have different deadlines, but generally speaking, you have three to seven years to maintain a spotless record. If you have the option, you might want to think about changing insurers in the interim or getting insurance from your state's designated risk pool. It is advisable to review your state's legislation about this matter, as each state has different DUI consequences.

Age

Insurance companies consider a number of factors when determining premiums for drivers. These consist of location, car type, driving history, age, and gender. Younger drivers are more likely to be involved in auto accidents and have less driving experience, so their rates are usually higher. If they have a spotless driving record, many teenagers can reduce some of their expensive premiums by being added to their parents' insurance. Rates may rise somewhat for minor infractions, but they will rise considerably for at-fault collisions and serious infractions like DUIs. Additionally, because accidents, theft, and vandalism are more common in metropolitan areas, your rate can increase if you recently relocated there. Another factor influencing rates is gender; in the majority of states, men pay more for auto insurance than women. Over time, this disparity gets smaller but never completely vanishes.