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Can Driving Records Lead to Record High Auto Insurance Rates

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Can Driving Records Lead to Record High Auto Insurance Rates?

Purchasing auto insurance is necessary for every driver to make sure that you and others are protected on the road. If you have been driving for a while, you know that accidents are fairly common. Sometimes, they have nothing to do with your driving skills or precautions you take. But accidents are just that: accidents. On average, every driver will be in 3 to 4 accidents in their lifetime. In addition, about 20% of drivers get a speeding ticket every day, according to research done by Forbes.

What Insurance Companies Consider

Fortunately, accidents are viewed by insurance companies on a few levels of criteria. For example, they evaluate whether or not you caused the accident, what kind of damage was caused and how frequently accidents occur on your record. Thus, it is not a one size fits all. At first glance, this may seem a bit harsh and pointed at the unlucky drivers out there. However, we have all gone over the speed limit a little in our lives.

Why They Increase Rates

From the insurance company’s perspective, they are raising the rates on what they view to be reckless drivers for a few pretty good reasons. For one, the insurance company is promoting good driving behavior. Not only will you have to worry about paying the hefty speeding ticket but now you have to face the monthly raised price of insurance. Hence, perhaps you can wait the extra five minutes to get your morning coffee. Secondly, if you are getting in accidents frequently and have several tickets on your record, the insurance company has to protect themselves as well. It may be frustrating, but it makes sense.

How Long Will the Increase Last?

What do you do if you have 4 speeding tickets and a fender bender and you are looking to switch policies? Keep in mind that each violation has its own time length on your record. For instance, small offenses like a rolling stop or a cell phone ticket will last on your record for as long as 3 years. This means you could get a surprise on your insurance bill for the next 3 years. While I don’t have any secrets to get rid of these, what you can do is try to avoid any reckless driving behavior for the next 3 years. Basically, that means waiting to order your postmates or doordash until you get home. What will you do in traffic?!

The Takeaway

In conclusion, avoiding bad behaviors will significantly lower your rates after the allotted time passes. In the end, insurance is a necessity and there is no way to avoid the monthly fees, but you can make them hurt a lot less. There are several ways to lower your rates but just following these rules can eliminate unwanted charges. Check out our articles on understanding how tickets affect your rates and how to keep your rates low.

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