How Does Your Driving Record Affects Your Auto Insurance Rates
Car insurance is pricey, and some states have higher costs than others. In Michigan, car insurance costs are known to be higher than the national average due to a high number of uninsured drivers and harsh winter weather conditions. Michigan also operates under a no-fault insurance system, which may also contribute to higher rates.
Another thing that can affect your insurance rate: your driving record. A driver’s record significantly impacts auto insurance rates. A clean driving record with no accidents or traffic violations generally means lower premiums. On the other hand, a history of accidents or violations, especially serious ones like DUIs, can cause substantial increases.
Why does your driving record play a role in your insurance rates? Insurance companies use driving records to assess risk. A poor record indicates a higher likelihood of future claims, resulting in higher costs.
If you’re a new driver without an insurance track record, you will also likely have to pay more. This is because new drivers lack experience and are more likely to be involved in an accident.
Like to speed? You might want to slow down after reading this. Speeding tickets can lead to increased rates, with some estimates suggesting an increase of around 25%.
You will also want to avoid drinking and driving. More serious violations, such as DUIs or reckless driving, can significantly increase premiums, sometimes by 70% or more.
At-fault accidents are also a major factor and can lead to substantial premium increases. A pattern of violations, such as multiple speeding tickets within a short period, can further increase rates. Drivers with a history of multiple or serious violations will be classified as high-risk, potentially leading to higher premiums or even difficulty finding coverage.
You may wonder: How do insurance companies know about your driving record? When you apply for a new car insurance policy, insurers typically check your driving record. However, they rarely do so when renewing an existing policy. This means your driving history has a greater impact when you’re switching companies or shopping for new coverage than when you’re simply renewing.
Minor violations often go unnoticed by insurers unless they lead to an accident and a resulting claim. However, if an offense results in damages and a claim is filed, your insurer will likely find out.
If you are currently in the market for a new policy, be aware that even a minor moving violation can raise your premium by as much as 15%. Most insurers review your driving record over the past three years, so violations may affect your rates for quite some time. If possible, consider waiting until the violation falls off your record before applying for new coverage.
Contact Us Today
Many factors can affect your auto insurance rates. By following traffic laws and driving safely, you can keep costs down.
Hartman Insurance Agency, Inc. in Saline, Michigan, can make sure you have the right coverage. Coverage options vary by driver and car, so speak to an agent today and we can help you find custom solutions. Contact us via (734) 999-4190 or online here to schedule a consultation with our office.