Your driving record is one of the most important factors that car insurance companies consider when determining your insurance rates. It serves as a reflection of your behavior and risk on the road. If you have a history of safe driving, you’re more likely to receive lower insurance premiums, while traffic violations, accidents, or other infractions can significantly raise your rates.
In this guide, we’ll explain how your driving record affects car insurance rates, what insurers look for, and how you can keep your premiums as low as possible by maintaining a clean driving history.
1. Why Your Driving Record Matters to Insurers
Insurance companies use your driving record to assess the risk you pose as a policyholder. A driver with a clean record is considered less likely to file a claim, while a driver with accidents or traffic violations is viewed as higher risk, meaning they are more likely to be involved in future accidents.
Factors Insurers Consider in Your Driving Record:
- Accidents: Any at-fault accidents on your record indicate that you may be a risky driver, and insurers will often raise your premiums accordingly.
- Traffic violations: Speeding tickets, running red lights, and other traffic infractions show a disregard for traffic laws, which increases your risk of being involved in an accident.
- DUI/DWI: A conviction for driving under the influence (DUI) or driving while intoxicated (DWI) is one of the most serious violations and will lead to a significant increase in your car insurance rates.
- Claim history: Even if you’re not at fault in an accident, filing multiple claims can signal to insurers that you’re more likely to be involved in future incidents, which could affect your premiums.
Essentially, your driving record gives insurers a way to predict your likelihood of filing a claim, and higher risk usually means higher rates.
2. How Traffic Violations Impact Insurance Rates
Minor traffic violations, such as speeding or failing to signal, can result in higher insurance premiums, especially if you have multiple violations on your record. While a single infraction may only lead to a modest increase, accumulating violations can significantly drive up your costs.
Common Traffic Violations and Their Impact:
- Speeding tickets: A single speeding ticket might raise your premium by 10% to 20%, depending on how fast you were driving and your overall driving history.
- Running a red light or stop sign: These violations often signal reckless driving behavior and can raise your rates by 20% to 30%.
- Failure to yield: Similar to running a stop sign, failure to yield can indicate risky driving and lead to premium increases.
- Driving without insurance: Driving uninsured is a serious violation that not only leads to higher premiums but could also result in fines or the suspension of your license.
The more traffic violations you have, the higher your insurance premiums will be, as each infraction signals a higher likelihood of being involved in future accidents.
3. The Impact of Accidents on Insurance Rates
If you’re involved in an at-fault accident, your insurance premium will likely increase. The more severe the accident and the higher the claim amount, the more your rates will rise. Even a minor fender bender can cause a noticeable increase in your premiums, especially if it’s your first at-fault accident.
How Accidents Affect Premiums:
- At-fault accidents: Being found at fault in an accident typically results in a rate increase of 20% to 40% or more, depending on the severity of the accident and the amount of the claim.
- Multiple accidents: If you’ve been involved in multiple accidents, your rates could increase significantly, or insurers may even refuse to renew your policy due to high risk.
- Not-at-fault accidents: While not-at-fault accidents generally don’t affect your premiums, some insurers might still raise your rates if you have a history of frequent claims, even if you weren’t responsible for the accidents.
The more accidents on your record, the more you’ll be viewed as a high-risk driver, which can lead to substantial increases in your premiums.
4. DUI/DWI Convictions: The Biggest Rate Hike
A DUI (Driving Under the Influence) or DWI (Driving While Intoxicated) conviction is one of the most serious violations that can impact your car insurance rates. In most cases, a DUI or DWI will result in significant premium increases and may even lead to policy cancellation.
Consequences of a DUI/DWI Conviction:
- Substantial premium increases: After a DUI or DWI conviction, your car insurance rates could increase by as much as 50% to 100% or more. Some insurers may refuse to cover you altogether, and you’ll need to seek coverage from a high-risk insurer, which often comes at a higher cost.
- SR-22 filing: After a DUI, you may be required to file an SR-22 form, which serves as proof of financial responsibility. SR-22 filings typically come with higher premiums and are required for a set period (e.g., 3 years).
- License suspension: A DUI conviction often results in the suspension of your driver’s license, which can make finding affordable insurance even more difficult once you’re allowed to drive again.
Because DUIs are associated with high-risk behavior, insurers treat them as a red flag and significantly increase premiums or restrict coverage options.
5. How Long Do Violations and Accidents Stay on Your Record?
The impact of traffic violations and accidents on your insurance rates doesn’t last forever. Most violations and at-fault accidents will remain on your driving record for a set period, after which they may no longer affect your premiums.
Duration of Violations on Your Record:
- Minor traffic violations: Most minor traffic violations, such as speeding tickets, stay on your record for 3 to 5 years. After this period, your premiums should return to normal if no new violations occur.
- At-fault accidents: Accidents typically stay on your record for 3 to 5 years, though this can vary by state and insurer. During this time, your premiums will remain elevated.
- DUI/DWI convictions: A DUI or DWI conviction can stay on your record for 5 to 10 years, depending on the state. During this period, you’ll face higher premiums, and it may take longer to secure more affordable coverage again.
Each insurer has its policies regarding how long they consider past violations and accidents when calculating premiums, but keeping a clean record moving forward is key to lowering your rates over time.
6. How to Improve Your Driving Record and Lower Your Premiums
Even if you have a history of accidents or violations, there are steps you can take to improve your driving record and lower your insurance premiums. Here’s how you can work toward reducing your rates:
Steps to Improve Your Driving Record:
- Avoid future violations: The best way to improve your driving record is to drive safely and avoid any new violations or accidents. A clean record over time will show insurers that you’re a responsible driver.
- Take a defensive driving course: Many insurers offer discounts for drivers who complete an approved defensive driving course. These courses refresh your driving skills and help demonstrate to insurers that you’re committed to safe driving.
- Ask for accident forgiveness: Some insurers offer accident forgiveness, which allows your first at-fault accident to be waived without an increase in premiums. Check if your insurer offers this option.
- Shop around for new quotes: If your driving record has improved, it may be worth shopping around for new insurance quotes. Some insurers may offer lower rates based on your updated record.
By maintaining a clean driving record and taking proactive steps, you can gradually lower your premiums and qualify for safe driving discounts.
7. Accident Forgiveness: How It Works
Some insurance companies offer an accident forgiveness program, which prevents your rates from increasing after your first at-fault accident. This feature is typically available as an add-on to your policy or as a reward for long-term customers with a clean driving history.
How Accident Forgiveness Works:
- First accident only: Accident forgiveness typically applies only to your first at-fault accident. After that, additional accidents may result in premium increases.
- Qualifications: Insurers often require a clean driving record for several years before offering accident forgiveness. Additionally, the cost of the accident may be capped at a certain amount for forgiveness to apply.
- Not available everywhere: Accident forgiveness may not be offered by all insurers or in all states, so it’s important to check whether this option is available with your policy.
If you’re concerned about premium increases after an accident, accident forgiveness can be a valuable feature to have in your policy.
Conclusion: Keeping Your Driving Record Clean for Lower Rates
Your driving record plays a significant role in determining your car insurance premiums. Maintaining a clean driving history with no accidents or violations is the best way to keep your premiums low. Conversely, traffic violations, at-fault accidents, and serious infractions like DUIs can lead to substantial rate increases and fewer coverage options.
By driving safely, avoiding risky behavior, and taking advantage of opportunities like defensive driving courses or accident forgiveness programs, you can reduce the impact of past violations and work toward lowering your insurance rates over time.
