Do Car Insurance Companies Look At Your Driving Record?

Car insurance companies often think that the driver’s driving record is the key to the driver’s claims in the future. While the auto insurance company cannot pull-up the full motor vehicle report (MVR) of the driver — they can pull up the summary of the driver’s list of recent accidents, convictions, and tickets. In every state, there are minimum years the insurance company has to look back at the driver’s record — for example, in California, the minimum look back years is three years. However, offenses and tickets the driver incur within the ten years can still be seen on the record.

When a driver is seeking car insurance — the insurance provider carries out a risk assessment to the driver — as part of its underwriting process. This assessment is used to classify the proposed insured if the individual is for high risk, low risk, standard, or substandard class. With that, the foremost way to assess the proposed insured is to look at its driving record. The driving record generally includes the violations of the individual, including its convictions, and moving violations. Additionally, it also consists of the at-fault and not-at-fault accident of the driver. The insurance companies see the driver’s risk based on the severity of the driver’s recent violations — collisions, and accidents.

If the proposed insured has a recent traffic violation and accident, the driver is more likely to incur identical problems shortly — in conclusion, it increases the risk of the insurance companies’ liability or paying for a claim. As a result, it may make the insurance company charge the proposed insured a higher premium rate — because, for them, the driver would be risky to ensure. It would be more perilous due to the reason that the driver will probably file more claims and will have to compensate for every claim.
An MVR is a report that includes the driver’s driving history, which is from the report of the State Department Of Motor Vehicles. The information on this report consists of the information of the driver’s license of the individual, convictions, point history, and convictions. Besides, it also has information about the driver’s license status on the driving record. Some states report every driver’s driving record for the past five years and more of the history — however, most states only publish the past three years of the driver’s record. Besides, MVR also provides insurance companies any information or license restriction of the proposed insured — for example, if the proposed insured is not allowed to drive at night due to impaired eyesight.
1. Penalty Point Or Demerit Point System
The purpose of this point system is to determine and give the traffic offenders a corresponding penalty for their actions — while penalizing them on a legal process. Penalty point is a point that could be accumulated by an individual over time due to infringements and traffic offenses. When the individual reaches the maximum threshold points — the license of the individual will be automatically suspended or canceled. Besides, the license can be revoke — if the individual exceeds the maximum allowable threshold points.

2. Moving Violations
Moving violation is ay violation done by the individual to the law — while the vehicle is on the motion. These violations are charged against the actual driver, while some violations are civil matters involving the owner of the vehicle — like parking violations.

Moving violations are generally classified as misdemeanors that can be penalized with monetary fines. However, some moving violations are considered as felonies — including hit and run, involvement in road rage, and hit and run. Typically, moving violations of convictions can result in demerit points and fines. Furthermore, the driver may even need to re-take his driving test, pay excess axes, or worst is a revoked license.

Examples Of Moving Violations
  • Over speeding, or merely exceeding the designated limits of the law.
  • Running red traffic light.
  • Failure to signal before turning to another lane
  • Not wearing a seatbelt while driving
  • Failure to give way to a school bus while children are on board
  • Driving on a bus lane and bicycle lane
  • Failure to stop after involvement in traffic collisions

3. Traffic Ticket
A traffic ticket is a notice and an indicator that the motorist has violated a traffic law. Traffic tickets usually come in two forms — including moving violations and non-moving violations such as parking violations.

4. Drivers License Diver’s license is a legal document that is authorizing the person to operate a vehicle. This document is often in a credit card size and a plastic. In some jurisdictions, driver’s licenses can only be given if the driver passed the driving test.

5. Reckless Driving Reckless driving is generally a major moving violation — compare to improper driving, careless driving, and driving without proper attention — reckless driving is a more serious offense. Also, reckless driving violations can be punishable by convictions, driver’s license revocation, fines, and imprisonment.
Fortunately, even if the driver has to pay higher insurance rates due to not so pleasant driving record, — that particular high insurance rates are not permanent. The rate will not be permanent as the look-back period matures — and it will automatically drop-off your record will no longer use, to determine the insurance rate of the driver. For further illustration, suppose that you caught an at-fault accident in 2017 the record will automatically drop on the present year — so it means on the next year, your insurance policy rate will decrease.
1. Insurance companies know how to pull up information about your driving record.
The agents on the insurance companies know all the information about you, wether how many traffic tickets you have and your commute length. They can also see your claims history and your MVR and credit score. Additionally, agents can also pull up reports that include your mileage, drivers who live with you that you didn’t disclose and whether you own a home or renting an apartment. Your insurance agents can see even your current carrier.

2. Insurance companies know your vehicle’s ISO rating.
ISO’s vehicle rating program has 75 symbols based on the model, safety ratings, and make of the vehicle. These ratings can take into account in determining the future losses that may occur on which are vehicle-related.

3. They know if your new tickets can raise your insurance premiums.
In traffic laws, not all traffic tickets are the same or equal. An insurance underwriter knows which traffic tickets would not affect your insurance rates. Typically, non-moving violations — such as parking violations, can not affect your insurance rates. However, if your violations are in a moving violation such as running the red light, it can raise your insurance rate — but not as high, in comparison with an individual who is an ex-convict for reckless driving

4. Insurance underwriters know if your rates will rise if you make a claim.
Car insurance providers are strict on giving surcharges to insured — they know if the claim or an accident is surchargeable or not. Additionally, in car insurance, bodily injury claims can raise your car insurance rates more — than property damage claims.

5. Insurance companies know if your vehicle may deem a total loss.
Sometimes, what seems to be minor damage can deem your car into a total loss. The factors in determining if your vehicle procures a total loss vary from different insurance carriers. Furthermore, state law conducts an investigation to determine if the car is in the state of a total loss.

6. Insurance companies know if you’re at risk of non-renewal.
Every individual always thinks that their past violations cannot affect their insurance premiums. However, car insurance companies know the real score of their prior offenses. Also, underwriters know the guidelines of their insurance companies for a non-renewing policyholder.

7. Certain types of claims can be rejected.
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Insurance agents know that your policy can not cover specific claims. There are certain exclusions for the actions of the driver. To give an example, you file a claim where you claim that your son purposely smashes your car. With this claim, coverage wouldn’t be applicable since the action is intentional. Furthermore, other general exclusions are wear and tear, and damages due to road racing. Furthermore, owner-made damages, such as slashing his own tires and smashing his own car windows. The comprehensive coverage of your car insurance policy technically covers your car in case of theft. However, car insurance companies know if you only want reimbursement for your personal properties; unfortunately, your personal properties cant be applicable for coverage by your car insurance’s comprehensive coverage.