Car insurance companies have many ways of keeping a tab on their policyholders apart from the obvious indicators like having at fault accidents and making claims. They regularly check with Department of Motor Vehicle (DMV) for traffic violation tickets and point deductions. They also check the latest financial position of policyholders by getting credit report from credit agencies. They can run the automobile to be insured for any past accidents, damages and claims too to make sure they do not insure a salvaged auto.
When they come across any negative information they can add a surcharge to their usual rates. The opposite is true as well since they offer discounts for clean policyholders. Both are in fact the same thing in terms of premiums. Whatever they are called the end result is that your premium can go up, down or stay in its current low level.
Effects of Negligent Driving on Car Insurance Rates
Surely nobody believes to be born as a bad driver. Over time people can keep getting better with experience and cut out behaviours that can cause accidents behind the steering wheel. They develop better respect for traffic rules and do not pick up traffic tickets any more. All these improvements will show results almost immediately. As soon as you complete one year without any troubles on the roads you will start getting discounts.
Carrying on the same direction of constantly making mistakes will result in worrying driving records. This could come to a point that you will be paying large chunk of your wages for car insurance. Some drivers will even find it harder to find auto insurance policies. If you have been having accidents for the last three years on a row it is clear that you are in line for a big one and it is probably soon. Why should any insurer take a chance with you?
When this starts to happen it may be time to go back to driving school and learn it all over again. There are several courses under various names to help you do that. Safe driving or advance driving courses can help you correct some of the mistakes you have been doing. A positive change in your attitude will not be gone without notice.
How Long Does It Take to Clean a Driving History?
As mentioned above you need to take it step by step. Get the first clean year under your belt and move from there. The longer you avoid accidents, claims and traffic tickets the larger the savings. Depending on your age, gender and the company you are with the savings can ranger between twenty to forty percent for three years of no claims and tickets.
Usually, most car insurers look at the last three years of driving history. Some gives further discounts up to five years. So, you would be considered a pretty good driver if you have not had any claims in the last three years. In addition, most points you receive on your driving license due to traffic tickets gets removed from DMV records after three years. In some states serious incidents may take four years and DUI would most likely stay on your record at least five years.