How Does Driving History Affect Car Insurance Rates?

Source: ValuePenguin 

Top 5 States with the Highest Car Insurance Rate Increases After a Traffic Ticket:

• California (43.45% increase compared to a driver with no traffic ticket)
• North Carolina (38.13% increase compared to a driver with no traffic ticket)
• Massachusetts (29% increase compared to a driver with no traffic ticket)
• Colorado (28.63% increase compared to a driver with no traffic ticket)
• Illinois (28.49% increase compared to a driver with no traffic ticket)

Top 5 States with the Highest Car Insurance Rate Increases After an Accident:

• California (97.62% rate increases after crash)
• New Jersey (91.96% rate increases after crash)
• Texas (85.16% rate increases after crash)
• North Carolina (75.54% rate increases after crash)
• Connecticut (62.89% rate increases after crash)

In short, the car insurance rate always increases each year to some extent. In 2025, regular car insurance prices are expected to go up by 7.5%. In circumstances like that it’s very important to maintain a clean driving record so that you don’t end up paying extra money. Regardless of which state you’re residing in, always give the highest priority to safe driving. Safe driving is the most effective strategy of all for keeping your car insurance rate under control. 

How Does Your Driving Record Affect Car Insurance Premiums? 

Auto insurance companies check your driving record. It’s the key factor in determining car insurance rates. Insurers consider it to assess risk. A clean record signals safe driving and lower chances of filing claims. On the other hand, records with serious accidents, or traffic violations like speeding tickets, or DUIs suggest higher risks. Insurers charge more to offset potential losses. 

Driver’s license point system is a major factor in how your record affects car insurance rates. Many states assign points for traffic violations, with each type of infraction carrying a different value. Accumulating points marks you as a higher-risk driver. If you have too many points on your record, you’ll face higher car insurance premiums. Plus, your driver’s license might get suspended. 

For example, in Virginia, speeding 1 to 9 miles over the limit adds 3 points to your record. Reckless driving, like failing to stop for a school bus, can add 6 points. In New York, points range from 1-11, depending on severity. Speeding 1 to 10 miles over the limit adds 3 points while texting while driving adds 5 points. 

In Michigan, reckless driving, fleeing from police, DUI, or other serious offenses add 6 points. 4 points means you’ll get a warning from the Michigan Secretary of State (SOS), 8 points means another warning letter. If you accumulate 12 points, you’ll be asked to undergo driver reexamination which typically includes vision, knowledge, and road test. Failing the test could lead to license suspension. 

California uses a similar system but focuses on the frequency of violations. Minor infractions, like failing to signal, add 1 point, while DUIs or reckless driving add 2 points. North Carolina drivers face an expensive penalty. If they commit some violations such as passing a stopped school bus, it gets them 4 points and significantly raises car insurance costs. 

It's worth noting that most states allow points to remain on record for 3 to 5 years though serious offenses like DUIs may stay longer. Insurance companies can get access to these points through your motor vehicle report and adjust your premiums accordingly. 

So, Why Do Insurance Companies Use Your Driving Record to Set Rates? 

When it comes to car insurance, companies want to ensure you're a safe driver. But what if you're not? You'll still get insurance, but the risk level is higher, and you're more likely to cause accidents or traffic violations that insurers have to cover. The higher the risk, the higher the premium they set to balance things out. 

To evaluate the level of risk you pose as a driver, insurance companies use your driving record. A clean record means you’re a safe driver and less likely to file a claim. This lowers the insurer’s financial risks and results in lower premiums for you. On the other hand, a history of violations or accidents indicates a higher possibility of future claims. 

Driving records also help insurers categorize you as a driver into risk groups. Preferred drivers, with no violations, enjoy lower premiums. However, standard or non-standard drivers with infractions or claims, pay more. 

How Do I Check My Driving Record Before I Get a Car Insurance Quote? 

Before obtaining an auto insurance rate from your desired provider, it's wise to review your driving records. You can check them through your state’s Department of Motor Vehicles (DMV) or Bureau of Motor Vehicles (BMV). Most states allow you to request a copy online. To access your record, you'll often need to provide personal details, such as your driver’s license number, and pay a small fee. 

In states like California, Texas, and Maryland, you can access a basic driving record for free, although official copies may require a fee. For example, Washington charges $15 for an online record request. Whether you're purchasing auto insurance or updating your car insurance coverage, checking your record helps you be aware of any violations or points that could affect your insurance rates. 

How Do Insurance Companies Get Access to My Driving History?

Insurance companies can see your driving history through your Motor Vehicle Report (MVR). Each state’s DMV or BMV maintains this report for every driver. When you apply for auto insurance, you sign an agreement that allows insurers to review your record. 

The MVR contains details about accidents, traffic tickets, and violations from the past 3 to 5 years. If you have committed serious offenses like DUIs, this may stay on record even longer than 5 years. Some insurers also use their own point system to evaluate your risks. 

How Good Drivers Can Save Money on Car Insurance? 

Good drivers can qualify for lower rates due to their safe driving habits. Here’s how they can save more:

1. Ask for a Good Driver Discount: Many insurance companies offer discounts to drivers with no accidents or violations in the past three years.
2. Enroll in Usage-Based Insurance (UBI): Look for insurance companies that offer UBI programs. It’s a type of auto policy where your insurance rate is determined by how and how much you drive.
3. Take a Defensive Driving Course: Some insurers reduce premiums for completing approved defensive driving courses. Discounts often range from 5% to 20%.
4. Bundle Policies: Combine auto insurance with other policies such as renter’s, motorcycle insurance, or commercial vehicle insurance to save money.
5. Shop Around for Rates: Even with a clean record, premiums vary between insurers. So, compare quotes to find the best rates.

Affordable Car Insurance Options for High-Risk Drivers by L.A. Insurance

If you’re looking for the cheapest car insurance for bad drivers, visit L.A. Insurance whether online or physically. We’ve designed affordable full coverage auto insurance for high-risk drivers. No matter the type of infractions you have on your record, speeding tickets, accidents, or DUIs, we have over 33 years of experience in providing cheap car insurance. We’re now so far the most affordable insurance agency serving over 10 million happy customers nationwide. 

Dial us at (800) 893-9393 or find an agent here to talk about how we can help find the best car insurance at the cheapest rate even if you’re a bad driver! You can also get your auto insurance quote online and receive instant proof of insurance once you pay for your coverage. 

Auto Insurance Rate by Driving History: The Bottom Line 

Your driving history significantly affects your auto insurance costs. If you’re a good and responsible driver, you will enjoy the lowest rate. In contrast, if you’re a bad driver with traffic violations such as at-fault accidents, speeding tickets, DUIs, or SR-22, you probably will end up paying double that of a regular driver.  

Drivers with a clean record pay less than the national average of $2,100 for full-coverage auto insurance. However, a single accident on your record can increase this rate by 21% on average. 
Insurance companies typically assess risks using your Motor Vehicle Report, claims history, and the driver’s license point system. Points from violations like speeding or reckless driving signal higher risk, which ultimately results in higher premiums. 

Good drivers can save through discounts, usage-based insurance, or bundling policies. Bad drivers also have the option to lower costs by comparing quotes, improving driving habits, being extra cautious at nighttime driving, and completing safety courses. 

Read more about car insurance costs in our articles:

• How much is car insurance?
• How much is car insurance by age?
• The average car insurance costs by gender
• How Make and Model Affect Car Insurance Rates?
• What Is the Cost of Car Insurance Based on Credit Score?
• How Does Your Location Affect Car Insurance Rates?
• How Does Marital Status Affect Car Insurance Costs?
• How Does Annual Mileage Impact Car Insurance Rates?
• How Much Is Car Insurance in Michigan?

Frequently Asked Questions (FAQs)

Can Your Driving Record be Checked by Your Insurance Company? 

Yes, insurance companies can check your driving record. They access it through your Motor Vehicle Report (MVR). When you apply for insurance, you permit them to review your history of violations and accidents by accepting the terms and conditions. 

Is It Fair That People With Bad Driving Records Pay More For Car Insurance? 

Yes, it’s fair because insurance companies look at risk. Drivers with poor records are more likely to make claims. Higher premiums help cover the greater financial risk they pose to the insurers, which makes rates fairer for safer drivers. 

How a Speeding Ticket Affects Your Insurance Rate? 

A single speeding ticket can raise your insurance rates by 21% to 27%. If your current full coverage costs $2,100, after a speeding ticket, you'll pay between $2,520 and $2,667, which is an extra $420 to $567. 

How Much Do I Have to Pay for Car Insurance in Michigan If I’m Caught Speeding? 

In Michigan, after a speeding ticket, full coverage car insurance costs $332 per month or $3,984 annually. This is 26.25% higher than the original rate of $263 per month. So, a single incident can significantly increase your insurance expenses. 

How Long Do Violations Saty on Your Driving Record? 

Violations typically stay on your driving record for three to five years, depending on the state. Serious offenses, like DUIs, may remain longer or permanently. Some states allow points to expire earlier with safe driving or completed driving courses. 

How Serious Violations Like DUIs Impact Car Insurance Costs? 

DUIs notably increase insurance costs often by 85% to 92% on average. Drivers with a DUI pay over $4,000 annually for full coverage auto insurance. This is because driving under the influence is a serious offense and is considered high-risk due to the likelihood of future claims. This leads to substantially higher premiums and stricter policy requirements. 

How Much Is Minimum and Full Coverage Costs After a Speeding Ticket? 

According to NerdWallet, the average annual cost for full coverage after a speeding ticket is $2,693. For minimum coverage, it’s $868. Minimum coverage is cheaper because it only provides basic protection, while full coverage includes comprehensive and collision insurance for more extensive protection.