Do Auto Insurance Companies Check Driving History?

You were going just a bit too fast and received a ticket. Perhaps you received a few in a short amount of time? Now, you worry that your auto insurance rates are going to go up. Should you worry?

Auto insurance companies may be able to learn of your driving mishap and your tickets. For this reason, to keep your car insurance rates as low as possible, it is important to drive safely and to avoid breaking any law, especially moving violations. There are a few things you should know about this process, though.

What Information Do Insurers See on Your License?

Insurers cannot obtain a full motor vehicle report for you in most cases.

However, auto insurance providers can obtain a record summary from the Department of Motor Vehicles. They often use this information to make key decisions about your coverage including whether or not to offer you coverage, how much to charge, and whether to renew a policy or not. This summary will include important information including:

• Any recent tickets you received
• Any recent accidents or moving violations
• Reports of any convictions you received

Each state’s look-back period, or the amount of time they can go back and see such records, varies by state laws and the goals of the insurer. In most cases, it extends back three to five years, though it can be longer.

What Can You Expect?

If you are applying for car insurance, you can expect the insurer to take steps to determine how much of a risk you present to the company. This report can help them to do that.

Your past driving experience and activity provides specific information about your potential future actions. Those who have several accidents or moving violations will likely pay more for coverage. The number of incidents and the severity of them is most important.

If you do not have a clean driving record, that’s okay. Tell the car insurance provider about this upfront. Your honesty will make a difference. In most cases, even if you have accidents or violations on your report during the look-back period, these are likely to fall off eventually. After that point, your rates are likely to improve.