Auto Insurance: Past History Impacts Premiums

When it comes to determining insurance rates, auto insurance companies typically look back at an individual's driving record over the previous three to five years. This includes checking for traffic citations, vehicular crimes, accident reports, speeding tickets, reckless driving convictions, and other moving violations. However, the look-back period can vary depending on state regulations and the company, with some states allowing insurance companies to look back up to ten years. Serious violations, such as DUIs, can remain on an individual's driving record for up to ten years and significantly impact insurance rates.

Auto insurance companies typically look back at 3-5 years of driving history

When it comes to determining insurance rates, auto insurance companies typically look back at 3-5 years of driving history. They take into account traffic citations, vehicular crimes, and accident reports. Accidents for which you were deemed at fault will be penalised, and speeding tickets, reckless driving convictions, and other moving violations will also be taken into account. Serious vehicular crimes like impaired driving and vehicular manslaughter may even double your insurance costs.

While most insurance companies follow a standard five-year "look-back" period, some providers may adhere to different policies due to variations in local insurance statutes. For instance, Massachusetts allows a "look-back" period of up to 10 years, while states like Washington and Virginia require insurance companies to disregard driver-history data that's older than three years.

It's important to note that these driver-history statutes are subject to change and may become irrelevant with the increasing use of maneuver-recording devices like Progressive's SnapShot, which could enable insurance companies to establish "permanent" files on their policyholders.

In addition to your driving history, insurance companies also consider your demographic profile when calculating insurance rates. They will also check your insurance history, including the number of claims you've made, through databases like the Comprehensive Loss Underwriting Exchange (CLUE).

Some companies may look back as far as 10 years

The number of years that auto insurance companies look back varies depending on the company and the state. While most companies look back between three and five years, some may look back as far as ten years.

Massachusetts, for example, allows insurance companies to look back at up to ten years of driving records. On the other hand, states like Washington and Virginia are more lenient, requiring insurance companies to disregard driver history data that is older than 36 months.

Insurance companies that look back ten years are typically considering serious driving violations such as DUIs and DWIs, which can remain on your driving record for up to ten years. These violations can result in significantly higher insurance rates, with DUIs increasing rates by up to 72%.

In addition to DUIs, insurance companies may also consider other major driving violations when determining rates. Examples of major violations include speeding (at least 20 mph over the limit), reckless driving, impaired driving, leaving the scene of an accident, and vehicular manslaughter. These violations stay on your record longer and can significantly impact your insurance premiums.

It is important to note that the duration of violations on your record can vary by state. For example, in Florida, causing an accident while under the influence stays on your record for 75 years, essentially your lifetime. Therefore, it is advisable to check the specific regulations in your state to understand how long violations will impact your insurance rates.

Minor violations like speeding stay on record for 3 years

The length of time that auto insurance companies look back into a person's driving history varies. Some companies look back three years, while others may look back five years or even ten years. This is known as the "look-back" period.

When it comes to minor violations like speeding, these tend to stay on a person's record for three years. This is the case in most states, including California. After the three-year period, you will no longer be charged for the violation in terms of your insurance rates. However, insurance companies may still pull five years of driving history from your Motor Vehicle Report (MVR).

It's worth noting that the amount of time a minor violation stays on your record may be different from how long it affects your car insurance rates. For example, a speeding ticket may stay on your record for three years, but it could disqualify you from a good driver discount for a longer period. Additionally, some states may have specific laws that limit how far back insurance companies can look back to determine rates, even if the violation remains on your record for an extended period.

The impact of minor violations on your insurance rates also depends on the company's guidelines and the state's insurance regulatory body. For instance, Progressive and State Farm tend to look back two to three years, while other companies may look back further if you have multiple speeding tickets or accidents.

Major violations like impaired driving can stay on record for 75 years

The length of time that auto insurance companies look back in a driver's history varies, but it is typically around three to five years. However, it is important to note that the duration can differ depending on the state and company. For instance, Massachusetts allows a "look-back" period of up to 10 years, while Washington State and Virginia require insurance companies to disregard driver-history data older than 36 months.

When it comes to major violations like impaired driving, the consequences can be much more severe and long-lasting. In some states, a DUI conviction may remain on your record permanently. For example, in Florida, an alcohol-related offense will stay on your driving record for 75 years. This is significantly longer than the typical duration for less severe violations, which usually remain on your record for three, five, seven, or ten years.

The impact of a major violation on your insurance rates can be significant. Serious vehicular crimes like impaired driving can increase your insurance rates by 100% or more. Additionally, a history of tickets or violations indicates a higher risk to insurance companies, which can result in higher insurance premiums.

It is worth noting that even after the look-back period has passed, the violation will still remain on your driving record. This means that insurance companies can access this information, potentially impacting your insurance rates. To mitigate the impact of a major violation, it is advisable to improve your driving habits and maintain a clean driving record.

To summarize, while auto insurance companies typically look back around three to five years, major violations like impaired driving can have long-lasting consequences, with some states keeping these offenses on record for up to 75 years.

DUIs can increase insurance rates by 72%

Auto insurance companies typically look back at a driver's history for three to five years. However, this duration can vary based on state laws and the company's policies. Some states, like Washington and Virginia, mandate that insurance companies only consider a driver's history from the previous 36 months, while others, like Massachusetts, permit a "look-back" period of up to ten years.

Now, let's delve into the impact of DUIs on insurance rates. Driving under the influence (DUI) is a serious offence that significantly increases insurance rates. According to recent reports, a single DUI can drive up insurance rates by an average of 72%. This substantial increase stems from the fact that insurance companies view individuals with a DUI as high-risk drivers. The presence of a DUI on a driving record indicates impaired judgment, coordination, and reaction times, making the driver more likely to be involved in an accident. Consequently, insurance companies charge higher rates to account for the increased likelihood of claim payouts.

The exact increase in insurance rates due to a DUI can vary depending on factors such as location, age, and insurance provider. For instance, in North Carolina, the average rate hike is 266%, while in Alaska, Florida, and Missouri, drivers face smaller increases of around 33%. It's worth noting that multiple DUIs will result in multiple premium increases, further exacerbating the financial burden.

The elevated insurance rates typically persist for up to seven years from the date of the offence. However, the duration can vary, and in some cases, a DUI may affect insurance rates for even longer periods. For example, in California, while the DUI surcharge may eventually be removed, drivers are ineligible for a 20% good driver discount until ten years after the DUI.

To mitigate the impact of a DUI on insurance rates, individuals can shop around and compare quotes from multiple insurance companies, as rates can vary significantly between providers. Additionally, maintaining a clean driving record, completing safe driving courses, and improving credit scores can also help lower premiums over time.

Frequently asked questions