Why Your Driving Record Matters for Auto Insurance & How to Protect It

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Insurance 101: Tips and Tricks to Choosing the Right Policy

Since my parents always added me to their auto insurance policy when I was a teenager, I never learned how to make educated insurance policy decisions. When I moved out of my parents house at the age of 25 and it was time to get my own policy, I was overwhelmed with all of the decisions I had to make. Thankfully, my parents were eager to teach me what each insurance coverage option meant and what the best choices were for me. I learned a lot about insurance during this experience, and I am eager to share what I learned with others on my new blog. I also plan to include many tips on choosing health and homeowners insurance policies, so check back often if you want to learn a little more about insurance!

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Why Your Driving Record Matters for Auto Insurance & How to Protect It

31 May 2019
 Categories: Insurance, Blog

While an auto insurance agency will base your premiums on many factors, one of the factors that will greatly affect your rates is your driving record. If you want to avoid paying high premiums for auto insurance, one of the best ways to do this is by protecting your driving record.

Why your driving record matters to insurance companies

Every factor that insurance companies use when calculating quotes is important to them as they reveal details about a person's risk level, and this includes your driving record. Your driving record can either reveal that your risk level is low or high. It could also reveal something between these two extremes. When you have a spotless record, it means that it is free from accident claims, tickets, and traffic violations, which means your risk level is very low. If you have accident claims and tickets on your record, it indicates that you are a higher risk, and thus your rates will increase. Insurance companies base rates on risk levels for all categories they factor in.

Ways to protect your driving record

Protecting your driving record is vital if you want to keep your insurance rates low. The best ways to keep a clean record are by driving safely and obeying all driving laws and rules. If you can avoid getting tickets or getting into accidents that are your fault, you will be able to keep a spotless driving record. If you are really interested in protecting your driving record, you could always consider taking a defensive driving course to learn more strategies for this. Not only can you learn a lot from these classes, but your insurance company could offer you a small discount on your policy simply from completing a driving course.

Ways to save money if you currently have a bad driving record

When you already have a less-than-perfect driving record, you could still find ways to save money on your insurance. For example, you could raise your deductible to get a lower premium. You could also ask about discounts that you might be eligible for, or you could buy a different car that is safer or worth less money. These options could reduce your insurance costs, too.

If you are interested in saving money on auto insurance, you might be able to by switching to a new company. To learn more about this, contact an insurance agency today.