How do Insurance Companies Check Driving Records?

Car insurance is an expense that can vary drastically from person to person, and the pricing for insurance premiums is not always clear. You will be charged a high premium when you have driving violations on your record, which insurance companies can see. This is why many turn to affordable car insurance providers like Freeway Insurance. But, how exactly are insurance companies able to do this? We will be discussing this and more in the article below. 

How do Insurance Companies Get the Data?

The most popular method of an agency obtaining a person’s driving record is directly through the state. This is the cheaper option, but it tends to take a long time. This can cause delays if you are waiting for an insurance quote. 

There are also third-party companies that auto insurers can hire to pull the records. This process is usually faster than going through the state, but the administration fees are higher. 

Driving Records

An insurance company can use your license to pull up your online driving records anytime. Typically, this only occurs when your policy is renewing, or you are switching to a new provider. Your driving records will show activity such as the following:

  • Traffic violations
  • Accidents involving police
  • Demerit points
  • License restrictions and suspensions 

These offenses will show up on your driving record for 3-10 years, depending on how severe they were and where you live. A driving record will not show information about parking tickets. In addition, you can request a copy of your driving record from the DMV.

Why do Insurance Companies Check Driving Records?

Insurance companies will want to save themselves as much money as possible. They are trying to determine whether you are a safe driver or whether you pose a significant risk on the road. If you are a safe driver, you are not likely to get into trouble and make a claim on your policy. If you are higher risk, on the other hand, you will receive a higher insurance quote. You might also consider Compulsory Third Party Insurance or CTP Green Slip. This type of insurance will cover the cost of the third-party compensation claim. 

By looking at your history, insurance companies can determine your risk factor. They will also take your age, education, and years of driving experience into consideration when calculating your insurance quote. 

What to do About an Unclean Driving Record?

Unfortunately, there is no way to make a driving offense disappear. If you have received a citation, your insurance rates are likely to increase. It is important to be careful and try to avoid future incidents after this, or your rates will only climb higher. You can reduce your premium again, but you have to keep your record clean until the incident gets expunged. Stay aware of when your ticket is due to expire because you can then speak with your insurance agent about reducing the amount that you pay.

What Else Do They Check?

Some people are unaware that insurance companies will examine criteria other than your driving records. It is not uncommon for agencies to review your credit report as well. This gives them an idea of how well you stay on top of your bills and payments. Furthermore, if they see that you have lots of debts and late bill payments, they will charge you a higher premium for insurance. 

Insurance companies will also examine your criminal record. This includes driving offenses, such as DUIs and hit-and-runs, but also other crimes as well. Accordingly, they will decide whether these non-driving-related crimes will factor into the cost of your insurance premium

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