How Bad Driving History Affects your Insurance Premium Rates?


Although auto insurance is too expensive, but if you are an aggressive driver, driving with a blood alcohol concentration level over zero, then bad driving history inflates your auto insurance premium. When you are going to purchase auto insurance, many factors are taken into consideration. Not only your age, vehicle’s cost, your driving experience, but also your driving record that strongly impacts and determine the cost of your auto insurance.

Here we will understand how exactly does a bad driving history impact your premiums and what will be the penalty for bad driving history.

First we look at what are the illegal driving actions that may affect your auto insurance premiums. Insurance companies consider driving as illegal when the driver

  • drives without a license
  • drives without an auto insurance
  • drives with a suspended auto license
  • drives after intake of alcohol or drugs
  • indulges in stunt driving
  • drives without stopping at signals
  • does not stop at pedestrian cross walks or near school junctions

Generally, an insurance company will have a limitation, if you exceed that limit, your insurer will commence to penalize you. It may be driving 10 miles or thirty miles per hour over the speed limit. The higher the limit that is crossed, the more the penalty points. Each state has a different formula for penalizing violations. If you get a set number of points for a period of time, the state will suspend your license.

For instance in USA, the state of New York will suspend the license if a driver gets 11 points within 18 months. In California, the suspension of license can occur when a driver get even four points in a year, six points in 2 years and 8 points in 3 years of time period.

Most of the insurers will look closely as to whether you are a riskier driver to insure. So, beware of these driving habits and do not end up getting in a messy situation with bad driving habits.

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