MONDAY, MARCH 20, 2023
Your auto insurance premiums are based on many factors, including your claims history and driving record. Insurers use proprietary algorithms to determine your rates. Many insurers look at your records for the past three to five years.
You may notice a significant difference between quotes from different insurance companies. Your agent can help you get multiple quotes from reputable insurers to help you get the best possible rates.
Does Your Driving Record Impact Your Auto Insurance Premiums?
Insurance companies use your driving record to help determine the statistical likelihood that you’ll cause an accident. Insurers may see you as a higher risk if you have at-fault accidents and traffic violations on your record.
Minor violations may stay on your record and affect your car insurance premiums for three years. In Iowa, these violations may include the following:
- Running a red light
- Failure to stop
- Failure to yield
Failure to maintain control of the vehicle
- Driving without proof of insurance
- Texting while driving
- Major violations may affect your record for five years, and some may remain on your record indefinitely. In Iowa, these violations may include the following:
- Driving while under the influence (DUI)
- Speeding at more than 25mph over the limit
- Driving without a valid license
- Hit-and-run accidents or leaving the scene of an accident
- Reckless driving
Insurers typically look at your driving record and claims history for the past three to five years. Some insurers may have accident forgiveness programs that exclude a small, first-time accident from your premium calculations.
Multiple traffic offenses in a three-year period may trigger higher premiums, depending on your insurer’s algorithm.
Can My Insurance Company Drop My Coverage After a Traffic Violation?
Some insurers have a very low threshold for traffic offenses. If you must file an SR-22 form to prove that your car insurance meets Iowa’s minimum liability limits, your insurer may see you as a high-risk driver and drop your coverage or decline to renew your policy.
If you receive notice from a judge or the Iowa Department of Motor Vehicles (DMV) that you must file SR-22, contact your agent immediately.
One of the best ways to get the lowest possible auto insurance rates is to shop around for coverage with help from an independent insurance agent. Contact Elliott Hartman Agency in Waterloo, Iowa, to find the car insurance you need at a great rate.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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