May 27, 2010

Why Auto Insurance Companies Look At Your Mvr

When you obtain auto insurance quotes, you will quickly realize that premiums will differ for each person. This is because insurance companies use several different factors to determine insurance rates. These factors include the make and model of the vehicle, the territory you live in, the annual distance driven, and the driver’s personal insurance and driving history. In fact, the driver’s personal information is one of the most important factors considered.

When they provide you with auto insurance quotes, insurance companies will review your motor vehicle record. This is to determine several aspects. First of all, they need to confirm how long you have been a licensed driver. The more experience you have driving, the less of a risk you pose for the insurance company. A driver who has been on the road for several years will know how to handle certain traffic situations and scenarios, whereas a new driver tends to be less attentive and can find it difficult to evade a potential accident or collision.

Insurance companies also use this piece of information to determine if a driver has accumulated any traffic violations. These violations can be anything from a speeding ticket to an impaired driving charge. Each infraction can add surcharges to your insurance premium and some are more serious than others. These tickets and suspensions also show the insurance company how much of a risk you pose. If you constantly speed or drive with undue care and attention, the chances of you getting into an accident and having to file a claim are very high. An insurance claim can result in the insurance company having to dole out funds for repairing your vehicle as well as someone else’s. As well, they may have to dish out money for injuries to you, a passenger, or a pedestrian.

An MVR also shows the insurance company whether or not your license is currently valid. Of course, without a valid driver’s license, you cannot secure insurance for a vehicle. If you have been suspended, this will help determine insurance rates for your policy. A driver who has been suspended for the last two or five years will be considered a high risk driver as they have not been on the road for a long period of time. As well, many suspended drivers tend to drive anyway even though they have no license and thus pose a hazard to others on the road.

In order to reduce your insurance premiums, you should ensure that you maintain a clean motor vehicle record by not accumulating traffic violations, suspensions, or being involved in at fault accidents. Remember, these all stay on your record for many years, resulting in higher premiums.