Brownie Points! – Why Do My Insurance Rates Change?
Grading and evaluation is a part of life. Everything from the work you do at your job to the lunch you made for your spouse to the way you drive to work is evaluated.When your driving is evaluated it goes on a formal driving record. This record helps insurance companies to know what kind of a driver you are. If you have a bad record then you might be labeled as a high risk driver. The less incidents you have on this record, the lower risk you are and most likely a low risk driver gets a lower premium.
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So, what affects this grade and what is irrelevant?
Moving violations, for example a fender bender, would go on your record as a negative aspect of your driving. Non-moving violations, like parking tickets, don’t affect this grade at all.
Now that you know about the grading system used, we can talk about how this affects your insurance rate. Not all companies raise or lower rates based on your driving record. Although a good driving record definitely would not hurt.
The companies which do change your car insurance rate based on your driving record do so using a point system. (again, another evaluation) This point system is different for every insurance company. There is no tried and true formula for how companies evaluate an individuals driving record. However a bad driving record may put you at risk for an increase in your car insurance rates.
You can learn a lot about how to save money on your next renewal or a new insurance account by visiting websites that offer free advice and resources related to this subject. Doing simple research on the internet or comparing quotes will allow you to make changes to save even more money. Don’t buy your car insurance from the first company you visit, as you can get a lot more for your money.
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