Driving license and auto insurance are two very important documents for any vehicle owner. While the former provides authority to drive, the latter ensures to cover the loss or damage of property or person in case of theft, accident or any other unfortunate incident. The insurance companies take a premium from the owner to pay for the losses in case of any eventuality. The amount of premium is calculated on the basis of several factors such as:
- Price of the vehicle
- Model and make of the vehicle
- Age and Gender of the driver
- Geographic location
- Credit record of the owner
- Safety features of the vehicle
- Usage of the vehicle
- Condition of the vehicle
- Driver’s record and training’s
- Insurance history of the vehicle
- Discount eligibility on the basis of grades, employment, groups etc.
Every factor contributes to the calculation of the amount and a careful assessment can significantly increase or decrease the money to be paid for buying the auto insurance.
State Farm company prefer insuring the cars and vehicles with safe driving history and the drivers with good driving records because generally safe drivers will have lesser chances of any mishaps this will reduce the chances of company paying up for any damages. In other words, insurance companies prefer customers who have lesser tendency to claim for the insurance. This is the reason for high attention to driver’s records. A good driving record scores well and lowers the amount of the premium.
A bad driving history is not just about the accidents. It includes multiple factors that influence the degree of ‘indecent’ level in a driving record. These are:
- DUI (Driving under influence)
- Violations of traffic rules
- Careless driving
- Driving without appropriate license
- Driving an uninsured vehicle
- Accident history, Intensity
If you have some of the negative recordings in your driving history, you can still expect a decent premium by focusing on the other factors stated above and taking appropriate measures like:
- Good Credit Score– A good credit score assures that you are a responsible person who pays all dues in time and avoid any negligence or failure in commitments.
- Defensive Driving Course- Any course that help you improve on your driving skills proves your sense of responsibility towards safe driving. It shows you are keen to improvise yourself and shall be driving in a better way after the course.
- Record of appropriate details- If you ever had any accident, you should keep proper details of the incident such as the intensity of the accident, the reason, the loss, and the document regarding whose fault resulted in the accident. These records can help you to a great extent as it will determine if the accident was due to your carelessness or you were a victim of somebody’s fault.
- Safety measures in the vehicle- Everything that can help your vehicle stay safe in case of any clash or otherwise, adds to your score of getting a decent insurance. The availability of proper security lock, alarm, airbags and other features that ensure your vehicle’s safety will reduce the negativity caused due to your bad driving record.