Your driving record is one factor that your insurance company uses to determine your insurance rates. Of course, we all want a clean driving record so are rates will be very inexpensive. But how can you improve your driving record or what factors contribute to a poor driving record and ultimately cost you money?

Accidents. If you have accidents within a 3-year period or even a 5-year period, then you are going to have to pay more. Why? Obviously because you are costing the insurance company more in repairs. Have you heard of the new accident forgiveness program? You pay 5% or more extra and your insurance company forgives you of the accident and keeps your rates the same. But guess what? Most insurance companies do this anyway. Have 1 accident and if you are lucky and have a good history with them, then its all the same. Have 2 accidents in a 3 year period and you are in big trouble.

Speeding tickets or other traffic tickets. Statistically, if you get a ticket, then you are going to be involved in an accident sooner or later. In some states, you get points added to your driving record for these violations. Some are pretty hefty and some dont have any points. If you accumulate too many points, then you will get your drivers license revoked. So, you dont want any points. If you get caught speeding, ask the officer if he could give you a hazardous driving or something that doesnt have points tied to it. Insurance companies look at your points.

Credit Report. What? Your credit report? Yes, if you are a viable citizen and pay your bills, then your insurance rates will be lower in most cases. If you dont pay all your bills on time and your credit rating is low, then you are statistically at a higher risk to the insurance company. I know it doesnt sound fair, but its the truth.

I know the statistics and numbers game isnt fun and you may think Im making this all up, but insurance companies hire people with math degrees and have them predict outcomes to figure rates. They are called actuaries. They use statistics to protect the insurance companys profits.

So what can you do? Dont speed or get any tickets. Wear your seatbelt to avoid another ticket. Pay your bills on time. And as mom would say, Be careful and dont have any accidents.