How does Driving Record Affect Car Insurance Premium?

Understanding Driving Records and Car Insurance Rates

The premium for Car Insurance is determined based on various factors like geographical location and cubic capacity of the vehicle. Apart from these factors, the insurance provider will also consider your driving record to determine the premium of the Car Insurance.

 

A driving record is the driving history of an individual. When an individual start to drive a car or ride a bike, the history of all traffic violations will be recorded. The violations will be taken into account while driving on road, not obeying traffic rules, overtaking on the wrong side, over speeding and not wearing a helmet or seatbelt.

 

Impact of Traffic Violations and Accidents

Traffic violations can affect your Car Insurance premium. For example, if you have jumped a signal or you get charged with a speeding ticket or ticket for not wearing a helmet or seatbelt. This can indicate a traffic rule violation and the policyholder will be classified under the high-risk category.

 

The higher the risk, the higher will be the Car Insurance premium. So, it is advised to follow all traffic rules and regulations, which have a positive impact on your Car Insurance premiums.

 

Benefits of Maintaining a Clean Driving Record

Maintaining a good driving record may not directly impact your Car Insurance premium. However, there are many advantages, if you're maintaining a good driving record.

 

Safe driving will help you maintain a clean driving record and reduces the risk of accidents. As a result, you will be placed under the low-risk factor by the insurance provider.

 

Also safe driving habits will reduce accidents and the claims in the year will be zero. So, your No Claim Bonus will be retained and you will get discounts on your Car Insurance premium. For example, if you do not claim for a period of 5 years, the discounts go up to 50%.

 

How to Check and Improve Your Driving Record?

Driving history may influence your Car Insurance premium. The importance of maintaining a clean driving record is not only limited to reducing your Car Insurance premium. But also be a responsible driver and not to cause any harm to fellow drivers on the road.

 

It is very easy to check your driving record. You can visit the nearby RTO (Regional Transport Office) and apply for the Driving Licence history or record. This will give you the history of all traffic violations if any or other black marks.

 

If you want to improve your driving record, consider focusing on these areas.

 

Traffic Rules

Traffic rules and regulations are framed to avoid accidents and provide safe roads Following the traffic rules, will help improve your driving record and also it will avoid road accidents.

 

Maintain Road Safety

Always adhere to the rules of driving. Maintain a safe distance from the front vehicle while driving on the road. This will give you enough time to react in case they suddenly stop and avoid a crash.

  

Maintain a stable driving speed. Do not over speed or drive slowly. By doing so you will not affect the traffic flow. All these safe driving activities will help you avoid any road accidents and you will be categorized as a safe driver.

 

Pay all your fines

If you have violated any traffic rule, fines will be charged and challan will be created. Once the challan is created, make sure to pay the fines before the due date and clear it. For example, if you receive multiple challans for jumping signals, you will have to follow look for the signals and wait till it turns green.

 

How to get a discount by driving safely?

Safe driving habits keep you safe on roads and also helps you get discounts. Driving safe prevents accidents, which will lead to no claims in a year. If you do not claim for a year, you will get a bonus for that and this No Claim Bonus points will get accumulated and while renewing your Car Insurance, you will get a discount based on your No Claim Bonus points.

 

Conclusion

Safe and mindful driving habit not only keeps you safe, but also helps you get discount on your Car Insurance premium. Also, it helps fellow drivers to be safe and prevents silly accidents on the roads.

 

Safe driving habits keep you safe on roads. Likewise, Shriram Car Insurance provides Comprehensive Car Insurance that safeguards you during unforeseen events. Additionally, Shriram Car Insurance provides add-ons like Roadside Assistance, Engine Protector Cover, Personal Belongings Cover, Key Replacement Cover and Motor Protection Cover. These add-ons provide complete coverage and also cater to your needs.

 

FAQS

1. What are the factors that can affect the Car Insurance premium apart from driving record?

The factors that can affect the Car Insurance premium are

• Safety devices

• Frequency of claims

• IDV (Insured Declared Value)

• Make and Model of the car

 

2. Will Car Insurance increase after making a claim?

Yes, the Car Insurance premium will increase after making a claim. This is because you might lose your No Claim Bonus when making a claim. Frequent claims can mark you as an “at-risk driver”, which will lead to an increase in the premium.

 

3. Will claiming for third-party liability affect my No Claim Bonus?

Claiming for Third-Party Liability will not affect your No Claim Bonus. Your No Claim Bonus can break if you claim for Own Damage. Third-Party Liability, is when you claim for damages and loss caused to a third party.