How Far Back Do Insurance Companies Look – Each time we apply for insurance, the insurer takes a look back at our records before the insurance is issued. It is quite a bother to know how far back these insurers look. How far back these companies look varies. Some companies look back as much as 3 years or more. However, you will not be charged for anything during this process.
Your auto insurance premiums are based on different factors such as your claims history and driving record. Some insurance make use of proprietary procedures to decide your rates, while some insurers take a look at your records from the past three to five years.
Do my Driving Records Influence my Car Insurance Premiums?
Using your driving record, insurance companies determine the analytical likelihood that you will cause an accident. They may see you as a high risk if any traffic violations or at-fault accidents are detected on your record. Minor violations may remain on your records and affect your car insurance premiums for about 3 years. Some of these violations include:
- Failure to stop.
- Refusal to yield.
- Overspeeding.
- Not stopping at the traffic right light.
Finally, some other violations that may affect your car insurance premiums are:
- Text messaging while driving.
- Driving recklessly.
- Overspeeding over the 25 mph limit.
- Driving without insurance.
- Evacuating an accident scene.
- Driving a vehicle without a valid license.
Some violations can affect your record for five years, while some will remain for an indefinite period. However, some insurance companies have accident programs that remove small first-time accidents from your records.
Can my Coverage be Dropped by my Insurance Company After a Traffic Violation?
This depends on the insurer; some insurers have less of an approach to traffic offenses. Your insurer may drop your coverage if you have an SR-22 form to show that your insurance meets the minimum liability limits. You will be considered a high-risk driver.
Best Insurance Companies that only look Three Years Back
As mentioned earlier, every insurance company has how far back they look at our records. Varying from three to five years or more, there are a few insurance companies to consider when looking for insurers who look only three years back. Some of these insurers are:
- Farmers.
- Geico.
- Nationwide.
- USAA.
- American family.
- Travelers.
- Allstate.
- Liberty Mutual
State Farm and Progressive car insurance only look two to three years back at your records. Any insurance company that doesn’t look back at your records may be limited by the state statutes.
Why do Insurance Companies Look Three Years Back?
Insurers survey for serious driving violations such as DUI convictions and at-fault accidents on your record. They check back to know if you will be considered a high risk or not and check out every other issue to be considered. Due to this, most companies look back five years or more.
How do Insurance Companies Use my Driving History?
Your driving records correspond to risk. If your driving records are clean, then there is a chance you will likely not file for an insurance claim. If there’s any violation on your record, it shows a higher chance of an insurance claim being filed. However, any driver with too many violations on his/her record is considered a high risk.
What makes a driver a high risk to insurance companies?
As stated earlier, a driver who has too many violations or has been involved in too many accidents on record is considered a high risk. When a driver is considered a high risk, the state requires them to get an SR-22.
This high-risk driving status can last for about three years under SR-22. If after this, the driver is still considered a high risk, they will need to reapply for an SR-22. Any driver who doesn’t get certified will lose their insurance coverage and will be reported to the state’s DMV by the insurance company.
How Long does High-Risk Car Insurance Last?
High-risk insurance lasts three years at the maximum; then DUIs may extend your risk for as long as 10 years. However, this depends on when your SR-22 is certified.
Do Insurance Companies do Background Checks?
One of the dynamic things insurance companies do is to make a background check for brokers/agents or pre-employment screening. This step is usually taken to break off crimes prone to occur. This way, they can ensure that there will be no future occurrence that will affect your insurance.