A very important part of determining the price of car insurance coverage is the motor vehicle record of the driver. Insurance companies take many things into account when determining the price of coverage for an individual. Many factors that go into a pricing decision are based on statistics and averages which makes the most sense for the company. Insurance companies sell policies that help a driver cover costs of accidents and help drivers when they really need it. Companies have to look at a driver's age and experience level when determining cost of a car insurance policy. They also have to look at the type of car they will be covering along with the gender of the driver. Perhaps the most important factor when determining auto insurance prices is their motor vehicle record.
Everything a driver does that the police or the insurance company makes a note of affects the price of their car insurance plan. Every time a driver receives a ticket or makes a claim on their car insurance policy from an accident, it is recorded in their motor vehicle record. The more items that a person has on their motor vehicle record, the higher their insurance premium will be. These bits of information are important for insurance companies when determining prices because records make a difference. Statistically a person is more likely to get a ticket after they have already gotten a ticket. These things affect accident statistics as well, which is what really matters to insurance companies.
Tickets are a sign of unsafe driving practices. If a person has a few tickets, it means that they participate in behind the wheel activities that tend to cause accidents. Speeding is an unsafe driving practice that can cause accidents. When a driver does things like run red lights and text message while driving, accidents are also more likely. Even if a person has not caused an accident yet, tickets increase the probability that the driver will cause one. The other part of a motor vehicle record is accident history which also affects pricing.
Car insurance companies pay out in situations like accidents, so they take the accident history part of the motor vehicle record very seriously. If a driver is involved in an accident that caused them to make a claim on their auto policy, they are more likely to be involved in more. A car insurance company needs to cover their expenses, so they need to charge enough for a policy. The records are not held against a driver indefinitely. Accidents and tickets are removed from records after a few years so that a driver is not always held responsible for past mistakes.