Insurance companies also use your driving record to decide whether or not they are willing to insure you, and how much to charge you for insurance if they do decide to offer coverage. From an insurance perspective, drivers who have too many accidents or violations on their driving record are "bad risks." Insurance companies believe that if you have a lot of points on your driving record, you are more likely to get in an accident and they are more likely to have to pay a claim. To make up for the increased risk, they raise your premium based on how many accidents and violations show up on your driving record. If they believe that your driving record represents too much of a risk, they may not insure you at all. 

By Texas law, third parties like insurance companies can only obtain your driving history for the past three years, so only accidents and violations from the past 3 years should affect your premium. Also, if you take a defensive driving course to get your ticket dismissed, your premium should not be affected. Taking a defensive driving course, like the course available from Driving University, can keep a ticket from causing your rates to jump. You may even be able to score a nice auto insurance discount with a copy of your certificate of completion-call your insurer for details.

Everyone who drives needs an auto insurance policy. It’s important to review the information on your driving record to make sure it's accurate so that you don't get overcharged for yours.