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.