By Dez Duran-Lamanilao
There are many factors impacting vehicle insurance premiums, including the value of the vehicle, mileage, where you live (urban areas cost higher rates due to higher risk of theft, vandalism and crashes), and your credit history and financial capability. Sometimes to encourage safe driving, insurers also consider drivers who have taken additional safety courses.
For boat insurance, a key factor will be the years no claims bonus. The less number of claims you make for a certain number of years, the less your final insurance cost will be. Other optional factors may include breakdown and contents cover, among many others.
And that is not all. If you ever wondered why you have to supply your motor vehicle reports (MVR) during the application process, MVR will actually also affect the insurance premiums that you have to pay.
Aside from your personal details, the driving history will contain the following information:
- Past and present license suspensions, revocations and cancellations
- Driver’s license class
- Special driver’s license endorsements
- Any license restrictions
- Traffic violations such as traffic citations, vehicular crimes, accidental reports, and DUI convictions
Since you probably are not looking forward to seeing your MRV pages filled to capacity, the best way to avoid this scenario is to drive safely. While this is an obvious solution, some drivers will not be able to avoid incurring these records. Ask your insurer about enrolling in a defensive driving course to lower your insurance rates and remove points from your driving record, which for example in Alabama, can go back to as far as three years.
Insurance is a common consideration in getting your MVR. However, there is a possibility of errors occurring on your driving record; thus, to avoid an increase in your insurance premium or driver’s license suspension, check your record now and avoid future inconvenience.