Car insurance companies use a number of tools to determine how much to charge you for insurance coverage. One of the most commonly used reports is the “MVR,” or “motor vehicle record.”
An MVR is a report that contains information regarding your personal driving record, including the tickets and accidents you have been charged with during your driving history. It is a national report that every insurance company has access to it and it follows you from state to state. A ticket you received in Georgia will be on an MVR if you move to Florida.
Essentially, the number of tickets and accidents you have correlates with the number of claims you are expected to file in the future. Ultimately, more accidents and tickets means your insurance company will most likely have to pay more money for claims you file (and vice versa). This is similar to how a credit report works. If someone has a proven history of not paying back loans, creditors will charge more interest on the money they lend, as it carries greater risk.
The type of car insurer you choose will determine how much of an effect your driving record will have on your car insurance rate. Preferred insurers typically review your driving record for five years. This means any ticket or accident you had within that time frame will likely bump up your rate. In some cases, an insurance company may deny coverage if you’ve had too many tickets or accidents.
If you do not qualify for a preferred insurer, you may look to a non-standard insurer, who typically looks at a three year driving history. Overall, they rate similarly to the preferred companies, but you can expect to pay more overall, as you represent a higher risk of filing a claim.
There are also companies that do not look at MVR’s when determining your car insurance rate. They assume a certain amount of risk per person who fits their program, and charge accordingly.
Additional reports used to determine your car insurance rates are the C.L.U.E. report, vehicle history reports, and financial responsibility reports. We recommend getting an online quote to determine if you are currently being overcharged for your car insurance.