Driving “DNA” Hikes Auto Insurance Premiums by 15% or More

Most of your auto insurance customers intuitively understand that if they act irresponsibly behind the wheel, it can cost them in the form of fines, legal fees, higher insurance rates, revoked licenses – or in the worst case scenario – loss of lives. But how many of your customers really understand how their driving records affect their insurance premiums?

Now is a great time to remind insurance customers about the importance of driving DNA. Help them understand the connection between their driving record and the cost of their auto insurance – and you may also strengthen policyholder satisfaction by helping them improve driving habits and slash premium costs.

What your customers should know about their driving record and their insurance rates: 

  • A driving record is like a driver’s DNA. It’s a record of a driver’s “vital statistics” (age, height, weight, date of birth, etc.), driving history and habits, violations, and accidents. With it, an insurance company can accurately determine if a driver is a low risk or a high risk and set the premium accordingly. 
  • As with credit reports, mistakes can be made on driving histories, so they need to be checked regularly for accuracy. One small clerical error can transform a clean record into one few insurance companies would want to take on, and change a less-than-perfect record into a strictly "high-risk" insurance situation. A traffic violation that should have been removed from a driving record can mean the difference of several hundred dollars on insurance rates. 
  • With most states adding points for violations and accidents, a driving record should be viewed like a golf score – the lower the score, the better. 
  • Drivers may be able to trim points from their records and lower their insurance rates by attending defensive driving courses, maintaining spotless driving records, hiring a lawyer if they believe they were ticketed in error, or seeing if their state offers the option of waiting it out and having the points dropped after a set number of years.

Give them some statistics.

According to Insurance.com, below are the 14 most common traffic violations and the average increase in insurance rates caused by each one: 

  1. Reckless driving:  22 percent
  2. Driving while under the influence: first offense: 19 percent
  3. Driving without a license or permit:  18 percent
  4. Careless driving:  16 percent
  5. Speeding 30 m.p.h. over the limit:  15 percent
  6. Failure to stop:  15 percent
  7. Improper turn:  14 percent
  8. Improper passing:  14 percent
  9. Following too close/tailgating:  13 percent
  10. Speeding 15 to 29 mph over limit:  12 percent
  11. Speeding 1 to 14 mph over limit:  11 percent
  12. Failure to yield:  9 percent
  13. No car insurance:  6 percent
  14. Seat-belt infractions:  3 percent

What about your agency DNA?

Just like a driving record is a “driver’s DNA,” your track record as an insurance provider is your agency DNA. Powerful insurance software puts a world of information at your fingertips so you can access vital records quickly and efficiently to stay focused on serving your customers and growing your business.

For an insurance software solution that will put “success” in your agency DNA, contact Agency Matrix today or download our agency management systems comparison sheet. With four great insurance software options, we offer the perfect choice for insurance agencies of every size and budget!

Topics: insurance agency software, agency matrix, auto insurance trends, insurance software, insurance crm, auto insurance customers, auto insurance premiums