How Your Driving Record Impacts Your Car Insurance Payment
Your driving record is among the most important factors auto insurance companies consider when formulating your insurance premium.
The average annual cost of auto insurance for a driver with a clean driving record -- one with no DUIs, accidents, or tickets -- is $2,706. That's well below the national average annual cost of car insurance, $3,017. That's because auto insurance companies consider drivers with clean records to be less risky to insure.
On the other hand, car insurance companies view DUIs, accidents, and speeding tickets as signs that a driver will be riskier -- and therefore more expensive -- to insure. The average annual cost of car insurance for someone with a DUI is $4,282, over $1,500 higher than what someone with a clean record generally pays, according to data provided by Quadrant.
To help drivers better benchmark their expected auto insurance costs, The Motley Fool Ascent has compiled data on:
- The average cost of car insurance for drivers with a clean record, with a DUI, with a speeding ticket, and who have been part of an accident.
- The average cost of car insurance based on driving record in all 50 states.
- The average cost of car insurance based on driving record by major auto insurance providers.
Key findings
- Receiving a DUI adds $1,363 per year on average to the recipient's auto insurance premium. That's $114 a month.
- Getting in an accident adds $353 per year on average to car insurance premiums.
- Having a clean driving record nets $289 in savings annually on car insurance premiums, compared to the national average premium among all drivers.
How an accident, DUI, and speeding affects your car insurance premium
| Driving record | Average premium | Percent of overall average |
|---|---|---|
| Accident | $3,284 | 109% |
| DUI | $4,282 | 142% |
| Speeding | $2,958 | 98% |
| Clean record | $2,706 | 90% |
| All drivers | $3,017 | 100% |
How your driving record impacts auto insurance premiums in all 50 states
In every state, the average cost of car insurance is lower than the overall state average among drivers with a clean record and higher for those who have a DUI.
DUIs are most costly in Michigan, where the average cost of car insurance rises by over $5,000, from $5,766 a year ($481 a month) to $11,163 ($930 a month) for drivers with a DUI.
In 28 states, the difference between the average cost of car insurance over the course of a year and the average cost for drivers with a DUI is over $1,000.
In addition to being the most punishing state, Michigan rewards drivers the most for having a clean record. The average annual cost of car insurance in Michigan for drivers with a clean record is $4,664 ($389 a month), which is $1,102 cheaper than the overall state average.
In every state, the added car insurance costs from getting a DUI are multiple times more than the savings gained from having a clean driving record.
How your driving record impacts auto insurance company rates
Major auto insurance companies on average will set higher premiums for drivers with a DUI and those who have been in an accident.
| Auto insurance company | Accident | DUI | Speeding | Clean record | Overall average |
|---|---|---|---|---|---|
| Auto-Owners | $3,414 | $5,414 | $4,002 | $2,807 | $3,297 |
| Farmers | $3,465 | $3,553 | $3,245 | $2,968 | $3,119 |
| Nationwide | $3,153 | $4,560 | $2,629 | $2,431 | $2,770 |
| Farm Bureau | $3,079 | $4,075 | $2,636 | $2,292 | $2,616 |
| State Farm | $2,701 | $2,837 | $2,567 | $2,541 | $2,595 |
| Geico | $2,287 | $3,665 | $1,943 | $1,750 | $2,044 |
| USAA | $1,976 | $2,649 | $1,685 | $1,508 | $1,706 |
Auto-Owners auto insurance punishes drivers with a DUI the most relative to the average cost of car insurance. A DUI tacks on an additional $2,117 on average per year to a car insurance premium from Auto-Owners.
Auto insurance companies punish drivers less for getting in an accident. Major companies raise premiums by less than $500 a year on average for those who have been in a wreck.
For having a clean record, big auto insurance companies shave between $50 to $500 off their premiums, relative to what the average driver pays over an entire year.
Lowering your car insurance payment with "good driver" programs and discounts
While avoiding accidents and not driving under the influence are surefire ways to avoid expensive auto insurance hikes (and other financial and legal headaches), car insurance companies may also offer discounts for drivers who take a defensive driving course.
States and companies have different eligibility requirements for the defensive driving discount, so research what's available to you locally. State Departments of Public Safety or Motor Vehicles will have resources on certified courses. In some states, the defensive driving discount is only available to senior citizens.
Most defensive driving discounts range from 5% to 20% of the policyholder's premium. With courses costing between $20 to $40, they're usually worth the time and money. Plus, not only can defensive driving courses lower your premium, they can also teach you to be a better, safer driver.
Our Research Expert
Jack Caporal is the Research Director for The Motley Fool and The Motley Fool Ascent.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.