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Impact Of Driving Record On Motor Insurance Premiums
Oct 9, 2023

How Your Driving Record Affects Your Motor Insurance Premium Rates

Due to the increasing number of road accidents, you might not be able to predict when your car may get damaged or cause damage to a third party while on the road. What this means that a vehicle owner should not take the need for motor insurance lightly. When it comes to getting one, a key factor that determines the premium amount is your driving record. Let’s understand how a driving record can impact your car’s insurance policy premium.

 What is a Driving Record?

A driving record is essentially a record of your driving hi­­story. A driving record is formed when you start driving or riding a vehicle. The record details about any violations which might have been committed by you while on the road. This could include not following signal etiquettes, overspeeding or overtaking, and not wearing a seatbelt or helmet. However, it also includes any accident caused by your vehicle or any damage to public or private property caused by your vehicle. This information is maintained by the Regional Transport Office (RTO) in India and is used by insurance companies to determine the premium amount.

Connection between driving record and motor insurance

A driving record can have a significant impact on the premium amount of a motor insurance policy. Insurance companies consider drivers with a good driving record as low-risk and are more likely to offer them a lower premium. On the other hand, drivers with a poor driving record are considered high-risk and are more likely to be charged a higher premium. This comes down to the amount that the company will have to disburse as compensation after a claim has been filed by you. A bad driving record makes you a liability for the insurance company. Whereas a good driving record means that you are less prone to cause accidents*. 

Factors Insurance Companies Consider While Evaluating a Driving Record

Insurance companies evaluate your driving record based on several factors, including:
  1. Traffic Violations

Insurance companies consider the number and type of traffic violations committed by you when driving the car. These violations include speeding, drunk driving, and running red lights. Drivers with a high number of traffic violations are considered high-risk and are charged a higher premium*.
  1. Accidents

Insurance companies also consider the number and severity of accidents the driver has been involved in. Drivers who have been involved in multiple accidents, especially accidents which have caused considerable damage are considered high-risk and are charged a higher premium*.
  1. License Suspension

Insurance companies consider whether the driver's license has been suspended or revoked. The reason for having your license suspended or revoked depends on the severity of the violation caused by you when behind the wheel. Drivers who have their license suspended or revoked are charged a higher premium*.
  1. Driving Experience

Insurance companies also consider the driver's driving experience. Drivers with more driving experience are considered low-risk and are more likely to be offered a lower premium. If you are new to driving, the offered premium could be slightly higher*. It is important to remember that a bad driving record might also hamper your motor insurance claim process. The insurance company may consider your driving history before disbursing the claim amount. The decision of accepting the claim  basis your driving record is at the discretion of the insurance company*.

How can you improve your driving record?

If you wish to improve your driving record for insurance purposes or more, you may consider the following ways to do so:

-  Follow Traffic Rules

The most effective way to improve a driving record is to follow traffic rules and avoid traffic violations.

-  Attend Defensive Driving Courses

Attending defensive driving courses can help drivers learn safe driving techniques and improve their driving skills*.

-  Install Safety Features

Installing safety features in the vehicle, such as anti-theft devices, can reduce the risk of accidents and lower the premium*.

-  Maintain Road Safety

Following all the rules of driving and maintaining road safety allows you to have a smooth driving experience. Driving in the proper lane, adhering to the speed limit, and giving indicators while taking turns are some of precautions which come under road safety. Taking such precautions can lower your premium.*


As you can see, a driving record is a crucial factor that determines the premium amount of your car insurance. It is important that you maintain road safety, follow all the rules and regulations when it comes to driving your car. Being a good driver is not limited to just being aware of the law; it also includes maintaining your policy. When you renew motor insurance on time, you get to enjoy its various benefits and you also abide by the Motor Vehicles Act as well.   *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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