How your driving record affects your premium
If you have a perfect driving record, you might not even realise how big of an impact your driving history has on your car insurance premium. On the other hand, if you've had a number of violations or accidents, you may be very well aware of how your driving record affects how much you pay for your car insurance.

The minute you file a claim with your car insurance company or the minute you receive a traffic infringement, you become a higher risk to your insurer. Because of this, your car insurance company will in turn charge you a higher premium when you file your first and any subsequent claims. If you have one too many claims, premiums will become the least of your worries and your insurance company may even choose not to renew your insurance policy at all.

If you do have a number of accidents and/or infringements and your car insurance company does cancel your insurance policy, it is possible to get insurance through a high-risk car insurance company. The only problem with this type of insurance policy is that it can cost you up to five times more than your old policy would have cost you had you not filed so many claims with your insurance company due to accidents and violations.

On the other hand, car insurance companies reward drivers who are safe and do not file any claims. If you file no claims with your car insurance company and you are a safe driver you will be eligible for discounts off of your premium, saving you money on your car insurance. This is called a no-claim bonus.

Contrary to popular belief, auto insurers do not just rate drivers as "good" or "bad". Car insurers rate drivers from 1 to 6 with a rating of 6 being the lowest. As your rating improves, your insurance premium improves.

It is always a good idea to ask your insurer what rating they are giving you and if you are at a bad rating, ask what can be done to improve your rating. Over time, you may be able to improve your rating if you file no claims and drive safely.