If you’re shopping around for car insurance, you may wonder how much your driving history will factor into your rate. You may have had an accident or two in recent years and are worried about the effects that will have on your insurance.
Some insurers will only look back a few years, while others may go all the way back to your earliest driving record. Here are some of the best companies that normally ask for 3 years of history, though major violations may still be considered within 7 years.
WHY DO SOME CAR INSURANCE COMPANIES ONLY ASK FOR THREE YEARS OF HISTORY?
Before looking at the best companies that only ask for 3 years of history, it’s important to understand why some companies do this.
- State Requirements: One reason that car insurance companies only ask for three years of history is that most states only require insurers to use the most recent three years of a driver’s history when setting rates. For example, California requires insurers to use the most recent three years of a driver’s history when determining rates.
- The Slow Pace of Change: Another reason that car insurance companies only ask for three years of history is that insurers believe that a driver’s riskiness changes relatively slowly. If a driver has been risky in the past, there’s a good chance that he or she will continue to be risky in the future.
- Events That Fall Off Your Record After Three Years: Finally, another reason that car insurance companies only ask for three years of history is that some events (such as accidents and violations) may fall off a driver’s record after three years in some states.
As you can see, some car insurance companies only ask for three years of history for a few reasons. Despite these reasons, it’s still important to shop around and compare rates from different car insurance companies before you decide which one to choose.
CAR INSURANCE COMPANIES THAT TEND TO ASK FOR 3 YEARS' HISTORY
Out of the biggest names in auto insurance providers, there are a couple of companies that tend to ask for three years of history: Progressive and State Farm.
Progressive Auto Insurance
If you’re looking for a car insurance company that looks primarily at the last three years’ history, Progressive is a great option. They’re known for their competitive rates and several discounts available.
That’s why it’s worth checking out their website to see if any of them apply to you. And if you’re looking for even more savings, be sure to check out their discounts page — there are several ways to save.
State Farm Auto Insurance
State Farm is one of the largest car insurance companies in the country, so it’s no surprise that they offer great rates and coverage options. They also have several discounts available.
BENEFITS OF 3-YEAR HISTORY AUTO INSURANCE COMPANIES
For car insurance, most companies will ask for at least five years of history in order to provide you with a quote. However, a few companies out there only require three years of history, excluding the two mentioned above. These companies are usually new startups that are trying to gain market share.
Companies requiring only three years of history are usually more lenient regarding rating increases. If you have a clean driving record, your rates will most likely not increase. However, if you have accidents or violations on your record, your rates will most likely increase with a traditional company.
Another benefit of short-history auto insurance companies is that they are usually cheaper than traditional companies. This is because they are trying to gain market share and know that price is a significant factor when choosing an insurance company. Short history auto insurance companies are also usually more flexible regarding coverage options.
If you’re looking for a car insurance company that only requires three years of history, there are a few things that you should keep in mind. These companies are usually more lenient with rating increases, and they are cheaper than traditional companies. They’re also usually more flexible with coverage options. Remember these tips when shopping for car insurance and you should be able to find a company that meets your needs.
If you need help finding the best car insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.
