Car Insurance

In most states, insurance companies will not extend an insurance coverage offer to anyone before reviewing their DMV record. A driving record, while usually goes back for only a few years, can tell an insurance company two things… it can evaluate whether or not a person meets the minimum standards for insurability, and it can also be used to determine the level of risk a person poses to the insurance company. Insurance companies are businesses, and they must be profitable in order to survive. Therefore, they must evaluate how much money they could lose on a potential client and then determine if it is worth their while to offer insurance coverage to that person. Obviously, a person who has a long history of at-fault accidents, may not be the best risk for an insurance policy, because the likelihood of another at-fault accident is high. In some cases, DMV records will not affect whether or not an insurance company will offer insurance coverage. In fact, some insurance companies advertise that they will extend insurance coverage to anyone, no matter what their driving record.