Insurance companies use your driving record to calculate the appropriate cost of providing you auto insurance. Generally, those with cleaner records receive cheaper coverage. Periodically, companies will recheck a driver's record.
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According to automobile reference website NadaGuides.com, insurance companies check your record when you apply for a new policy, when you attempt to renew your policy, or when you attempt to modify your policy, such as when adding a new driver or vehicle to your coverage.
Insurance companies attempt to estimate the statistically likelihood that a person they cover will cause them to issue a large payout. Generally, people with driving records marred by accidents or citations are considered at higher risk of incurring a payout. Auto companies charge them more to make up for the greater risk of covering them.
According to the reference website YourOnlineInsurance.com, insurance companies have the right to inspect your driving record at any time they wish. Although the practice is not common, some insurance companies will conduct random inspections at times other than when they are issuing or renewing a policy.
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