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Auto insurers use databases to look at past driving record

If you have a poor driving record of accidents or moving violations, you can expect to pay more for your auto insurance premium. Insurers look at your driving record when they set your premium.

This is nothing new, but new technology makes it far easier for insurance companies to track down your driving history using computer databases of records.

One company, Driver's History, Inc. (DHI), recently announced it has signed a deal with a New Jersey car insurance company to provide its data for risk management solutions.

DHI maintains "a unique and enhanced database of motor vehicle violation records," the company said. Auto insurers can use the database for verifying driving activity, detecting fraud and optimizing marketing.

Stephen Esposito, DHI's CEO, said DHI provides auto insurers with the capability to significantly reducing operating expenses by accurately pricing risk for bad drivers.

This is good news for good drivers - better risk models allow insurers to give higher premiums to bad drivers and better rates for those who are at a lower risk of filing a claim.

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