Rate Increase

• Auto insurance companies typically obtain your driving history from your state's motor vehicle department at the end of each policy period. This allows the company's underwriters to reevaluate your policy to determine if you are still a manageable risk, and if the premiums you pay are appropriate for the risk of loss you represent to the company. A reckless driving citation on your credit history indicates to the insurance company that you represent an increased risk, and it may respond by raising your rates for the next policy term. The amount of the increase is dependent on your insurance company's rules and rating algorithms.
  
  

Policy Nonrenewal

• Depending on your insurance company's underwriting guidelines, the company may "nonrenew" your policy for a reckless driving citation. This means that at the end of the policy period, you will no longer have auto insurance coverage. You will need to find coverage through another insurance company, which may charge rates that are higher than those charged by your previous insurer.
  
  

Loss of Longevity Discounts

• Some auto insurance companies provide longevity discounts -- that is, they reduce your premiums by a specified percentage after you have maintained your policy for a certain period of time. In some cases, an insurer may provide a higher discount for each policy period during which you remain insured with the company. However, if the company nonrenews your policy for a reckless driving citation, you will lose these discounts when you start a policy with a different insurer. This can contribute to an increase in your auto insurance costs.
  
  

Considerations

• A reckless driving citation will not permanently affect your auto insurance rates. Most insurance companies typically only consider your most recent three to five years' driving history when evaluating your insurability and determining your premiums. After this time period, if you have maintained a clean driving record, your insurance company will typically lower your rates.