8 in 10 drivers access programs that obscure poor driving history, study says
More than half of major driving offenses are dismissed or downgraded in some states, a TransUnion study says.
Information from a new study conducted by TransUnion claims approximately 8 in 10 consumers have access to programs that can obscure their driving history, which can mask poor behaviors and past violations. More than half of major driving offenses are dismissed or downgraded in some states, TransUnion found, which can disguise consumer driving history.
The findings from the study, Violation Downgrades and Dismissals: What Can Be Done?, observed 39 million violation records from three states and found these drivers have access to programs that remove or reduce their ticket violations, including DUIs, which may have adverse impacts on both insurers and the insured alike.
The study’s findings raise serious concerns for insurers who may be missing the risk associated with the original violation when tickets are repeatedly downgraded or dismissed.
A serious loss risk for insurers
This could have major impacts on insurance premiums for all consumers nationally, as TransUnion’s study of court record violations found 57% of original major offenses in some states are unobservable by insurers due to dismissals or downgrades. The findings also showed that 41% of DUIs are likely to be dismissed. Driving without a seatbelt is dismissed only 10% of the time.
Mark McElroy, executive vice president and head of TransUnion’s insurance business unit, noted that the study’s findings show that the more serious the violation is, the more likely it is to be dismissed or downgraded.
The study also determined that drivers with dismissed and downgraded violations are more likely to have a loss and have a 1.7 times higher loss cost than drivers with a guilty violation.
“When insurers aren’t presented with the full picture, this can compromise how well premiums align with risk,” McElroy said in a statement. “This dynamic, in turn, impacts good drivers who then subsidize insurance premiums for risky drivers.”
Download the full TransUnion study on their website.