How Insurance Rates Are Affected by Traffic Violations
Everyone knows that insurance rates are affected by traffic violations. However, unless you have suffered through one of these infractions before, you probably undershoot the overall rise in cost that a lot of these violations cause. The average driver vastly underestimates the amounts that insurance companies will charge if you get caught breaking the law. It is important to keep the consequences of your actions while on the road in mind in any circumstance. Staying aware of this will allow you to know that you will not have to suffer through the consequences that even the simplest of driving infractions can provide. Without further ado, here are how insurance rates are affected by traffic violations.
Insurance Company Matters
Before discussing how your rate will increase due to a traffic violation, you should know the basics of insurance rates. Every person’s rate is different, based on your driving history, age, gender, and what kind of car you drive. As well, every rate at a different company is going to be inequivalent. This means that you may struggle to tell how to detect a reasonable rate. Crucial resources provided by your state government can help you get more information on this if you need it. Throughout this article, we will reference specific percentages for insurance rate increases. Keep in mind that these are based on the national average that each US driver pays.
Why Get an Insurance Quote?
Your insurance company determines your rate through many factors, some of which you may not know. Every company might view you differently, and some may even provide packages that can help you with insurance rate inflation due to traffic violations. Even if you have several points on your license, some companies may even try to help you get a less expensive rate. Bear in mind that this sort of rate is cheaper for many companies to have points on your license, but it’s no less expensive than a normal insurance policy. Even so, getting an insurance quote is essential to understand your insurance rate situation fully. If anything, it will give you a jumping-off point of understanding what a good-better-best scenario looks like for you.
What Determines Rates of Insurance Increase
Now that we have discussed the reasons behind getting an insurance quote and the difference that companies make in the quote, we will move on to what determines rates of insurance increase. In general, companies look at several factors for each person when choosing a base rate. Under perfectly normal circumstances, they are determined by:
- Age: On average, mature drivers have fewer accidents than newer, inexperienced drivers. Insurers most often charge more for these younger, more inexperienced drivers.
- Location: Because of the higher risk of vandalism, theft, and accidents, most urban drivers pay a higher premium than those in smaller towns or rural areas.
- How much you use your car: The more miles you add onto your car through driving, the more likely there is for an accident to occur. Because of this, your insurance company may charge you more.
- Gender: Statistically, women get into fewer accidents, have fewer DUI’s, and overall have less severe accidents when compared to men.
- The car you drive: This is often a significant factor for the cost of insurance. Such variables may include the likelihood of theft, cost of repairs, engine size, and car safety record.
- Credit: Most insurers use a credit-based insurance score as a statistical tool to predict the likelihood that you will file a claim. The lower your credit score, the higher your insurance cost.
If you must undergo an insurance increase due to a traffic violation, this rate pairs with your driving offenses. Determining your new rate accounts for such things as:
- Whether or not it is the first offense.
- The type of traffic violation.
- How many prior tickets you have received.
- How much time has passed since you last received a ticket.
- Your age and experience.
Even so, none of this information has given you an accurate perspective of the amount each unique violation may cause you to incur. Here are a few common driving offenses and the average insurance rate inflation that you can expect.
- Driving without a driver’s license can cause as much as an 18 percent increase.
- A first DUI offense can cause as much as a 19 percent increase.
- Your increase for speeding depends on how fast you go:
- 1-14 mph over cause as much as an 11 percent increase.
- 15-29 mph over cause as much as a 12 percent increase.
- 30+ mph over cause at least a 15 percent increase.
- Improper turning generates as much as a 14 percent increase.
- Passing improperly produces as much as a 14 percent increase.
- Failure to stop at a stop sign or stoplight causes as much as a 15 percent increase.
- Careless driving invokes as much as a 16 percent increase.
- High-level offenses cause as much as a 20 percent to 40 percent increase.
How Long Until the Infraction Goes Away?
The main question that most will have after incurring a driving infraction is how long the violation will stay on their record. For the most part, violations are dependent on the insurance carrier. Some insurance companies may ignore minor infractions two years prior, while others may go back three years from an incident. Even so, a good driver who has not gotten into driving offenses for a set time will have the option to receive a good driver discount, which can outweigh the initial costs of the higher insurance rates.
While many do not know how insurance rates are affected by traffic violations, even less know about sr22 insurance coverage. Sr22 insurance is a vehicle liability insurance endorsement required by most DMV offices for “high risk” drivers. In many cases, DMVs may require the individual to get a sr22 certificate to reinstate their driving privileges following an uninsured accident or conviction of an offense. If you feel that you or someone you know will need such a certificate, contact Serenity insurance. We specialize in helping you obtain and file a sr22 certificate.