Driving safe is something that insurance companies love their customers to do. It saves the insurance providers a significant amount of money if their insured clients do not ever have accidents. Thus, they tend to favor safe drivers with lower policy premiums and incentives like a disappearing deductible for each year they do not file an auto accident claim.
On the other hand, those who are involved in car accidents or who have received a moving violation may be due for a car insurance increase when it comes time for the annual policy renewal. If a car accident involved little or no property damage, there may not be a car insurance increase in the premium. Moving violations, in most cases, do trigger an increase in car insurance.
Factors That May Cause Car Insurance Increases
- Type and number of moving violations you receive
- Seriousness of a car accident that you are involved in
- Cost of the insurance claim you or the other involved driver files
- Your level of fault in the car accident, unless you live in a “no-fault” state
- Appearance of the moving violation on your Motor Vehicle Report (MVR); or the accident on the Comprehensive Loss Underwriting Exchange (C.L.U.E.), which is a database that records claims information.
- Number of years you have been with the company without an auto accident
Minimize Moving Violation Cost with Safe Driving Courses
There are ways to minimize the “cost” of a moving violation. For instance, if you take a safe driver’s course to gain insight into driving safe, some insurance companies may decide not to raise your insurance rates. In some cases, your moving violation may be changed to a non-moving violation, so the insurance company will not raise your rates. Each company has its own set of rules for determining just what will trigger a car insurance increase and what factors go into determining driving safe benefits.
Driving Violations and Car Insurance Increases
Drivers with one-car, single driver policies whose driving record included one violation paid 18 percent more on average for car insurance then did drivers who had no moving violations, according to an Insurance.com analysis of more than 30,000 insurance policies purchased in 2010.
Those drivers with two violations paid 34 percent more for their auto insurance; drivers with three violations paid 53 percent more than whose drivers who had no violations. A DUI can result in an insurance company refusing to renew an insurance policy. It seems that driving safe pays off in more ways than one.
Types of Moving Violations Triggering a Car Insurance Increase
- Driving under the influence of drugs or alcohol – DUI
- Reckless driving
- Careless driving
- Fleeing from law enforcement officers
- Running red lights
- Driving the wrong way on a one-way or a divided highway
- Improper passing
- Lack of child restraint
- Unsafe U-turn
Does My Insurance Go Up Immediately? Generally, increases due to a moving violation or a car accident happen at the time you renew your policy. If you have not told your insurance agent about the accident or the ticket, it may take longer to have an impact. Eventually, your ticket or accident will be discovered. If you decide to switch insurance providers, a claims history or driver’s record will reveal any tickets or accidents.
How to Avoid a Car Insurance Increase
If you have received notice of a car insurance increase at the time of your renewal, you can speak to an independent insurance agent who will help you shop for less expensive insurance. Independent insurance agents generally work with a wide range of insurance providers, so they can help you find a car insurance that meets your needs and your pocketbook.
Questions about Your Insurance Policy?
Talk to an independent insurance agent who has a deep understanding of the issues involved in car insurance increases and the benefits of driving safe. Contact us today to learn more about getting the best insurance for the best rate available to you.