Driving, as well as the state laws where you reside could greatly affect the auto insurance premium that you might be paying. It is therefore important to be well versed with most rules, so that you don’t get any negative remarks in your driving record. This is important, because when you apply for auto insurance, companies invariably tend to check your driving record in the past, especially the last 2 or 3 years to check driving patterns and common driving violations. From this, companies tend to deduce whether you are a reasonably safe driver or not. If the chances of your being reckless and getting involved in an accident are high, you will be charged higher rates, specifically because the risk of your claiming for damages would be high.
This is commonly mandated across all states. Third party liability insurance has to be purchased by all vehicle owners, specifically to cover the costs of the other party involved in an accident. Interestingly, the actual coverage mandated by law varies from state to state, which is why even the premium that you pay will vary from one place to another. However, the insurance coverage usually includes 3 categories. There is a coverage limit for any damage to the property of the other party as a result of the accident. There is a different coverage limit for any bodily injury or even death of 1 person as a result of the accident. Lastly, there is a higher coverage limit in case of bodily injury or death of all persons in the other vehicle as a result of the accident. It is important to acquaint yourself as to what these coverage limits are in your state and purchase insurance accordingly.
Driving violations in the past
Your auto insurance rates will depend to a large extent on the driving violations you have committed in the past. This is because driving violations suggest a thing or two about how reckless you are while driving. The traffic laws vary a bit from state to state, which is why you need to be careful while driving. For example, in the State of California, you are not permitted to wear headsets on both ears while driving. Similarly, there are other rules like wearing seat belts, concurring to speed limits on the road, lane discipline, child safety and railroad crossing. There are special laws for distracted driving, driving under influence or texting while driving. Any such violation would leave a bad mark on your driving record, which would mean higher auto insurance premiums in the future.
Following the laws
There are two reasons why you should be well aware and follow laws of a state when it comes to your vehicle. Firstly, when you are caught in the act of violation of a law, whether it is related to drunk driving, speeding, no liability insurance or lack of proper license, you will be considered reckless and hence your insurance rates will be higher. Secondly, when you drive without awareness of law and meet with an accident, the repercussions are graver.