Driving to reduce the premium rates


Auto insurance premium makes up a big chunk of monthly budget for all drivers in USA since it is a mandatory requirement to drive. Naturally, every driver tries to save the amount that goes out to insurance companies every month. There are some factors which are not under the control of policy holders that can cause the premiums to go high, for example, geographical area of residence. But there are some things that the drivers can do to bring down the premium rates successfully. Driving record of every individual driver listed on the policy directly affects the amount that the driver pays as premiums every month.

When the driver listed on the policy makes a traffic violation, and is caught in the action and fined, it shows up on the records of the insurance company. Naturally, when the driver does not follow the traffic laws diligently, he or she becomes risky on the roads according to the insurance companies. This makes them to increase the monthly premium rates for those drivers who do not maintain very clean driving records. Every offense including a minor parking ticket can be recorded by the insurance companies and can impact the premium rate of the driver.

There are several traffic offenses ranging from minor to more serious ones that can affect the premium rates at different levels. Some of them are listed below:

Minor traffic offenses:

Speeding can both be considered a minor traffic offense or a major one depending upon the area and the number of counts that are over the allowed speed. Minor speeding gets a traffic ticket and no points out of the driver’s license. Parking tickets and missing signs can be other minor offenses that can get traffic tickets. Transporting heavy objects in the car in busy highways is also a fineable offense and can lead to high premium rates.

Major Traffic offenses:

Major traffic offenses not only give a traffic ticket to pay for, but also take out points from driving license. This can be reflected in the records for a long time to come, and can lead to sky high premium rates until the records are clean again. High speeding, breaking the traffic laws of any kind in sensitive zones like school zones can make the premium rates go high. Some traffic violations are so serious that it can make the insurance company revoke the policy and deny further coverage to the policy holder. One such traffic violation is driving under influence. Even before the insurance company can revoke the policy, the license of the driver caught in action is revoked.

Following traffic laws efficiently and keeping a clean driving record will earn good discounts for drivers for one complete year. Following traffic rules and driving safe not only reduces the risk for drivers on the road, but also keeps the policy holder safe and protected. Every policy holder wishes never to use the insurance policy, and through safe and careful driving it is possible to have a claim-free and worry free driving.