Insuring cars is very necessary for the prime reason of protecting them in the event of damages due to collision. Insurance companies pay out the decided sum of money to the damaged cars in order to repair the damages, or replace the car in case of irreplaceable spare parts. Naturally, the premium rates of the insurance companies depend on a lot of facts that has to do with the individual’s driving records, and the driving conditions of the particular area. Driving record and traffic rules are one of the deciding factors of the insurance premium rates, and the reason why the premium rates of two different regions is never the same.
Driving conditions is not necessarily in control of the individual applying for the insurance, but most definitely, the driving record of every individual is his or her own responsibility. A bad driving record means high monthly premium rates until the records are set right. Cleaner records on the other hand classify the individual for added discounts that the insurance companies provide in order to encourage the individual to follow traffic rules diligently. Insurance companies come to know immediately if there are any violations caused by the policy holder. They put the driving record of every policy holder through thorough checks periodically, and alter the premium rates accordingly.
Every single traffic violation has an impact on the insurance rates. Below listed are some traffic violations and how they affect the insurance rates:
Minor Traffic Violations:
Minor traffic violations like parking tickets, using the car for transportation of heavy objects, failure to follow the yield signs, and failure to follow the stop sign boards can earn a traffic ticket and affect the premium rates. Although they seem minor, these offenses may turn out to be serious ones if the traffic from the other side fails to notice the violator. This can lead to collision and consequently the claims that the insurance company must fulfill.
Serious Traffic violations:
Traffic violations that immediately earn points on the driving license are more serious in nature and can cause the license to be suspended sometimes. These traffic violations will more certainly end in undesirable circumstances, and are blatant to the eyes. Speeding recklessly on low speed limit roads, driving under influence, reckless driving in sensitive zones like school limits, or city limit roads all earn points on the driving license and cause the premium rates to go high. These offenses remain on the driving record for over two years and therefore can hold the premium rates high for a long time. Driving under influence will definitely cause the license to be suspended, so there is no question of driving when caught in the act.
Although these traffic violations can cause a steep increase in the license, following the traffic rule and making a conscious effort in cleaning up the record is duly recognized by the insurance companies. Corrective driving lessons and defensive driving lessons can be taken to reduce the increase in the premium rates. Driving safe is not the only important aspect of remaining safe on the road. Avoiding unsafe drivers on the road is also equally important.
