Effects of traffic violations on premium rates


Auto insurance is very necessary to protect the vehicles on road, in the event of any unforeseen circumstances. Since auto insurance pays for the damages resulting from collision or other accidents, the driving record plays an important role in deciding the premium rates for an individual. Insurance premiums differ for every individual and it depends on a lot of factors. Most important factors deciding the premium rates are the model and the year of manufacture of the car, geographical location, and the driving record of the individual.

Every traffic violation has an impact on the driving record of the individual. Since the driving records are tracked actively by the insurance company, when the policy holder makes a violation it is recorded by the company. Depending upon the kind of violation, the premium rates of the policy holder will be increased until the driving record is cleared again. Every small traffic violation is counted as far as the insurance company is concerned. Making traffic violations makes the driver a risky one on the road, since the traffic rules were not correctly followed. There are many things related to driving that the policy holder can do, to avoid accidents on the road. Some of them are:

  • Taking defensive driving lessons to ensure safety on the road. This may prove effective in reducing the premium rates as well. Defensive driving ensures that the driver makes a correct decision when involved in confusing driving situations due to the fault of other drivers on the road.
  • Ensuring to drive well within the speed limits enforced. This helps in driving without getting traffic tickets. Traffic tickets, although minor offense can get recorded on the driving license, and may be the cause for the higher premium rates.
  • Ensuring never to drive under the influence is of utmost importance when it comes to following the traffic rules. Driving under influence is an offense that can cost the driver his or her license. Some insurance company may even deny the insurance policy to drivers who have driving under influence violation in their records.
  • Following stop signals, and other signs like yielding, lane discipline can all help in having a very clean driving record, which efficiently reduces premium rates.
  • Reckless speeding in sensitive zones like city limits, residential areas and school zones are all major traffic violations which can remain on the records for two to three years. This can make the premium rates go sky high until they remain on the records.

Other violations like parking tickets may not be recorded on the driving license, but following the parking discipline and all other minor rules helps in practicing good driving habits. Sometimes, even minor things like transporting heavy objects in cars and using cell phones while driving, when caught can be a fineable offense. Every small thing counts when driving on the roads and the policy holder must do everything in control to follow the traffic rules. Different states in USA have different rules, so learning about the rule that applies in the particular state before planning to drive there is important.