Traffic offenses and their impact on premium rates


Auto insurance is a mandatory requirement when driving on the roads of USA. Since every driver has to have insurance, it is a big business and there are many companies to choose from. Finding the insurance policy that does not cost a fortune is the challenge that many vehicle owners face. There are many factors that the auto insurance premiums depend on. Some of them are not in the control of the policy holder, like the geographical area of residence, and the statistics that the insurance companies follow in order to decide the premium rates. But there are some factors that the drivers can control, like following the traffic rules.

Different states have different insurance requirements, and the premium rates are priced differently. But the one thing that is common is the fact that with the increase in traffic offenses, the premium rate of the individual is hiked regardless of the policy chosen. Some of the traffic offenses that have a direct impact on insurance premiums are listed below:

Driving under Influence:

Driving under influence is one such traffic offense that can get the license of the driver suspended. Even when the driving under influence is recorded on the license and is a past offense, many insurance companies deny the insurance policy to the driver. If the license is not suspended, then the insurance premium can escalate to sky high rates, which cannot be affordable anymore.

Missing signs and signals:

Missing signs can be minor offense if there is no oncoming traffic, but in the city limits and crowded streets this can be a major offense. Stop signals, yield signals, no ā€˜uā€™ turns, and other signals can be easily missed if the driver is not paying attention on roads. When caught jumping these signals, heavy fines can be imposed depending upon the area and the time of the day. Insurance companies consider it a pointer to the fact the policy holder is a risky driver and the premium rates are increased accordingly.


Sometimes, speeding two to three counts over the set speed limit is a common thing. But reckless speeding is both a costly mistake and can be dangerous to other drivers on the road. Especially in sensitive zones, school zones and city limits, reckless driving incurs heavy fines and several points on the driving license. Along with a costly speeding ticket, the points on the license can stay for two to three years, which can cause a steep increase in premium rates. When driving, the policy holder must pay attention to the area in which the vehicle is driven and the speed limit set. Avoiding traffic tickets can help in paying steady premiums and reduce the rates in future.

Having no traffic tickets for a complete year, and maintaining a good driving record throughout, can earn good discount points for the next year. Premium rates can really be manageable when these discounts are applied. Good drivers not only pay less for their insurance, but can also remain safe on the roads by following the traffic laws.