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3 Ways That Driving Habits Affect Car Insurance Rates
September 4th, 2010
Car insurance rates are based on many qualifications. Some are out of the control of drivers, like their age, but others are influenced directly by the drivers themselves. Safe driving habits can lead to lower rates, while having accidents and traffic violations can dramatically raise rates for a car owner. There are three key areas that impact the rates that a driver can control: accidents caused by the driver, accidents that the driver is involved in but is not determined to be at fault, and tickets issued for moving violations.
The first major impact to insurance rates is at-fault auto collisions. An accident where it is determined that the insured is at fault considerably impacts rates. Insurance companies base the rate that they quote on how safely a driver can navigate through his or her day while driving. If a vehicle operator demonstrates a pattern of unsafe behaviors while on the road, an insurance company will raise rates. The insurer will more likely have to pay out on claims for a driver that has had many accidents than it would for a driver that shows a record of not causing accidents, so the company will charge a higher rate to offset the money it would have to pay in the case of an accident.
Collisions where the insured isn't at fault can also cause rates to rise, though typically not as quickly or as dramatically as when the fault lies with the insured driver. A single no-fault accident may not impact the quote, but multiple fender benders over time have the same sort of effect that at-fault accidents do. The insurance company will most likely have to pay multiple claims for that policy, so it will charge more to cover a driver in that situation.
Traffic tickets are a third major contributor to high insurance rates. Drivers that do not receive moving violations are generally considered to have safe driving habits, and they receive the best rates. Car owners that pile up tickets are quoted higher car insurance rates; the tickets indicate to the insurance company that the driver is more likely to be in an accident, which would then cost the insurer money to pay any claims that would result from such an accident.
There are many factors involved in setting rates for car insurance, many of which cannot be changed by the driver. The insured can make an impact in his or her day-to-day driving style, and in return, be rewarded with a discounted rate. In order to receive the best possible car insurance rates, drivers should develop safe driving habits. Avoiding accidents and tickets will drive down the quoted rates and help save money over time.
