- Watch your speed to avoid insurance rate hikes.speed image by Kevin Chesson from Fotolia.com
Auto insurance is an expense that virtually all drivers must deal with. Rates on auto insurance vary widely depending on your state, age group and gender. Many different factors will cause insurance premiums to go up or down, but what happens while the driver is behind the wheel can often affect rates more than anything else. - Insurance companies give the best rates to drivers they feel are the least risky to insure. When a company checks your driving record and finds one or more speeding tickets or other moving violations, you can assume you'll be paying more for auto insurance in the near future, according to AutoInsurance.org.
Speeding is a moving violation and suggests the driver isn't concerned with obeying traffic laws and, possibly, that the policyholder does not always drive safely. This makes the driver a higher risk and the company will often raise his insurance premium in order to cover him.
An insurance company often takes an even dimmer view of those cited for reckless driving. This offense may result in rates even higher than those for drivers convicted of speeding. Less serious violations, such as parking violations, which are not directly related to safe driving, are less likely to adversely affect insurance rates. - Driving Under the Influence (DUI) is a criminal offense that can lead to fines, loss of license and even jail. If someone is injured or killed in an accident and the driver is arrested for DUI, it could result in a long-term jail sentence and a life-altering conclusion. Drivers convicted of DUI will, at a minimum, have to pay much more for insurance if they are able to get insured at all. An insurance company will often cancel the policy of an offending driver after his conviction and refuse to re-insure him later. Other companies may refuse to insure him as well.
While laws vary by state, most states require those convicted of DUI to obtain an SR-22 form from any insurance carrier that agrees to cover you. This form proves you carry at least liability insurance and allows you to get your license back once any license suspension time has elapsed. SR-22 insurance is extremely expensive in comparison to other policies with similar coverage. - Even if you are not at fault in an auto accident, your insurance rates can go up, according to AutoInsurance.org. Being at fault may cause a more significant increase, but it is not a prerequisite. On the other hand, even if you commit a violation that leads to a crash, such as running a red light and hitting another car, the rate increase is usually not permanent. In most cases you will be able to negate an accident-related rate hike after about three years. Another violation anytime in the future, however, will cause an insurance company to take a look at your entire history, and other incidents in the past can trigger a rate increase.
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