When you write your car insurance check every month you are probably wondering what in the world you can do to reduce your car insurance rates. It may seem to you that every year your rate goes up and sometimes this is true through no fault of your own; some insurance companies just raise their rates to keep up with inflation so that they can pay their own bills.
However, there are many factors involving your driving record that determine your car insurance rates. Many of us have some knowledge of what these factors are and their effect on car insurance rates, but it is important to review this data to be sure you thoroughly understand your situation.
Moving Violations and Auto Insurance Rates
In general, having just one minor ticket on your record is not going to affect your auto insurance rates quite that much. If you were speeding only a few miles over the limit or missed a stop sign, you may have a small increase in your rates by only a few percentage points. It’s when you have more than one ticket and they are considered major that you’ll really feel the pinch.
For instance, when you have a speeding ticket usually the insurance company will ask how much over the limit it was; less then 10 miles, 11-15 miles, or 16 and over. Obviously the person at 16 and over the limit is going to see higher car insurance rates than the person that’s less than 10. And just having one such ticket is not usually a big deal but having more than one in a three-year period is.
Major moving violations also will affect your auto insurance rates in a big way. DWI or DUI will increase your rate usually by at least 10%, and sometimes 25% or more. Now imagine what your auto insurance rates will be like if you have a DUI and a few tickets as well!
Additional factors that affect your car insurance rates are the amount of time you spend behind the wheel as well as the reasons for driving. The amount of time behind the wheel increases the likelihood that you will be in an accident. Traveling a long distance to get to and from work will cause you to pay a higher premium than the person who works from home or drives a short distance to work. You may not be able to change the location of your job, but you can consider using your car less by carpooling or even choosing an alternate form of transportation to get to work.
Also consider that the business use of your automobile will impact your auto insurance rates. This will increase the insurance companies risk to insure you thus increasing the risk of them paying a claim at some point in time. Every indication is that auto insurance rates will continue to climb into the future, it is important to consider all options available that will assist you in reducing your online car insurance rates as much as possible.