How a Driving Violation Affects Your Insurance Premiums

How a Driving Violation Affects Your Insurance Premiums

Car insurance companies offer discounts to drivers who have a good driving history. On the other hand, if drivers have accidents in their driving record then it raises the car insurance premiums. Violations affect car insurance premiums in a negative way. Drivers with violations in their driving records pay almost double the amount of premiums than the drivers without violations in their driving records for an auto insurance policy.

MyMoneyMyQuote team is here for you to explain how violations affect car insurance premiums.

How much will car insurance premiums increase after a crash?

MyMoneyMyQuotes team has found the data of different states to give information about the effects of accidents on car insurance rates. We researched the data of drivers of an age bracket of 25-30 years who drive Toyota Corolla. If an accident happens and a person gets bodily injuries and damages to the property then it raises the car insurance premiums at an average rate of 1.42 times than normal rates. If damages are caused to only property due to accidents then car insurance cost increases at an average rate of 1.32 times. Suppose if car insurance premium cost you $1100 per year without any violations then you would have to pay $1320 for car insurance. If there is only property damage after an accident and car insurance premium would be $1420 when there is both property damage and bodily injuries.

Car insurance premiums are different for different companies. According to our data, violations affect car insurance premiums to rise at an average rate of 1.25 times in Pennsylvania but in Massachusetts, car insurance premiums go up 1.40 times. Geico charges 2.10 times more car insurance cost from the drivers with accidents in their driving records while State farm charges 1.26 times more car insurance cost.

Car insurance premiums after an accident vary from company to company and state to state. You should compare the insurance quotes from the different insurers to find the cheapest insurance policy.

What is considered an accident by insurance companies?

MyMoneyMyQuotes team has researched the data of different companies in Alabama state. We looked over the data of the following companies to find that what is considered an accident by the insurance company:

  1. Geico
  2. All state
  3. State farm
  4. Progressive
  5. Farmers 

Different companies determine accidents in different ways and rates for insurance premiums raise differently for drivers with violations in their driving records. 

Geico considers an accident when the driver is at 50% fault and the total coverage amount under collision coverage and property damage liability coverage becomes $ 760 or more. In-State farm an accident is considered when 50% fault is of the driver and total coverage becomes $490 or more.

Allstate considers an accident for new and old customers in different ways for determining the car insurance premiums. According to all states for new customers, an accident is when it causes bodily injuries and property damages. For existing customers who want to renew their policies, an accident is when coverage of damages becomes $490 or more. Farmers and Progressive look for new customers with 0% fault in an accident while for existing customers who want to renew their policies, Farmers consider accidents when coverage cost exceeds over  $392. According to progressive accidents are when a driver is at 51% fault.

What does not consider as an accident:

It is difficult to define what is not considered an accident. Most of the insurance companies set 50% percentage limits of faults to consider an accident. So, if your fault is more than 50% in an accident then your insurance company charges high car insurance premiums from you.

But some insurance companies provide information about what is not considered as an at-fault accident. 

  1. If an accident happens because of falling objects, animals, etc.
  2. If your vehicle is parked according to state laws and accidents happen it considers that you are not at fault. 
  3. If the driver received money to cover the losses due to an accident from another driver who is at fault.
  4. If the vehicle of a driver is hit by another driver vehicle who is convicted for not following the traffic rules.

Some companies do not follow these guidelines. Insurance companies consider accidents of a specific time period for determining insurance premiums. Mostly, companies evaluate the driving history of the past 3-5 years for the calculation of insurance premiums.

But this condition does not apply in some accident cases.

Other factors that influence insurance rates:

Most of the time you were found responsible for fault if an accident causes a huge amount of damages. If your state and insurance company provides accident forgiveness programs then you get a pardon for that accident. Otherwise, there are various factors that can reduce your chances of an accident on your rates if you are not covered under the accident forgiveness program.

Age:

 Insurance companies find young drivers risky, so they offer car insurance on higher premiums. Car insurance companies charge higher rates of premiums from young drivers with violations in driving records for car insurance. There are higher insurance rates for young drivers.  For young drivers in Alabama who just turned 18years rates hike is 10% less than the drivers above 25 years.

A number of violations:

Car insurance rates are increased with the number of violations in driving history of the driver. If a driver has had four accidents within the past 3-4 years then car insurance premiums increase by 2.25 times in Alabama and in Massachusetts rates of insurance premiums rise by 2.08 times. 

Clearly, we can see that based on this information, finding a good price with respect to coverages can be quite confusing and overwhelming for many. At MyMoneyMyQuotes.com, we help consumers find the right information to make better and sound decisions for their auto insurance needs. 

MyMoneyMyQuotes.com helps our consumers compare their auto insurance quotes online for free and find the best and cheap rates for their auto insurance policy.

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