Just as new- and used-car prices have skyrocketed in recent years, auto insurance rates are following in lockstep. According to the U.S. Bureau of Labor Statistics average premiums have increased by around 51% over the past three years. Bankrate.com says that makes the national average to cover a typical vehicle an annual $2,543, which is prohibitive for many families.
Experts say this can be attributed to record high prices for new and used cars combined with steeper costs for repairs. In general. The more a vehicle costs to replace or repair, the more a policyholder will be billed for coverage.
But that’s only part of the actuarial equation. A policyholder’s premiums are affected by an array of personal factors, including one’s gender, age, address and the number of annual miles driven. Perhaps most importantly, motorists having clean driving records will always pay less than those having moving violations and/or at-fault accidents on their records. According to a study conducted by the insurance website TheZebra.com, getting a moving violation can boost premiums by as much as 82 percent, depending on the severity.
Relatively minor infractions might not automatically hike one’s rates if it’s one’s first violation, and especially if the issuing body allows recipients to attend traffic school or driver-safety classes to keep tickets off their records.
Based on TheZebra’s analysis of 61 million auto insurance rates across the U.S., the citation that will most boost an offender’s rates is a hit-and-run violation at the aforementioned 82%. Meanwhile the tickets that will least affect one’s insurance premiums are failure to wear a seatbelt with a mere 4.0% hike and driving without headlights on at night at 3.4%.
We’re citing The Zebra’s list of the 15 costliest moving violations with regard to annual premiums below, noting the average hike in terms of both percentages and dollar amount increases. Of course, like everything else regarding insurance, these hikes will vary from state to state and one insurer to another. The website notes that a driver living in Pennsylvania could pay 15% more for premiums after receiving a speeding ticket, while someone in North Carolina could see their rates jump by 50% for the same violation.
And take note that the average rate hikes cited apply to just a single violation or at-fault accident. Those with multiple tickets or claims on their records will likely be subjected to even higher premiums or may lose coverage altogether depending on their severity.
Fortunately, there are ways to soften the blow should one’s auto insurance costs spike. For starters, shop around among multiple carriers to see which ones can provide a lower rate. Some companies are more willing to taking on certain elements of risk than others without overly penalizing policyholders.
Motorists can also save some money by raising deductibles for comprehensive and collision coverage, and dropping extra-cost add-ons like roadside assistance and rental car reimbursement.
Also, make sure the policy includes all of the insurer’s available and applicable discounts. These include rate reductions for covering multiple vehicles, bundling home and auto policies, paying annually or semi-annually instead of monthly, completing a defensive driving course and so on. Lower premiums can also be obtained by raising deductibles for comprehensive and collision coverage and dropping add-ons like roadside assistance and rental car reimbursement.
Needless to say, the best way to maintain affordable auto insurance premiums is to stay sober and follow the rules of the road at all times behind the wheel.
These Are The 15 Moving Violations That Will Trigger The Highest Auto Insurance Rates
1. Hit and run: +82.2% (+$1,209)
2. Refusing a breathalyzer test: +74.1% (+$1,089)
3. DUI: +73.9% (+$1,086)
4. Racing: +73.7% (+$1.084)
5. Reckless driving: +70.4% (+$1,034)
6. Driving with a suspended license: +62.4% (+$918)
7. At-fault accident: +42% (+$617)
8. Driving with an open container: +34.9% (+$513)
9. Operating a vehicle without permission: +32.8% (+$482)
10. Passing a stopped school bus: +27.0% (+$398)
11. Improper passing: +23.4% ($344)
12. Following too closely: +23.3% (+$342)
13. Speeding: +23.2% (+$341)
14. Failure to stop at a red light: +22.7% ($333)
15. Illegal Turn: +22.6% (+332)
Source: TheZebra.com.
