The law requires everyone to have some kind of auto insurance policy to legally drive a car. Millions of car accidents all across the country and over 30 million uninsured drivers have complicated the entire insurance industry and made the prices sensitive to even the smallest traffic violations.
Everyone gets a different auto insurance quote and the rates depend on a lot of factors. There are external factors such as the type of insurance company, coverage limit, the state you live in, etc to internal factors that include your driving record, deductible amount, etc.
Auto insurance rates are largely affected by your driving record. Any traffic violations you commit will be recorded in your driving record and it will increase your car insurance rates. But how and why? And what traffic violations increase insurance rates the most? Let’s find out.
Effect of Traffic Violations on Insurance Rates
Different types of traffic violations affect your insurance rates differently. While some traffic violations are considered minor and only slightly affect your insurance rates, major traffic violations can increase your insurance rates by a steep amount.
Speeding
Overspeeding can and will increase your auto insurance rates. Speeding is one of the most commonly committed traffic violations. There are a lot of other factors that also contribute to the price hike, but on average, speeding can increase your auto insurance rates by anywhere from 8% to 35%.
Illegal Turns
Making illegal turns, U-turns, etc can increase your price by a hefty amount. On average, the price hike for this traffic violation is around 20% to 25%. While 25% is not a “hefty” amount, paying almost $360 more just for a wrong turn does not seem worth it.
Failure-to-observe
Failing to stop at the traffic light can increase your insurance rates by almost 20% or around $300. That’s not all. In some states, this traffic violation can get you two points on your driving record and that can increase your insurance rates by a much higher amount.
Driving on the Wrong Lane
Just like taking illegal turns, driving in the wrong lane or in the wrong way majorly affects your liability and collision insurance rates. The price increase is also very similar to the price hike for illegal turns. Expect anywhere between a 20% to 25% increase after this traffic violation.
Distracted Driving
Distracted driving happens when you are driving a car while doing something else at the same time. This could include using your phone while driving (which is also the most common distracted driving case) or doing anything while driving. Even changing the song on the radio or talking to someone in the car comes under distracted driving.
Distracted driving can increase your insurance rates by 20% to 40% depending on what you were doing. Using your phone while driving increases your insurance rates the highest.
No Seat Belt While Driving
Driving without putting on your seatbelt majorly affects your Personal Injury protection and MedPay rates and has minimal effects on liability insurance/collision insurance. On average, this traffic violation increases your insurance rates by around 5% to 8%.
Expired Registration
Driving your car with the registration expired can increase your insurance rates by anywhere from 10% to 15%. This traffic violation does not affect your liability insurance or collision insurance rates by much.
Improper Passing
Improper passing is directly associated with an increased risk of accident and hence it affects your collision and liability insurance rates. Improper passing can increase your insurance rates by around 25% to 30%.
Rash/Reckless Driving
Rash/Reckless driving is one of the most impactful traffic violations for your car insurance rates, especially for your liability insurance and collision insurance rates. Since the risk of you getting in a car accident increases manifolds in reckless driving, on average, reckless driving would increase your insurance rates by almost 50% to 70%.
Driving with a Suspended License
Driving without an active and valid driving license is considered to be one of the most severe traffic violations. Depending on the state you are in and your insurance company, you can expect an increase in your insurance rates by around 60% to 70%.
There have been many cases where the insurance company has dropped the policyholder for driving with a suspended license.
Hit and Run
Hit-and-run cases include you hitting someone or someone’s car and then fleeing from the scene. N0t only hit and run can get you in a lot of legal trouble, but it can also increase your insurance rates by a huge margin.
Hit-and-run cases affect collision insurance and liability insurance rates the most. From the national average data, the expected increase in car insurance rates is by 80% to 100%. This means that you might have to pay double for your car insurance.
Driving Under the Influence
Coming to the most severe traffic violation of all, driving under the influence can destroy your hopes of getting affordable car insurance rates. A DUI charge is unanimously frowned upon by every auto insurance company and while the price hike varies from company to company, the price hike is always steep.
Driving under the influence is not only a traffic violation but also a felony. It also increases the risk of you getting in a car accident and hence, it majorly affects your liability insurance rates as well as your collision insurance rates.
For a DUI charge, you can expect a price increase of anywhere between 50% to almost 320%. The price hike depends on the state you reside in and your auto insurance company. For example, the price hike in South Carolina is around 50% after a DUI charge, and 320% in North Carolina!
State Farm increases the rates by only 40% following a DUI charge, while Geico hikes the price by over 150%. So it is important to choose the right car insurance company. Find here the best car insurance company that offers excellent coverage at the most affordable rates.
