Car insurance, eh? Not exactly the most fun thing car enthusiasts have to deal with. But it’s extremely important and helps keep us safe. Of course, our need for it can make high costs sting even more. Here are the things that affect insurance rates the most.
The laws of your state
Where you are in the country will have an effect on certain areas of insurance policy. There may be vehicular laws in your state that place a different amount of blame on particular parties when compared to other states. And liability is pretty much everything when it comes to insurance! The laws will also dictate exactly what kind of car insurance you need. These are the minimum car insurance laws. One state may require you to cover things that another state doesn’t. This is why it’s important that you look into affordable auto insurance!
If you’ve ever been caught driving under the influence, then you’re going to be hit with higher insurance costs. But it’s not just a flat rate for having been caught. The rate at which car insurance costs will increase depends on how your particular situation panned out. And I’m not just talking about damage to the car, the property of others, or even other people. (Though, of course, those things won’t help.) The extent to which you were punished by the law will also be taken into account. If you were sent to jail, for example, you’ll be paying higher premiums than someone who didn’t for a similar offence.
The typical rate of car insurance increase for someone caught drink-driving is in the 15-19% area. What may surprise you is that reckless driving can push it up even higher, to the 20-25% range. Of course, this isn’t too surprising when you consider what reckless driving can describe. You may have been driving without a license, or racing in the streets, or even trying to escape the police. Reckless driving, as defined by the law, will always be considered a major traffic violation.
A history of fraud
Here’s a question you may consider odd. Have you ever committed insurance fraud? Well, I doubt you would tell me even if you had. But if you have, then your insurance company are going to find out. Insurance companies aren’t exactly keen on working with people who’ve, y’know, defrauded insurance companies. If you’ve ever had a legal dispute with an insurance company, this could very well affect your premiums.
You would think that speeding would be classed under reckless driving. But as I implied earlier, reckless driving generally refers to very specific violations of law. Speeding, of course, can’t always be referred to as reckless in the same way. You may have been going a few miles per hour over the speed limit. This will be seen as minor, and won’t increase your car insurance rates too much. (Unless you do it repeatedly!) If you’ve been caught going ten miles or so over the speed limit, then that can cause higher increases. And if you were doing something like 60 in a 30 because you wanted to test your car’s speed? Then you’ll probably want to go back up to “Reckless driving”.
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