Each month when you receive you car insurance bill you wonder how is it possible to decrease your auto insurance rates in order to lower the monthly premium. Time and time again your annual insurance rates continue to go higher for no apparent reason. The vast majority of the auto insurance companies continually up your online car insurance rates to adjust for inflation or just to increase their profits.
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.
Auto Insurance Rates And Traffic Citations
Typically, those of us who have one minor traffic ticket listed on our DMV driving record will not pay much higher auto insurance rates. If you run a stop sign or if you are caught speeding but only 5 miles over the speed limit, you may incur a minimal increase in your insurance rates. However, if you receive many moving violations and the violations are serious in nature, your insurance rates will skyrocket.
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.
Serious traffic offenses also will hurt your car insurance rates drastically. You will see an increase in your rates of 10% to 25% for driving while intoxicated or under the influence. Think about how high your auto insurance rates could go if you combine a few major traffic violations and a DUI offense.
Time Spent Behind the Wheel
The time spent behind the wheel and the purpose for driving will normally impact your car insurance rates. The more time you spend behind the wheel the greater the chance you will have an accident. Long commutes to your job will increase your rates over drivers who have relatively short commutes to the office. Moving closer to your work may not be an option however you may be able to use your car less frequently by joining a carpool or finding a different way of commuting to your job.
In addition, if you choose to use your car in conjunction with your business your auto insurance rates will be adjusted. Insurance companies take this into consideration because of the additional risk involved and the possibility of having to settle a future claim. With auto insurance rates on the rise and there to stay, it is best to try all means necessary to reduce your online car insurance rates as low as possible.
