How One Infraction Can Increase Your Auto Insurance Rate

Why Is My Home Insured for More Than It’s Worth?Failing to wear a seatbelt might be the last of the once great “minor infractions” left, as just about anything else increases your premium by about 20 percent.

There may have been a time where minor traffic tickets didn’t do much to your insurance premiums. But those days are long gone, there is no such thing as a minor traffic ticket. MIA likes to point out that the annual cost of auto insurance has been nearly flat in recent years, only rising from $798 to $815 over two years. The Bureau of Labor Statistics notes that the cost of insurance eats up 2 percent of the income in low-earning households. This strikes many as surprising because low-income drivers typically have high premiums.

The insurance market has stayed relatively low, only increasing 10 percent over the last decade. To put that in perspective, food costs grew by 21 percent; housing expenditures rose 29 percent, and out-of-pocket health care spending increased by a whopping 52 percent! All drivers benefit from the robust market of auto insurance where they can shop for the best policy at a competitive price.

While it isn’t as expensive as other everyday expenses, it isn’t exactly pocket change, either. It gets significantly costlier, however, when you commit “minor” infraction. Things like not signaling, failure to yield, not stopping for pedestrians, failure to stop at a signal, following too close, improper passing and speeding can all increase insurance rates at an average of 20 percent.

Insurance premiums are determined by combining your driving record and other factors into an equation that measures low- and high-risk drivers. The results generated from the equation determine your risk level and your monthly premium. Statistically, people with infractions are considered a higher risk, which explains the increase in premiums: companies now see you as a liability.

Being a safe driver will help you avoid high auto insurance premiums! To learn more about how you can pay less for your auto insurance in Carlisle, Pennsylvania, contact Miller Insurance Associates.