Everyone wants to save money these days, and the best way to save money is by controlling as many expenses as you possibly can. Car insurance premiums are a great example of a controllable expense, as careless drivers tend to pay far more than safe drivers do. By penalizing careless drivers with higher car insurance rates, insurance companies are able to reward safe drivers with rate decreases and other benefits, such as accident forgiveness.
Car insurance rates are based on not only the type of vehicle you drive, the area in which you drive the vehicle, and its safety features, but also on your personal driving record. Cheap car insurance is easy to find from a number of different companies if your driving record is spotless or at least contains no at-fault accidents. However, if you have tickets or accidents on your record, your car insurance premiums will be much higher. You may even find that no major insurance company will insure you at any price if you have a bad driving record, which would force you to go through high-risk auto insurance companies and pay even greater amounts for your car insurance.
Insurance companies calculate your car insurance rates based on several years of your driving record. Most will want to know up front if your driver’s license has been suspended or revoked for any reason at any time within the last 3 years. They will also ask if you’ve had any accidents, and most will go back at least 5 years on your driving record for this information. Any violations or tickets you’ve received in the last 5 years will also need to be disclosed so that the company can quote you the correct car insurance rates.
Even if you’re not shopping for a new policy or planning to do so, careless driving can still affect your current car insurance premiums. You are required to report any accidents you are in and any violations or tickets you receive to your current insurance company. If you don’t, you run the risk of being canceled by your insurance company. Whether your rates go up after a ticket or accident depends largely on your driving record and determination of fault. If you have a history of careless driving, you may see an increase in car insurance rates even after an accident that was not determined to be your fault, such as being rear ended. In extreme cases, your insurance company may even cancel your policy because of a careless driving record. This virtually eliminates your chances of obtaining cheap car insurance, so you should always be sure to drive safely today in order to save money tomorrow!
