Does a Seatbelt Violation Raise My Car Insurance Rates?
One ticket for failure to wear your seatbelt will most likely have no impact on your current car insurance rates. However, if you continually disobey this law, your car insurance company may raise your rates or worse, cancel your policy. Of course, canceling your policy because you don't wear your seatbelt is not common, but it may be an option. Read your policy carefully.
The reason your car insurance company may ultimately raise
your rates is because seatbelts are associated with safety. If you choose to
not wear your seatbelt, you are placing yourself at risk unnecessarily. In
their eyes, you may be considered a high risk and this may lead to higher
premiums.
Failing to buckle up can cost you in other ways too. For
example, if you are receiving an additional discount based on safety features,
your auto insurance company may review your history and disqualify you for
things like safe driver benefits.
Car insurance companies want to insure safe drivers who
practice safe driving on a regular basis. This includes people who consistently
use seatbelts. Utilizing a seatbelt can provide a sense of security and can
also help reduce the number of serious accidents that occur as a result of not
using safety restraints.
What causes car insurance companies to raise your rates?
Aside from the usual cost of doing business, which is
generally minimal, you may receive an increase in your auto insurance rates if
you are involved in any type of motor vehicle violation that adds points to
your driver's license. Some insurance companies will start increases after as
little as two points are added. The amount of points and type of violations vary.
Some common offenses include:
Speeding
Reckless driving
DUI or DWI
Your rates may also be increased if you have too many
accidents that result in multiple claims. Each time you have a car accident,
you cost your auto insurance provider thousands of dollars, this often results
in a higher premium for you so they can try to recoup their losses from the
payout.
Depending on the severity of the infraction, your car
insurance company may raise your rates anywhere from 10 to 50%. You may also be
subject to policy cancellation if your violation is serious and leads to a
conviction.
Car insurance companies are well aware of your driving
history; this includes your offenses and violations. If your rates are
increased because of poor safety habits or other infractions, you will suffer
the burden until your record is clean with the Department of Motor Vehicles.
Do auto insurance companies lower their rates? If so, what
is it based on?
Car insurance companies may lower their rates in various
ways. Receiving a reduction in car insurance premiums is considered a reward
for having an excellent driving history. This usually includes zero car
accidents or moving violations resulting in points being added to your driver's
license. You may also receive a reduction in your annual premium if you utilize
safety devices such as:
Alarms
Ignition kill switches
External security mechanisms like steering wheel locks
When you take the time to ensure that your vehicle is
protected, your car insurance company may recognize your effort and reward you.
Another way your rates can be affected in a positive manner
revolves around the way you pay your premium. Some insurance companies actually
offer you a discount if you pay your bill in full rather than in monthly
installments. You may also have the option of paying quarterly and still
receive a break.
If my car insurance company raises my rates, should I stay
or should I look for a new one?
Before you go looking for a new automobile insurance
company, think about the benefits you have and if you are willing to trade one
or more for something else. Most people have car insurance for years and unless
you have a poor experience, you stay with them.
An increase in rates should not be the only reason you seek
out a new car insurance agency. First, consider the actual increase and decide
if it is justified. Next, review your benefits. Do you use them or are they
just part of a package deal? If your needs have changed and you require an
updated policy, can your current provider assist you?
Sometimes, it is easier to work with what you have. Maybe
your auto insurance company can adjust your current policy to fit your changing
lifestyle. Remember, they want to keep you as a customer, especially if you
have been with them for a while.
Do not panic just because receive notice that your premiums
are increasing. You should have enough time to review your options before you
make any decisions. You do not want to sacrifice a long, stable history with a
new company unless you know it has your best interest in mind.
Having car insurance is the responsibility of every vehicle
owner. At times, it can be costly, but it is a necessity. To help ensure a
consistent auto
insurance premium, do your part to become a safe driver.
Article Source: http://EzineArticles.com/?expert=Javier_V_Boix
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