How Do Accidents Affect Auto Insurance?

When a person goes to purchase auto insurance, there are many factors that have to be taken into consideration to develop an accurate quote. And while obtaining a policy that has a reasonable premium rate is of the utmost benefit, it is imperative to keep in mind that this rate can always change. Take for example a policyholder gets a speeding ticket. This type of traffic violation can cause insurance premiums to increase. Here’s a quick look at how traffic violations and accidents affect insurance premiums.

How do speeding tickets affect insurance rates? 

If you get a speeding ticket, this means you were traveling over the legal speed limit. Speed limits are created by specialists who use calculations to determine the safest speed for drivers to travel. When going over these speeds, this means you are more likely to be involved in an accident, which of course puts you at a higher risk for insurance companies. Because of this, if you get a speeding ticket, your premium rate is likely to go up. Fortunately, many states allow you to take part in traffic school class to keep your rates from going up, but you can only take part in this class every so often, meaning if you get multiple speeding tickets in a small amount of time, your insurance rate is likely going to go up.

How do accidents affect auto insurance?

Not all accidents cause your insurance to go up, but many of them will, especially if you are the at-fault party. This is why it is so important never to admit fault and to let your insurance company handle the accident paperwork for you. 

To learn more about auto insurance, please contact AWARD Insurance Group serving the Dalton, GA area.