Car Insurance Rates Jump 53 Percent for Drivers with 3 Violations, Insurance.com Analysis Finds

By Insurance.com Posted : 05/23/2011

May 23, 2011 (Foster City, CA) – Car insurance rates soar for drivers who have one to three violations on their record, and the news is especially bad for motorists 65 and older.

A survey of more than 32,000 auto insurance policies sold through Insurance.com in 2010 found that costs jump 18 percent higher after one moving violation and skyrocket 53 percent after three violations when compared to rates for drivers with no violations. On average, drivers with no violations pay $1,119 annually for car insurance. By contrast, drivers with three violations pay $1,713.

Insurance.com analysis reveals the effect that moving violations have on the average auto insurance policy:

  • 0 Violations – Average annual premium cost of $1,119
  • 1 Violation  – Average annual premium cost of $1,318, an 18 percent increase
  • 2 Violations – Average annual premium cost of $1,497, a 34 percent increase
  • 3 Violations – Average annual premium cost of $1,713, a 53 percent increase

"The lesson is simple: drivers who speed, drink and drive or engage in other bad driving behaviors will pay through the nose if they want to keep their car insurance," says Chris Kissell, managing editor at Insurance.com. "The best way to save money on car insurance is to drive responsibly at all times."

The pain of higher rates is not spread around equally. A separate analysis of nearly 400,000 auto insurance quotes shows that policies offered to drivers age 65 and older who have two violations are 57 percent more costly than policies offered to people of the same age who have no infractions.  

By contrast, drivers with two violations in the next closest age group – 55 to 64 – only saw a 47 percent rise in their quoted rate.

Violations that may trigger a rate increase include:

  • Speeding tickets
  • Driving under the influence of drugs or alcohol
  • Careless or reckless driving
  • Running red lights
  • Failure to yield or stop at a sign
  • Fleeing from police
  • Driving the wrong way down a divided highway
  • Improper passing
  • Unsafe U-turn
  • Failure to use a child restraint

Drivers who have the misfortune of seeing their rates rise after one or more moving violations still have options for cutting premium costs. In many states, taking a driver safety course can wipe infractions from the record and help lower rates. Taking time to compare car insurance quotes at least once a year and raising the deductible on an auto policy are other ways to lower car insurance costs.

Methodology

The average annual premium on sold policies was calculated by examining 32,746 single-driver, one-car insurance policies sold through Insurance.com in 2010. The average quoted rate was calculated by examining 397,000 insurance quotes generated through Insurance.com in 2010.

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Insurance.com provides articles that help consumers understand insurance. The site makes it easy for consumers to research insurance questions and to make a fast, free car insurance comparison among multiple companies. Experts from Insurance.com are available for interviews about car insurance rates and other auto insurance topics.

For more information on finding cheap car insurance and other articles on understanding different coverage options, visit Insurance.com.

Press contact:

Jessica Cultra

479-739-2690

jcultra(at)insurance(dot)com

 

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