It is no surprise that insurance companies prefer to insure safe drivers. From the insurance company’s perspective, fewer accidents mean fewer claims and fewer claims lead to significant savings. As a result, insurance companies often reward safe drivers with lower premiums and enticements like vanishing deductibles.
On the other hand, drivers who have received moving violations or have been involved in an auto accident may see rate increases when their auto insurance policy renews. Since every accident is different, if a collision causes little property damage for instance, the insurance company may not penalize the driver with a rate increase. However, most moving violations will result in rate increases. Understanding why your auto insurance premium may have increased will help you improve your driving habits and get back on the road to savings. Below are several specific factors that may cause auto insurance premiums to increase: Photo Credit: Joe Damadman
• Severity of any automobile accidents you are involved in
• Cost of your claims or the cost of claims of other drivers involved in any accidents
• Type and number of moving violations on your a Motor Vehicle Report (MVR)
• Your level of fault in any auto accident recorded on your MVR
• Number of years you have maintained an accident-free driving record
Maintaining Your Motor Vehicle Record
Like your personal credit report, obtaining and monitoring your MVR plays a crucial role in keeping your auto premiums low. Mistakes found can be corrected, enrolling in a safe driving course may erase demerit points, and moving violations can be changed to non-moving violations in some cases. Click here to obtain your State of New Hampshire Motor Vehicle Record.
Each insurance company has its own system for deciding what factors it considers when determining your premiums, but you can take control by practicing safe driving and maintaining a clean motor vehicle record. Click here to learn more about safe driving courses in New Hampshire. For the most accurate information regarding the specific ways in which your MVR may affect your auto insurance premium, it’s best to talk to your independent insurance agent.
Moving Violations that May Trigger Auto Insurance Increases
• Driving under the influence of drugs or alcohol – DUI
• Speeding, reckless driving, or careless driving
• Fleeing or escaping from law enforcement officers
• Running a stop sign or red light
• Driving the wrong way
• Improper passing
• Lack of child restraint
• Unsafe/Illegal U-turn
• Conduct after an Accident
• Texting while driving
The above list is expansive but may not be complete. You should check for additional violations specific to your state or municipality that may increase your auto premiums. Click here for the New Hampshire Rules of the Road. To fully understand what violations negatively affect your auto insurance premiums, it’s best to contact your independent insurance agent or insurance provider directly.
When Will Your Premiums Increase?
How soon after an accident or moving violation will your auto premiums go up? Generally speaking, premiums increase at renewal time. However, if you have not informed your insurance agent or provider about the accident or violation, it may take longer for the rate increase to take effect, but it will eventually be discovered. If your insurance company notifies you of a premium increase at the time of renewal, talk to your independent agent about looking for better rate. Your independent agent represents many different insurance carriers and will quote your policy with all of these companies to ensure that you receive the lowest possible rate.
At Knapton, Reade & Woods, our agents will help you better understand the factors that can influence your auto insurance rate. As independent agents, we will represent more than 10 of the top regional and national insurance carriers, and will work with these companies to find the best rates and coverage options for each of our clients. For additional information or to get a free auto insurance quote, please call us today at 603-464-3422 or click here to submit our online quote request form.
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