According to a recent article in The Telegraph, the average insurance cost has fallen approximately £80 in 2013. Although many have seen lower insurance rates, there are several things you can do to save more. Most people are not aware of the things that increase their rates, or things they can do to lower them.
All insurance companies pull your driving history to help them calculate the risk involved with insuring you and your vehicle. The risk is a directly reflected in your premium. So obviously driving safer than average will save you, there are several things that can be done to make you a safe driver.
Things that Increase Rates
Tickets are the largest thing that can drastically affect your insurance rates. Forbes breaks down the type of tickets and how they can affect your rates:
Speeding tickets that are 30 mph over the limit can increase rates by 15%, 15-29 mph can be add 12%, and even those 1-14 over the limit can increase premiums by 11%. Driving speed limits is a must. If you receive speeding tickets, then they will see you as risky. Since speeders are involved in more accidents than the average driver.
Reckless or Careless Driving tickets can cause rates to jump from 16-22%. This can be a ticket that is added on to an existing ticket, for something like speeding, or by itself. They generally are given for those driving aggressively or those that are not paying attention, by doing things that take your eye contact off the road.
Improper Turns or Passing tickets can cause a 14% increase. Following the rules of the road can easily stop you from receiving either of these.
Failure to Yield or Stop, which can lead to accident or involve a blowing through a stop or yield sign, can increase rates by 9-15%.
Non-moving violations can increase rate from 3-18%, and vary from driving without a seatbelt (3%), lack of insurance (6%), and driving without a license (18%).
DUI infractions have a huge influence on rates. First time offenders can see an increase upwards of 19%.
Credit scores can also affect your premium. Kelly Blue Book states the reason, “In the eyes of auto insurance carriers, drivers with established and stable credit records have fewer accidents.”
Many insurance companies are offering new ways to calculate how safe a driver really is, such as apps and vehicle attachments. Aviva offers a 20% discount to those that purchase online. For UK residents there is now an app available. The app uses the GPS inside the phone to calculate a safe driving score, from 1-10. Utilizing the GPS allows the app to monitor braking, turning, and acceleration to create that personal safety score. It requires the driver to drive at least 200 miles with the app on. The app even promotes driving stats and awards badges that can be published on Facebook, which is great for the younger drivers.
The less you drive also lowers your risk. Keep track of your driving habits. If you are now driving less than you were when you signed up with your current provider, then update your policy.
Avoiding tickets might seem like it should be common sense, but realizing the cost it has on your insurance should motivate everyone to avoid them even more so. Letting the insurance company monitor your driving can be a little unsettling, but it a great way to lower your rates. As long as you’re not involved in any illegal activity, you have nothing to worry about.