Where you currently reside often has a significant effect on your auto insurance premium rates, primarily because of the various regulations that each state requires. In most states with high living expenses, auto insurance prices are three to four times higher on average compared to the cheapest ones.
After a Speeding Ticket
Having a clean record will ensure that your insurance costs are low, but having one speeding ticket will not hurt your prices too much. According to various studies, there is often an average increase in insurance rates of about 25% if you receive a ticket for overspeeding at 16 miles more than the limit.
If you received only one speeding ticket recently, you could expect your car insurance rates to be:
After an At-Fault Accident
Getting involved in an accident will cause auto insurance costs to increase twice as much as overspeeding. The average insurance rate for drivers at fault after collisions are:
Averagely, you can expect a 50% increase in auto insurance rates for causing an accident. It may vary from state to state, but rates often increase from 30 to 60 percent after getting involved in a collision. Exceptions are North Carolina, Massachusetts, and California -- rate increase is over 70 to 80 percent on average. You will pay an extra $1,300 every year for auto insurance premiums if you live in California.
For Good and Bad Credit
You can expect a significant impact on your car insurance expenses in several states if you have bad credit. On average, car owners with poor credit will have to pay an increase of 75% on auto insurance rates.
There is a “credit-based insurance score” that insurers often use, which is more likely the same as a credit score. It helps in setting rates in several states, and it uses similar factors as well, such as delinquencies and on-time payments, but with different weights.
Each auto insurance company has different rates based on various factors, including your demographics, vehicle, location, and driving history. You might wonder why your friend received incredibly low charges than the one you have, but once you’re aware of what makes your costs increase, you’ll be able to thoroughly navigate the prices.
At Howe Insurance Brokerage, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (435) 674-8771 or CLICKING HERE to request a free quote.
I never took into account the fact that you can get a 50% increase in your auto insurance rates if you are the cause of the accident. I guess that is applicable as well with commercial auto insurance, especially when the car you have is huge. The owners of the vehicles such as trucks should definitely get their drivers trained regularly and ensure that the policy they will get has good coverage.
6/6/2022 10:38:45 pm
Thanks for helping me understand that auto insurance costs can increase if we get into an accident. In that case, I have to make sure that I will be a safe driver when I have my own vehicle next month. I need to stick to my budget as well so that I will not miss any monthly payments on other things for my peace of mind.
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