Auto insurance rates are surging, mirroring the dramatic increase in car prices. Learn about the factors driving this trend, including vehicle repair costs, personal risk profiles, and the impact of moving violations on premiums.
Just as new- and used-car prices have skyrocketed in recent years, auto insurance rates are following in lockstep. According to the U.S. Bureau of Labor Statistics average premiums have increased by around 51% over the past three years. Bankrate.com says that makes the national average to cover a typical vehicle an annual $2,543, which is prohibitive for many families. Experts say this can be attributed to record high prices for new and used cars combined with steeper costs for repairs.
In general, the more a vehicle costs to replace or repair, the more a policyholder will be billed for coverage. But that’s only part of the actuarial equation. A policyholder’s premiums are affected by an array of personal factors, including one’s gender, age, address and the number of annual miles driven. Perhaps most importantly, motorists having clean driving records will always pay less than those having moving violations and/or at-fault accidents on their records. According to a study conducted by the insurance website TheZebra.com, getting a moving violation can boost premiums by as much as 82 percent, depending on the severity. Relatively minor infractions might not automatically hike one’s rates if it’s one’s first violation, and especially if the issuing body allows recipients to attend traffic school or driver-safety classes to keep tickets off their records. Based on TheZebra’s analysis of 61 million auto insurance rates across the U.S., the citation that will most boost an offender’s rates is a hit-and-run violation at the aforementioned 82%. Meanwhile the tickets that will least affect one’s insurance premiums are failure to wear a seatbelt with a mere 4.0% hike and driving without headlights on at night at 3.4%.We’re citing The Zebra’s list of the 15 costliest moving violations with regard to annual premiums below, noting the average hike in terms of both percentages and dollar amount increase
AUTO INSURANCE PREMIUMS DRIVING COSTS MOVING VIOLATIONS VEHICLE REPAIR
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