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Are you looking to save money on your automotive coverage? While finding the best policy is important, your driving record is just as important – if not more important! According to a new study, the number of traffic offenses on your record can mean the difference between a monthly premium that is manageable and one that is sky high.

For example, drivers who purchased a plan last year with one ticket on their record had a monthly premium that was 18% higher on average than drivers with no violations. With two violations, drivers paid 34% extra, and with three they had to pay more than 50% extra! If you are 65 or older, violations have a magnified effect – just two violations in this age range and you will see a 57% increase.

The analysis examined 32,000 single-driver, one-car insurance policies purchased in 2010. The study found that a number of factors associated with receiving a ticket affected insurance rates.

Types of Violations

The following are infractions that will affect your monthly premium:

• Speeding
• Driving under the influence (DUI)
• Careless driving
• Running red lights or stop signs
• Failure to yield
• Illegal passing
• Improper U-turn
• Failure to use a child restraint

Time is of the Essence

The raw number of offenses on your record doesn’t necessarily make a huge impact on your driving record; it depends on the time period between the offenses. For instance, if you’ve been caught breaking traffic laws twice in the last six months, your car insurance rates will likely go up significantly. However, if you have two offenses that are five years apart, your rates should not go up substantially.

The amount of time between offenses is critical to establishing patterns in driving quality and responsibility-rare infractions tend to be seen as exceptions to otherwise good behavior, while frequent infractions are linked to poor driving habits.

Consider Points Before Buying

Some good news is that you can ask to see how insurers calculate their rates before you purchase a policy. Ask to see their point tables or schedules so you can know exactly what they charge for different driving records. That way, you can make the best decision.

Keeping Your Premium Low

Of course, avoiding tickets and driving safely are the best ways to avoid the pitfalls of infraction-related rate hikes. But you can also do a few other things: (more…)

When times were less civilized, people used to pay fortune-tellers to predict the future. Will a tall, dark stranger come into your life next week? Will you win more than you lose in life’s game? Although the modern actuaries may not be quite so good on the hair color of the people you will meet next week, they are very good at estimating a whole range of things about your life. As a driver, they can estimate the risk you will have an accident during the next year. As a home owner, they can predict the probability you will suffer a burglary. Depending on your health record, they can suggest the diseases and disorders you are most likely to catch. They are experts on life expectancy. So, when it comes to setting the premium rates for whatever policy you are proposing to buy, they have already placed you in a group.

At this point, we need to refer to the National Health and Nutrition Examination Survey which, among other things connected with the health of the nation, monitors body weight. The results of the most recent survey show that almost two-thirds of all Americans are overweight and about one-third are considered clinically obese. Should the present rate of increase be maintained, the entire population should be considered obese come 2050. Except, of course, there will always be some who insist on being thin. Why should this matter? Because obesity has a direct bearing on life expectancy. The heavier you are, the shorter your expected span of years. Worse, as the weight rises, so do the chances of long-term illnesses so, even if you do continue life, it may well involve long-term nursing care.

Not surprisingly, one of the standard questions to resolve while the insurers decide whether to issue a policy and, if so, at what premium rate, is your weight. Although simply carrying an extra few pounds is not a pre-existing medical condition, the moment you admit an above-average body mass index for your age, the medical exam will become more thorough. There will be particular interest in the level of cholesterol and other lipids in your bloodstream, and then tests over time to discover whether your blood pressure is rising, whether your arteries are hardening and whether the first signs of heart disease are present. The more serious any symptoms, the less likely it is the insurer will agree to insure you, or the insurer will only offer a policy with a higher than expected premium rate. (more…)