All insurance companies change their insurance rates according to the risk factor. While a Driving Under Intoxication (DUI) charge can have disastrous affect on your insurance, traffic tickets can sometimes be forgiven. These are always determined by your insurance company and also your state rules.
A DUI charge is considered as a major offense and this could increase your rates by just 25% depending on your cover, if you are lucky. You will also be placed under high risk drivers. Some have even seen their rates double after a DUI charge. Those resulting in jail term could lead to cancellation of your insurance policy too, depending on state laws. The increased rate can stay for a few years.
Its not always the big convictions, small traffic tickets can also add an extra $25-$100 per month on your rates. The time period also matters. Three tickets in two years, apart from increasing your rates can also make you ineligible for policy discounts.
Just one nasty accident could be all its required to see a big increase in your rates. The demerit points will stay on your profile for a few years and these points determine your insurance rates for the coming years. The number of tickets and their severity is also considered.
A speeding tickets normally costs about 25% of your insurance and could stay on your records for about three years. Insurance costs for three traffic tickets in five years could easily be anywhere up to $3000. Again all these depend on your insurance company, type of coverage and of course your state traffic rules. Just 1 or 2 tickets can easily change your rate.
If you are a minor or young driver, you are already classified as high risk driver. So a small mistake could have huge impacts on your rates. Repeat offenders and those charged for reckless driving can be sure of seeing an increase in their rates. In extreme cases your driving privileges may be limited.
On the other hand a clean driving record can save you if you are involved in a no-fault accident. If you happen to be involved in six accidents in a given time period (check your policy), you can definitely expect a rate rise and this could remain with you for 2-5 years. Safety always pays, both personally and financially.
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