How One Infraction Can Affect Your Auto Insurance

How One Infraction Can Affect Your Auto Insurance

Not wearing your seatbelt may be the last of the “minor” moving violations because just about anything else will spike your auto insurance premiums.

There is no such thing as a minor traffic ticket, except for not wearing your seatbelt—that being said: you should always wear your seatbelt. Just about any other moving violation ticket will see to it that your auto insurance premium may take up to a sharp 20 percent increase!

While this may seem unfair, it’s important to know how insurance companies determine premiums in the first place. Insurance companies use statistics to determine premiums. This means that they put your driving record and other factors into a formula, of which the results determine whether you are a high-risk driver or a low-risk driver, as well as what they will charge you for your monthly premium. Low-risk drivers are often associated with safe driving and clean driving records, so their premiums are relatively low. High-risk drivers, on the other hand, are associated with dangerous driving and less-than-great driving records. Thus, a higher premium is given because they are seen as a liability. Even a minor moving violation can taint your driving record and mark you as a high-risk client.

Auto insurance may not be very expensive, but it’s not exactly change you have lying around in between sofa cushions. Breathe a sigh of relief knowing that auto insurance costs have stayed virtually flat over the past few decades, compared to other costs that you likely make on a monthly basis. It’s only increased 10 percent, while food costs have increased 21 percent, housing expenditures by 29 percent, and health insurance by a staggering 52 percent!

Purchasing the right car insurance at the right price will save you money and a headache. For policies across the globe, Contact the independent insurance professionals at Lloyd S. Berkett Insurance Agency in Los Angeles for all of your insurance needs.

Lloyd Berkett Insurance

11150 W. Olympic Blvd.
Suite 610
Los Angeles, CA 90064

(310) 857-5757
(800) BERKETT | 237-5388
Fax: (310) 857-5750

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