How Your Driving Record Affects Your Auto Insurance Rates
Auto insurance is a necessary cost if you own a vehicle in Michigan, but it can be expensive. In Michigan, the average cost is $879 per year for minimum coverage and $3,161 for full coverage.
Insurers often offer discounts to help lower the costs. Having a good driving record can also keep costs low. DUIs, accidents, and speeding tickets can all raise your premiums. Here’s how.
The Danger of DUIs
If you want to avoid insurance hikes, it is best to drive sober. Drinking and driving can greatly increase your premium. A DUI can have a severe impact on your auto insurance rates. In fact, it is not uncommon for an insurer to double or triple your previous rate. They may even cancel your policy altogether and refuse to renew it. In Michigan, a DUI offense can remain on your driving record for life, but most insurance carriers charge for it for 3-5 years, so it can be hard to get your insurance rates back to normal.
Of all 50 states, DUIs are most costly in Michigan, where the average cost of car insurance rises by more than $5,000 a year. They can cause your insurance to increase from $5,766 to $11,163 a year.
Accidents and Higher Premiums
An accident can increase your auto insurance rates, especially if you’re found at fault. Insurers view at-fault drivers as higher risk. The rate increase depends on the severity of the accident, claim costs, and your driving history. Minor accidents may cause a small hike, while major ones can lead to substantial premium jumps. Some insurers offer accident forgiveness for first-time accidents. At-fault accidents will stay on your record for as long as five years.
How Speeding Tickets Can Affect Your Insurance
A speeding ticket can also increase your auto insurance rates, but not as much as a DUI. The impact on your rate depends on factors like your speed, location, and driving history. For example, going 5 to 10 mph over the limit may result in a small rate increase. However, excessive speeding, such as more than 20 mph over the speed limit, can raise premiums significantly. Taking traffic school does not help “hide” the violation from insurance companies, it only removes points from your license with the State of Michigan. The violation still appears on your driving record (MVR). Violations fall off your record after three years.
Keep Your Driving Record Clean
Michigan also rewards drivers the most for having a clean record. On average, the annual cost of car insurance in Michigan for drivers with a clean record is $4,664. This is much cheaper than the overall state average of $5,766.
Most insurance companies reduce premiums by $50 to $500 annually for clean driving records, so what Michigan does is huge.
Contact Us Today
Want to save money on your auto insurance? Be a safe driver. Avoid speeding tickets, DUIs, and other violations.
All passenger vehicles, vans, and light trucks must have auto insurance policies in Michigan under the law. Hartman Insurance Agency, Inc., has years of experience and can guide you on the best coverage options in Saline, Michigan. No matter what type of coverage you desire, we can find a policy for you. Schedule a consultation today by calling (734) 999-4190 or fill out the online form.