Driving safely is not only important for your protection and well-being, but it can actually help you save money. Auto insurance companies prefer customers with good driving records because it keeps premiums low and saves money. Therefore, insurance companies will extend incentives and low premiums to safe drivers. To keep your insurance premiums low, it is important to be aware of and avoid the leading causes of increases to car insurance rates.
Leading Causes of Increases to Car Insurance Rates
The first and most obvious cause of increases to car insurance rates is being involved in an accident for which you are at fault. The severity of the accident determines just how much of an impact it may have. To reduce your chances of causing an accident, make sure that you are not distracted while driving. The difference between getting into and avoiding an accident can be mere seconds. Secondly, drive cautiously, particular during inclement weather during Massachusetts winters.
2. Moving Violations
Moving violations describe a wide range of activities. Some are minor, such an making a prohibited U-turn or minor speeding. More severe moving violations include running a red light, excessive speeding, or driving under the influence. Again, some of these will result in higher rate increases than others.
Avoiding Increases to Car Insurance Premiums
If you are in an accident or receive a moving violation, there are two costs associated with them. The first is the up-front cost (i.e. a speeding ticket) and the second are increases in car insurance rates. Regarding insurance rates, those generally change when you renew your policy (i.e. annually), so you may have some time to prepare. Contact your independent insurance agent to discuss alternative insurance companies that may be more forgiving of your mistake. Massachusetts is a competitive state and insurance companies will vary in the rates that they quote. Some companies may even allow you to reduce your premiums by attending a safe driving course. Being proactive may help you save some money and minimize the increases to your car insurance rates.