Question:
Within the last year, I received two traffic tickets and was
at-fault for an auto accident. What do you think will
happen with my license (I'm in California)? And what about my
car insurance? Do you think these things will increase my
rates?
Answer:
In general, multiple tickets and accidents will cause your auto
insurance rates to spike. It doesn't help that yours were in
such a short period of time. It's even possible that your current
car insurance company will now consider you to be such a high-risk
driver it will force you to look elsewhere for coverage by not
renewing your policy.
Car insurance companies' rating systems vary -- which is how
there are
competitive prices available
to all types of drivers -- but your driving record is a major
rating factors to all insurers.
Some auto insurance providers won't raise your rates after a
single minor traffic ticket, but simply take away any safe or
good driver discounts
you had. Other car insurance companies up your premiums by 10 to 20
percent (or more) after a first moving violation. (See "
Tickets that don't raise your insurance rates
")
Normally, a second ticket is frowned upon much more by auto
insurers. You're starting to show a pattern of risky driving
behavior and thus rates may go up as much as 40 percent for that
second ticket.
Your car insurance costs could go up even more if you were
convicted of a major violation, such as careless driving or a DUI,
due to the riskier nature of the offense. It's pretty simple:
The more of a risk you pose as a driver, the more you are going to
pay in auto insurance premiums. (See "
What a big ticket does to your car insurance
")
Now let's add in your at-fault accident. One car accident on
your record can affect rates by 10 percent to 40 percent. Add this
to the rate hike for tickets and your rates could be increased
considerably - and keep in mind that the surcharges you receive
will continue for the next three to five years.
Since surcharge schedules vary from one insurer to the next, you
need to comparison shop to find the insurer that is priced the best
for your particular rating factors.
If your auto insurance company will keep you, then maybe it will
have the cheapest car insurance premiums, but it's very possible
that another insurer will instead. Car insurance quotes for
even high-risk drivers will differ by hundreds, if not thousands of
dollars.
For example, we compared quotes for a 35-year-old male in
Oakland. With a clean driving record, the cheapest quote for
liability coverage only was $604 a year. With two minor speeding
tickets and an accident, the quotes ranged from $1,086 to $1,588 a
year.
As for your driver's license, it depends upon your state's laws
if your privileges will be suspended due to the multiple moving
violations and accident on your record. In California,
drivers receive one point for at-fault collisions and minor traffic
convictions. For major traffic violations, such as reckless
driving, hit-and-run or DUI, you receive two points.
If you receive four points in 12 months or six points in 24
months, in California, then you're considered a negligent operator
by the state and lose your license. The California Department of
Motor Vehicles (DMV) says this includes at least a six-month
suspension and a full year of probation. If you are worried
about losing your license, contact the DMV to find out your point
total.
If you get another ticket, see if you are eligible to take a
defense driving course to keep the ticket and points off your
driving record, which may keep the offense unknown to your
insurance company.