Some Drivers Face Steep Annual Premiums for Minor Violations

New data suggests common driver infractions may mean hefty penalties for some drivers. Maybe not as bad as a DUI, but some drivers with minor infractions are seeing higher fees.

According to an article on Time.com, the data from InsuranceQuotes.com shows that DUI and reckless driving tickets will cause drivers’ annual premiums to jump by an average of 94 percent and 85 percent, respectively. While those price hikes might not seem unreasonable given the severity of offenses, the research also found that common driver infractions can also correspond to hefty penalties.

An average of 21 percent increase in auto insurance premiums was standard for a speeding violation of just 15 miles per hour or less over the limit, according to the data.

“Receiving a ticket for following too closely or failing to signal each come with a 19 percent increase, the article reads. “Improperly driving in a carpool lane caused drivers’ premiums to rise by 18 percent.

The amount of money auto insurance premiums will hike due to an infraction also depends on where you reside. It seems Hawaii has steep fines for a reckless driving ticket – where drivers saw about a 291 percent rate hike. But in Louisiana, drivers only saw about a 29.3 percent increase for the same infraction, according to the article.

The insurance commissioner's office in Georgia recently issued a consumer alert that auto insurance rates are going up for some policyholders – some as much as 58 percent, according to a Fox 5 News story.

Allstate reportedly wrote in an email to the Fox 5 I-Team that they "adjust rates very carefully, they set rates to be adequate for the coverage they provide, and the factors that went into announcing the rate hike are miles driven, traffic fatalities and repair costs.”

The Fox 5 article suggests that a good economy, low gas prices and more accidents are partly to blame. Another factor is texting and driving.

This is the second rate hike in six months by Allstate, according to Fox. In October some Allstate customers saw a rate hike of 10 percent and some of those same customers may now be facing a 25 percent increase. 

"The reason for the variation is that insurers in some states use rating factors that aren’t related to a driver’s competence on the road,” Doug Heller, an independent consumer advocate with the Consumer Federation of America, told the Detroit Bureau. “For instance, many states allow insurers to use credit scores, occupation and marital status as rating factors. In states like California and Hawaii that only consider a driver’s record on the road when calculating costs, any blemishes will have a more significant impact on their premiums.”

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