What Is the Insurance Price Tag on a Bad Driving Record?

ByAlexey SaltykovCo-Author: Jessica Mineau

YOUR DRIVING RECORD

When you get an auto insurance quote, many criteria are taken into consideration. Your age, the value of the vehicle, and your driving experience are just a few factors that affect your risk on the road. But it's also your driving record that strongly impacts auto insurance premiums. So, how does the driving safety compares across provinces? Most importantly, how exactly does a bad driving record impact driver's premiums?

DIGGING FOR INSIGHT

An independent Canadian research was completed to answer these questions. Evaluating over a thousand insurance data points across Canada, all drivers were divided into three categories according to their driving record:

No violations within the last 6 years (excluding parking tickets)Maximum 2 violations in the last 3 yearsMore than 2 violations in the last 3 years, or license suspension in the last 6 years

Further insurance premiums of these driver categories were analyzed.

EXAMPLE ONTARIO: HOW SAFE ARE DRIVERS HERE?

Drivers in Ontario are comparatively quite safe. 84% of Ontario drivers claim to have no serious violations within the last 6 years (parking ticket violations excluded). That is just 3% lower than British Columbia, which leads with 87%. Two other large provinces, Alberta and Quebec, have a slightly lower amount of drivers with clean records.

15% of drivers in Ontario state to have a maximum of 2 violations in the last 3 years, and just 1% of Ontarians had more than 2 violations in the last 3 years or faced a driving license suspension in the last 6 years.

Share of drivers with no violations within last 6 years per province:

British Columbia: 87%Ontario: 84%Alberta: 78%Quebec: 75%

WHAT IS THE PRICE TAG ON A BAD DRIVING RECORD?

How does a negative driving record impact our auto insurance rates? To find out, the research study compared the auto insurance spending of Ontario drivers across various age segments. It came out that Ontario drivers who have a maximum of 2 violations in the last 3 years pay approximately 20-25% more than drivers with a clean driving record.

To illustrate the potential increase in rates, let's assume a driver is spending $150 monthly on auto insurance premiums. If the driver falls into the 2 violation category, add 25% and they will pay up to an extra $37 each month, adding up to ~$450 annually. Should the driving record worsen with more violations, there is a great chance that the auto insurance cost will further increase. Not only does safe driving keep you and others out of danger-it also pays off on your insurance bill.

Alex Saltykov is a Co-Founder and CEO of InsurEye Inc http://www.insureye.com. Alex spent years advising insurance clients both in North America and Europe while he was working for one of the leading management consulting companies. His areas of expertise are insurance, innovation, IT and operations. InsurEye Inc. is a Canadian company that offers people transparency and insights around insurance using modern technology. Our new tool InsurEye Peer Comparison will show you what your peers across Canada pay for their insurance. This way you understand if you overpay and what insurance providers you should choose to save on insurance!

https://insureye.com/insurance_toolkit/insureye-peer-comparison

Jessica is the Head of Content and Communications at InsurEye. She is a bilingual communications professional and experienced multimedia journalist.

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Insurance: Car-Auto
Alexey Saltykov

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesAuto InsuranceFactors Affecting The Cost Of Vehicle InsuranceFinding Motorcycle Insurance For The Budget ConsciousRecent ArticlesExploring The Reasons You Need Enough Insurance CoverageHow Staying With One Insurance Company Can Save MoneyThe Cheapest Insurance Coverage For Your Business VehiclesHow To Find The Least Expensive Vehicle CoverageAuto Insurance Policies - Different Types of Automobile Indemnity CoversAuto Insurance Policies For Amateur DriversAuto Insurance Policies - Some Basic Points To Remember While You PurchaseInsurance Shopping StudyThings To Consider Before Buying Car InsuranceCar Insurance MythsSubmitted On February 19, 2012. Viewed 1 time. Word count: 431.

MLA Style Citation:
Saltykov, Alexey, and Jessica Mineau.".".19 Feb. 2012EzineArticles.com.22 Feb. 2012 .APA Style Citation:
Saltykov, A., & Mineau, J. (2012, February 19). . Retrieved February 22, 2012, from http://ezinearticles.com/?What-­Is-­the-­Insurance-­Price-­Tag-­on-­a-­Bad-­Driving-­Record?&id=6891266Chicago Style Citation:
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Get Cheap car insurance with price comparisons

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Comparisons that may mean cheap Auto insurance

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As mentioned previously, risk can play an important role in a person spends on car insurance. This also means that good drivers with records of drive clean can be found less expensive policies. Sometimes insurers even offer special discounts to avoid accidents during more than three years. Other discounts may also be used in combination to have a considerable impact on the costs of general coverage of someone. It is important to know, however, that many insurers are unique and can offer different types of reductions in the rate for a variety of reasons. A company can provide good student discount young drivers with exceptional qualities, while another can offer reductions in the rate for having several vehicles in the same policy. After comparing quotes can be a good idea to contact some insurers to compare discounts also to see which company can offer greater savings.

Source: http://www.onlineautoinsurance.com/cheap/

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