The Impact of Traffic Violations on Auto Insurance Premiums in California

Traffic violations can impact auto insurance premiums, affecting drivers’ rates and overall insurance costs. Understanding how traffic violations can influence insurance premiums is essential.

California Traffic Violations  

California has traffic laws and regulations designed to promote safe driving and help reduce accidents on the road. Common traffic violations include speeding, running red lights or stop signs, reckless driving, driving under the influence (DUI) and distracted driving. When drivers are cited for these violations, they may face fines, license suspensions, and points on their driving record.

Traffic violations impact insurance premiums, as they indicate an increased risk of accidents and claims. Insurance companies consider drivers with traffic violations to be higher-risk customers, resulting in higher insurance premiums to offset the increased risk.

Points System in California

In California, traffic violations result in points being added to drivers’ records by the Department of Motor Vehicles (DMV). The number of points depends on the severity of the infraction. For example, minor violations may result in one point, while more serious offenses, such as DUI, can result in multiple points and potential license suspension. Accumulating points on your driving record can lead to higher insurance premiums when you renew the auto insurance policy.

The impact of traffic violations on auto insurance premiums varies depending on the severity and frequency of the violations and the driver’s overall driving record. A minor violation, like a speeding ticket, may result in modest increases in insurance premiums; more severe offenses, such as DUI or reckless driving, can lead to substantial premium hikes or non-renewal of coverage by some insurers.

Mitigating the Financial Consequences of Traffic Violations

While traffic violations can lead to higher auto insurance premiums, there are steps drivers can take to mitigate the financial consequences, including the following:

• Drive safely—Obeying traffic laws and practicing safe driving habits can help prevent accidents and violations, ultimately leading to lower insurance premiums.
• Get multiple insurance quotes—Each insurer uses its own criteria to determine rates, so you may find more affordable options elsewhere. Your agent can help you compare quotes.
• Consider usage-based insurance (UBI)—Some insurers offer usage-based insurance programs that use telematics devices to track driving behavior. Through these programs, Drivers with safe driving habits may qualify for lower insurance premiums.

Contact Us

By understanding the relationship between traffic violations and insurance premiums and taking proactive steps to improve driving habits, drivers can help mitigate financial consequences and potentially lower insurance costs.

Contact ISU-Atwood Agency in Placerville and Georgetown, California, to learn more about how traffic violations may impact your auto insurance rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.