Take it easy. It’s all right. Just breathe. It’s not the end of the world.
It may help to keep repeating these words when you are pulled over by a police officer and given a traffic ticket. Or if you’re involved in a fender bender. Yes, your day may have taken a turn for the worse, but your life isn’t over. You will get through this.
Of course, one of the downsides of tickets or accidents is that you might get an unwelcome surprise in the mail when your auto insurance bill comes: the premium may be higher than it was before because of your earlier mishap.
Again, take it easy. It’s all right. Just breathe. It’s not the end of the world.
While this may make you tighten your budget in the short term, you’re not doomed to a life of skyrocketing car insurance rates. There are plenty of ways to lower the costs of your auto insurance – even if you have a less-than-perfect driving record.
Why Does My Insurer Have to Raise My Rate?
The reason that auto insurance premiums go up after accidents, thefts, or traffic violations is because those occurrences send a signal to the insurer that you are A) an unsafer-than-average driver, and/or B) more likely to file a car insurance claim. And like any other business, insurance companies try to limit expenses, such as paying out money to repair vehicles, pay medical bills, and address other related costs.
Insurers operate under the assumption that past behavior is indicative of future behavior – that is, drivers who have gotten ticketed or caused crashes in previous years are likely to continue that pattern going forward. Therefore, insurers try to offset some of those predicted costs by increasing the insurance rates of those drivers who have blemishes on their record.
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