Your auto insurance rate is going to be dependent on several factors. One of the major factors is your driving history. Drivers who have not been safe drivers in the past can expect their rates to be higher than those who have a clean driving history. Why is this the case?
Unsafe Drivers Are Bigger Risks
Your insurance company wants to limit the amount of money it has to pay out in damages. Drivers who have had accidents in the past are more likely to do so again. Your rates are going to be higher specifically because you are a higher risk of costing your insurance company money. Money paid out in damages can reduce profit margins. The drivers is therefore going to make up this lost money in the form of higher rates.
Higher Insurance Costs Get Passed To Other Consumers
It might not seem like a big deal to you if your insurance company has to pay out on a claim. However, it will impact other drivers who are insured by the same company. Higher overhead costs are going to be passed on to the consumer at some point. It seems like the fair thing to do is to charge the driver responsible for driving costs up to pay more for insurance.
Get Rewarded For Safe Driving
You should be aware that there are many rewards for being a safe driver. Drivers who do not file claims can get a discount for that. Safe drivers may also qualify for a reduced deductible should they ever get into an accident. Being a good driver can save you money down the road.
Do your part to become a better driver. Taking defensive driving courses can help you develop good habits that will keep you safe on the road. Understanding the rules of the road keeps you safer while saving you money on your car insurance.