Do you know how much impact your driving habits have on your car insurance premium? You might think that only the price of the car and the name of the company determine the insurance premium, but in reality your driving habits are also very important.
Today we will understand this topic in very simple and conversational language. So let’s start and see how your driving habits increase or decrease the insurance premiums.
Driving Habits and Insurance Rates Relationship
Many people do not know that their small driving habits have a direct impact on their insurance premium. If you are a good and responsible driver then your insurance premium can be less. But if you are a reckless and careless driver then you may have to pay more money.
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Now I will tell you about those 3 big driving habits which reduce your insurance premium.
1. Speeding and Reckless Driving
The first and most common habit is speeding and reckless driving. If you always break the speed limit or overtake without thinking, then the insurance company considers you a high-risk driver.
High-risk driving means that you have a higher chance of having an accident. This increases your insurance premium too.
How to avoid this?
- Always pay attention to the speed limit.
- Follow the road rules.
- Stay away from overtaking and rash driving.
2. Distracted Driving
Nowadays the biggest reason is distracted driving. Talking on the phone, sending text messages, or even eating while driving – all these things divert your attention from the road.
Insurance companies put such drivers in the high-risk category because they have a very high chance of having an accident.
How to avoid this?
- Don’t use the phone while driving.
- Keep your full attention on the road only.
- If you have to do something important, park the car on the side and then do it.
3. Frequency of Accidents
If accidents occur many times in your driving record, whether it is your fault or not, insurance companies consider you a high-risk driver.
The more accidents you have in your name, the higher are your premiums.
How to avoid this?
- Join courses to learn defensive driving.
- Always be alert and aware.
- Follow traffic rules.
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How to Reduce Your Insurance Premiums?
Now that you have understood how much impact your driving habits have on your premiums, let’s know some tips by which you can reduce your insurance premiums.
1. Maintain a Clean Driving Record
A clean driving record can be the biggest saving grace for you. If you drive for a long time without any accident and without breaking any traffic rules, then you can get good deals from insurance companies.
2. Do a Defensive Driving Course
Defensive driving courses improve your driving skills and many insurance companies give discounts to people who complete these courses.
These courses teach you how to drive safely in difficult situations and avoid accidents.
3. Compare Insurance Quotes
Instead of always getting insurance from the same company, get quotes from different insurance providers and compare them. Every company has a different way of assessing risk, so you can get a cheaper premium somewhere.
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Conclusion
So friends, today we learned how much impact your driving habits have on your car insurance premiums. Speeding, reckless driving, distracted driving and frequent accidents can increase your insurance premiums.
But if you become a safe and responsible driver, maintain a clean record and join defensive driving courses, you can reduce your insurance premium significantly.
Remember, safe driving is not just about saving your life, but also about saving your money.
Drive Safe, Save Money!
