Because a driver's crash and traffic violation record is predictive of potential accident involvement, insurance costs tend to be greater for motorists who have been involved in chargeable accidents or convicted of serious violations during the past three years. A chargeable accident is one in which the driver was at fault and which lead to a death, a personal injury, or damage to property in excess of a specified amount of money.
A serious violation is, for instance, hit- and-run driving, vehicular homicide or drunk driving. Sometimes, providers categorize car owners as higher risks (and raise rates) on the basis of a number of less serious moving traffic violations, such as speeding.Find discount auto insurance now.
Many insurance firms charge drivers with poor driving records a surcharge to help fund their higher than average anticipated losses, and a number of companies also offer discounts to motorists with safe records. In some states insurers are allowed to determine the amounts of surcharges or discounts individually; in others these amounts are dictated by state authorities.
Surcharges are typically put on individuals who are involved in chargeable accidents or convicted of serious violations in the past 36 months. The surcharge remains in place generally three years and is then discontinued if the driver has never had another accident or violation in that period.
While the exact pricing procedure varies by company and by state, usually points are assigned to each chargeable accident or violation;the amount of premium surcharge is tied to the amount of points accumulated by a driver and other members of his or her household. One more point may be charged if the principal driver has held a license for under three years (unless a surcharge has already been applied because of an accident).


Like surcharges for poor driving records, reduced prices for good driving change from one insurer to another. Some discounts are offered in recognition of special efforts on the motorist's part to improve the odds against auto-related insurance claims.
These discounts include: Driver training discounts, for young persons who have completed driver training courses; defensive driving course discounts, that are around and required by law in some states, for persons who have successfully completed a motor vehicle accident prevention course; anti-theft device discounts, for individuals of cars equipped with alarms or disabling devices that lessen the likelihood of theft; car pool discounts, for members of groups that form car pools to drive back and forth from work; and passive restraint discounts, for motorists of cars furnished with air bags, or automatic seat belts, which have been shown to save lives and reduce injuries. Discounts are given to individuals with characteristics that put them into low risk categories.Compare discount auto insurance online.
These discounts have to do with the rating factors discussed above. As an example, in many states women over age 30 who either live alone or are the only driver in their household are allowed premium discounts. As another example, many companies make older motorists entitled to discounts, in some instances as early as age 50.