When it comes to car insurance premiums, the way you drive matters more than you might think. Insurers set rates based on risk, and risky driving habits lead to costlier policies. Whether it’s speeding, texting behind the wheel, or racking up multiple claims, your driving behavior could be one of the primary reasons for high insurance costs. Here's how specific bad driving habits impact your car insurance rates and what you can do to steer clear of premium hikes.

Speeding

Speeding is one of the most common driving infractions, but it’s also a significant factor in determining your insurance premiums. Insurers view speeding as an indication of risky behavior, as it increases the likelihood of accidents and severe injuries.

  • Why Insurers Care About Speeding: Data consistently shows that speeding makes accidents more likely and more damaging. The faster you drive, the less time you have to react, and the greater the force of impact in a collision. Tickets for exceeding the speed limit flag you as a higher-risk driver, prompting insurers to raise rates.
  • Impact on Premiums: A single speeding ticket can increase your insurance premium by 20% or more, depending on the severity of the offense and your driving history. For example, driving 10 mph over the speed limit might cause a slight increase, whereas 30 mph over the limit or reckless speeding could result in a significant surcharge.
  • Example: If your annual car insurance rate is $1,200, a speeding ticket could add $240 or more to your premium, depending on your insurer.

Tip to Avoid Rate Hikes:

Stick to posted speed limits and use cruise control on highways to maintain a steady, legal speed.

Distracted Driving

Distracted driving, often caused by texting, eating, or adjusting in-car gadgets, is another red flag for insurers. It’s become one of the leading causes of accidents nationwide, prompting stricter insurance risk assessments.

  • Why It’s Risky: When you’re distracted, your reaction time slows, and your ability to identify hazards diminishes. Even a momentary lapse of focus can result in a fender bender or worse.
  • How It Affects Premiums: A distracted driving violation, such as getting ticketed for texting while driving, can raise your rate by as much as 30%. Insurers may see you as someone likely to file claims, increasing your risk profile.
  • Example: A driver caught texting while driving could see their annual insurance rate rise from $1,300 to $1,690, reflecting the financial impact of dangerous habits.

Tip to Avoid Rate Hikes:

Invest in hands-free devices, keep your phone on silent, and focus on the road. Avoid multitasking while driving to stay safe and keep premiums low.

Driving Under the Influence (DUI)

A DUI is one of the most severe offenses in the eyes of insurance companies. Driving under the influence of alcohol or drugs not only endangers lives but also signals chronic risky behavior.

  • Insurers Take DUIs Seriously: A single DUI conviction can classify you as a high-risk driver, requiring insurers to charge significantly higher premiums or even refuse coverage altogether.
  • Impact on Premiums: Premiums can increase by 75% or more after a DUI. Many states also mandate filing an SR-22 form to show proof of insurance, which adds administrative fees.
  • Example: After a DUI, a driver paying $1,500 annually for insurance could see their rates rise to $2,600 or higher, depending on the severity of the offense and how long it stays on their record (usually three to five years).

Tip to Avoid Rate Hikes:

If you plan to drink, arrange for a designated driver or use a ridesharing service. Preventing a DUI not only saves lives but also helps you avoid financial penalties.

Frequent Insurance Claims

Filing frequent car insurance claims, whether for accidents or minor damages, can quickly label you as an expensive customer. Even if the incidents weren’t your fault, insurers may raise rates if claims suggest a pattern of risky driving or poor decision-making.

  • Why Claims Matter: Insurers assess risk by frequency and severity of claims. Each claim represents a cost to the company, and frequent claimants are seen as more likely to incur additional costs.
  • Impact on Premiums: Filing multiple claims in a short period can increase your premiums. Minor incidents, like fender benders, may raise rates by 10%–20%, while at-fault accidents could lead to increases of 30% or more.
  • Example: A driver with a $1,400 annual premium who files two claims within a year might see their rates increase to $1,820, especially if one or both claims were at-fault.

Tip to Avoid Rate Hikes:

Opt to pay out-of-pocket for minor repairs that cost less than your deductible. This minimizes claim frequency and keeps your insurer from viewing you as high-risk.

Aggressive Driving and Road Rage

Aggressive driving behavior, such as tailgating, unsafe lane changes, and excessive speeding, can result in citations and higher premiums.

  • Why Insurers Penalize Aggression: Aggressive drivers are more likely to be involved in collisions, making them a financial risk to insure. Even if no accidents occur, violations for reckless driving are a major red flag.
  • Impact on Premiums: Reckless driving convictions can spike premiums by as much as 50% or more, as insurers view these drivers as liabilities.
  • Example: A policyholder paying $1,800 annually who is cited for reckless driving may see their premium jump to $2,700.

Tip to Avoid Rate Hikes:

Maintain a calm demeanor while driving, no matter the stress or traffic conditions. Plan extra time for your trips to avoid feeling rushed.

Neglecting Maintenance Leading to Accidents

Failing to maintain your vehicle, such as ignoring brake issues or driving on bald tires, can lead to accidents that insurers trace back to negligence.

  • Why Maintenance Matters to Insurers: Neglected maintenance increases the likelihood of mechanical failure, putting your safety and others at risk. Insurers may attribute accidents to your lack of proactive vehicle care.
  • Impact on Premiums: Claims stemming from accidents tied to poor vehicle upkeep could lead to higher premiums or policy cancellations if neglect becomes a recurring issue.

Tip to Avoid Rate Hikes:

Stick to a regular vehicle maintenance schedule, addressing warning lights and replacing worn parts promptly.

How Insurers Assess Risk

Insurers use multiple tools to evaluate your risk level, including:

  1. Driving History: Frequent tickets, accidents, or claims increase your premium.
  2. Telematics Programs: Usage-based insurance monitors driving habits and can both reward safe drivers and penalize risky ones.
  3. State-Specific Factors: Your location and local traffic conditions also play a role in assessing risk.

By understanding what driving behaviors insurers penalize, you can take steps to improve your habits and maintain lower premiums. Small adjustments in how you approach driving can make a substantial difference in your overall costs and help ensure you remain a low-risk, desirable customer for insurers.