General Rule For Insurance Increase

Author: mdevo

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Joined: Thu May 27, 2010 8:14 pm
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General Rule For Insurance Increase

Unread post by mdevo »


I did a search but found no info with regards to the number or type of infractions that will trigger your insurance to increase.

Is there a general rule of thumb for this?

I have heard a few difference of opinins on this such as 3 infractions regarless of the severity will cause an increase, and also if a ticket is below 15km over it will have no effect.

Can anyone shed some light?


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Simon Borys
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Unread post by Simon Borys »

I think this really depends on your particular insurance company and your particular policy. My personal opinion is that everything causes an insurance increase, even getting no tickets. Last year my policy went up. When I called them and asked why they said, "General rate increase." Whatever...

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Radar Identified
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Unread post by Radar Identified »

mdevo wrote:Is there a general rule of thumb for this?

Not really, as Simon said. Depends on the insurer. For example, my provider does not give an increase for a single "minor" infraction, such as 15 km/h over the limit. A second minor infraction within a 3-year period results in a surcharge. Many others, however, will increase your rate for ANY infraction.

While insurance companies look at all sorts of information to minimize their financial risk (i.e. the payouts they'll have to make versus revenue), they interpret risk data a bit differently. When I moved to the US for two years, I did some on-line research, and saw one insurance company would've charged me $2000 more per year in premiums for a single speeding ticket. Curious as to what it would be for a more severe infraction, I changed the criteria while filling out the on-line quote, and I was stunned to discover my rates would've been lower if I had two drunk driving convictions and smoked a pedestrian. :shock: (Of course I don't have any drunk driving convictions and haven't hit a pedestrian, but that experiment with the insurance quote floored me.) Conversely, the provider I ended up choosing charged $25 more per year for a single speeding ticket of 10 mph over or less. Yet, both insurance providers, same state, same coverage area, same driver. Make sense? Didn't think so...

* The above is NOT legal advice. By acting on anything I have said, you assume responsibility for any outcome and consequences. * OR
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