3 Huge Mistakes That Raise Your Auto Insurance Costs

Everyone should have an auto insurance policy on their vehicle. Unfortunately, a policy can become very expensive for drivers who make certain mistakes that cause their premiums to skyrocket. Here are three big errors that could result in insurance premiums climbing so high that they end up taking a huge chunk out of a motorist's bank account.

1. Getting a speeding ticket

Speeding tickets are a huge source of concern for auto insurers for two big reasons:

• If a driver is going too fast, they're more likely to get into a crash because they'll have less control of the vehicle and a longer stopping time.
• When a collision occurs at high speed, there will be more crash energy, so serious or even fatal injuries are more likely to happen. The car is also more likely to sustain serious damage.

Due to these issues, insurers charge more money for a driver who gets a ticket. The specific premium increase can vary by insurer and is based on factors like driving record, as well as just how fast the policyholder was going. Specifically, a driver who is traveling 30 mph or more over the speed limit would typically see a premium increase of around 30%, while a motorist who isn't going quite that fast could see premiums rise by 20% to 22%.

Speeding tickets can stay on a motorist's record for three to five years in most cases, but the older the ticket, the less impact it has on premium prices. Drivers may also avoid having a ticket go on their record -- and facing the resulting increase in insurance costs -- by completing traffic school if their state allows it in their situation.

2. Getting into an at-fault accident

Accidents are definitely bad news for premium prices. Insurers raise prices following a crash because they have to pay out a claim and because they believe someone who caused a collision once is more likely to cause another one.

The average rate increase after an at-fault collision varies by state, from as low as 4% in Rhode Island to as high as 92% in New Jersey. In most places, though, premiums go up by around 35% to 50%, or somewhere near that range, once a motorist has been involved in an at-fault accident. Accidents usually stay on a driving record for around three to five years and can impact premiums during the entire period.

Some insurers offer accident forgiveness as an optional add-on and those who buy it before a collision won't see premiums increase after their first at-fault accident. Investing in this add-on may be worth it to ensure one mistake doesn't lead to higher premiums for years to come.

3. Getting a DUI

A ticket for a DUI (driving under the influence) can result in insurance rates increasing by as much as 94% on average. This makes sense as drunk drivers are more likely to be involved in an accident and are more likely to cause a serious crash since their intoxication may affect their reaction time and ability to take steps to limit the damage.

Ultimately, these mistakes can be costly ones, both because of the risk of higher auto insurance premiums and because of the other consequences of driving drunk, getting into an accident, or speeding. Motorists should aim to drive as carefully as they can and try to avoid these behaviors. It will be better for them personally and financially over the long haul.