Knowledge Centre

How Bad Driving Can Lead To Higher Insurance Cost?

In today’s culture, a major chunk of drivers are involved in some kind of bad driving, whether it is due to carelessness or distraction. It may include a number of activities like eating or drinking while driving, texting or talking on the phone, day dreaming and most importantly drunk driving. These activities as we all know are the most common cause of car accidents and injuries. If you think accidents are the only way a bad driving can affect you, you should read ahead the following consequences!

  • You may be given a ticket which may lead to a huge financial penalty.

  • You may even lose your license depending on the cases registered against you.

  • You may have to bear a higher insurance rate.

  • A bad driving leading to an accident may get you in trouble if the other party dies or suffers from severe injuries.

  • You lose your no claim bonus when you claim an insurance for your car damaged due to a careless driving.

How bad driving can lead you to higher insurance costs?

When you choose to buy car insurance, most reputed insurance companies like HDFC ERGO take into consideration various factors to come up with the price of your premium, deductibles and price of your policy. Some of the major factors are the type of car you own and your driving habits. Talking about car insurance expenses, a reckless driving insurance cost can really come to be a hefty amount.

How do insurance companies determine the kind of driver you are?

To start off, the type of car you own is taken into account. Some cars just come out to be more expensive than others when it comes to getting them insured. This is not because some particular cars and their parts are expensive, but because of their quick acceleration and speed. The insurance companies seem to profile what kind of drivers would like fast cars. This is the reason many high end fast cars and sports cars require expensive insurance policies.

The most common and important clue is the number of claims you have made in the past years. Firstly, by making a claim for an accident, you lose out on your no claim bonus. Secondly, a number of claims may portray you as a high risk driver, eventually making you pay more as a high risk driving insurance cost is much higher than what you pay if you drive safe.

This makes it all the more important for you to be calm and responsible while on the road, not just in the way you drive but also while dealing with other drivers.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the purchase.

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