Traffic fines can make your car insurance more expensive; understand how

The price of car insurance is influenced by several factors. Characteristics such as gender, age, address, routine and even marital status of the contractor can make the policy more expensive or cheaper. As well as the value of the asset, the type of car, whether it has a garage or not, which coverages and services will be contracted also influence the value. But what many drivers don’t know and don’t take into account on a daily basis is that traffic fines can also make your policy more expensive.

In addition to the immediate financial loss and the loss of points on the National Driver’s License (CNH), committing traffic violations can also generate more expenses and headaches when hiring or renewing insurance. This is because the accumulation of infringing conducts works as a risk index for insurers.

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How traffic violations can increase the value of auto insurance

Companies consider that drivers who have recent fines or car accidents in their driving history are more likely to file a claim, so the premiums charged are usually higher.

This is because the pricing of vehicle insurance is based on statistical probability analysis. Insurers evaluate the driver’s behavior to predict the risk of claims, such as collisions and accidents, a scenario in which they will have to take action and bear, in full or in part, the losses.

Drivers who disrespect the rules of the Brazilian Traffic Code (CTB) and accumulate fines indicate less responsible driving. For the insurer, this profile represents a high risk of generating future losses, which results in the direct increase in the value of car insurance.

The impact can appear at different points in the relationship with the insurer, such as:

• Renewal premium increase
• Loss or reduction of the bonus (depending on policy and history)
• Change of risk category or driver profile
• Requirement of a higher deductible in some modalities
• Proposal refusal in cases of profile considered high risk
• Greater rigor in the adjustment of the claim when there are indications of aggravation of risk

Many insurance companies work with pricing models that consider the driver’s history, previous claims, and vehicle characteristics. Traffic violations can be included in this analysis directly or indirectly, depending on how the insurer collects data and what is stated in the risk questionnaire.

Isolated fines will not impact the value of the insurance, but a pattern of behavior will

An isolated fine, especially if it is not serious, tends to have a very small impact. A repeated pattern of infractions, on the other hand, can signal high risk and directly affect the calculation of the service.

In practice, insurers tend to look at:

• Recurrence of fines in a short period
• More serious fines, with high speeding
• Claims history and circumstances of previous accidents
• Declared profile (vehicle use, mileage, purpose, route)
• Main driver and occasional drivers

Therefore, the driver often only notices the effect at the time of renewal, when the premium rises without apparent explanation. The increase may be associated not with an isolated event, but with the set of data that the insurer evaluated.

Main infractions that raise the price of insurance

Certain conducts behind the wheel have different weights in the CTB and cause varied impacts on the risk perception of companies. Learn about the four most common infractions that weigh on the budget:

1. Speeding

The practice of exceeding the allowed speed limits leads the statistics. The severity and penalties vary according to the percentage exceeded:

• Up to 20% over the limit: Medium infraction. It adds 4 points to the CNH and has a fine of R$ 130.16.
• Between 20% and 50% above the limit: Serious infraction. It adds 5 points to the CNH and has a fine of R$ 195.23.
• Above 50% of the limit: Very serious infraction. It adds 7 points to the CNH and generates a fine multiplied by three, totaling R$ 880.41, in addition to the immediate suspension of the right to drive.

In the logic of the insurance market, the speeding fine can indicate: riskier driving habit, greater exposure to events, possible aggressive driving profile, greater chance of collision and high indemnities.

2. Driving under the influence of alcohol

The combination of drinking and driving is treated with zero tolerance. Driving under the influence of alcohol or psychoactive substances generates severe punishments in the CTB, such as detention, high fines and the loss of the right to drive. In the mapping of insurance companies, this driver is classified as “dangerous”, causing a very significant increase in the insurance quote.

3. Running a red light

Ignoring traffic light signals demonstrates high-risk behavior. Statistically, the chance of a serious accident happening is much higher among drivers who have this habit. This recklessness signals to the insurer the lack of defensive driving, raising the cost of the policy.

4. Use of cell phone while driving

Handling or talking on a cell phone while driving has become one of the main causes of traffic accidents in the country. Although common, the practice is a very serious infraction, punishable by a fine of R$ 293.47 and 7 points on the CNH. The use of the device disperses attention and considerably increases the driver’s reaction time in the face of unforeseen events. This behavior is a determining factor for insurance companies to include the driver in a more expensive fare range.