Driver License Compact and Auto Insurance Premiums Arizona AZ

Reader’s Question:

Hi, I live in Arizona. Now, I got a ticket for speeding in Nebraska. Is that going to affect my driving record and my auto insurance premium here in Arizona?

Isaac

Glendale, AZ

Yes, Gilbert, your driving record in Glendale, AZ will be “updated” even if the driving violation was done in Nebraska. You see, in the 1960s, some states formed the DLC or Driver License Compact. It was not so big before but it gained momentum in the ’90s. The aim of this organization is to monitor its motorists wherever they may be. The organization aims to make sure that a driving infraction you commit in one state will be forwarded to your home state. Arizona, your home state, and Nebraska, where you got the ticket, are signatories of this compact, which means that your speeding ticket will be sent to Arizona.

Now, one tiny traffic violation won’t really affect your premium, I assume this is the reason behind your question. Usually, auto insurance companies do not consider your first speeding ticket to be a factor in raising your auto insurance premium. But if you have several speeding tickets in your home state plus that one in Nebraska, then you might have to expect a little increase in your auto insurance premium. Minor road violations are no longer considered minor if they’ve been committed several times. The auto insurance company will reassess your risk factor when they check you driving history and find it peppered with road violations.

Tags: auto insurance premium, Car Insurance Company, traffic violation

 

Ways to Lower Car Insurance Premiums Arizona AZ

Reader’s Question:

I am from Arizona, and have been accident-free since I had my own car two years ago. Are there ways that I can lower my car insurance premiums?

Jack

Phoenix, AZ

Car insurance companies compute their rates based on the pool of losses they experience. Insurers take into consideration the statewide or countrywide losses their policyholders caused. The losses caused by the few policyholders will be paid for by others within the pool of policyholders even if they have had clean driving records.

Other reasons for the increase in premiums are the costs incurred by the insurer from settlements after a wreck, like medical expenses for the injured persons, or cost of repair or replacement of vehicles involved in a wreck. Although this may seem unfair, car insurance providers make up for this by providing discounts to policyholders who have not been a liability to the company. Most car insurance providers in Arizona give discounts to accident free drivers. A policyholder may also be eligible for a package discount if both home and car insurance are purchased from the same company. Most insurers also give discounts to car owners who have airbags and automatic seatbelts in their cars. Also, being a non-smoker could qualify you for a discount in some auto insurance companies. It is best that you talk to your insurance agent about discounts since most insurers do not advertise their promos.

Tags: auto insurance policy, auto insurance premium, Car insurance discounts