Should you disclose your traffic violations?
The answer is a simple “yes”! When you make disclosures to get an car insurance quote, you are asked whether you have had any tickets or accidents during the last twelve months (longer in some cases).
Remember the only information the insurers have to work with is the information you give them. If you are dishonest or misleading, this gives the insurer the right to cancel the policy when it becomes aware of your failure to disclose.
Let us be very clear: a recent ticket or accident will cause an increase in the premium. But it is better to be insured than find yourself uninsured after another accident.
No matter how hard you try, it is easy to break traffic laws. Speeding is the most common, followed by missing a stop sign, particularly one not well lit at night. As well as the fines which can be quite large, your good driving record is damaged, so the insurance rates will go up. The younger you are, the bigger the premium increase. Insurance companies extract statistical data from all the claims.
Each offense whether parking tickets, moving violations including DUI, or at-fault accident is given a point value. If you are convicted, the relevant points are added to your driving history. The more points, the higher the potential premiums. If your record is not so good, shop around. Insurers estimate the risks differently. This is particularly important if you are young or you have a young driver on your policy.
The evidence shows that 16-year-old teenage drivers are driving too fast for the road conditions in nearly 40% of accidents. Teenagers most commonly speed at night, and they are most likely to be pulled up by police when other more mature drivers might be ignored.
If they cause an accident involving personal injuries, most third party insurance companies sue on the assumption that the inexperienced driver was at fault. Because the young are more likely to need legal assistance, insuring at the minimum is unwise.
You should always include your children as named drivers and make a full disclosure of their driving history. It is a false economy to try to avoid paying the higher premiums, particularly if you are going to allow them to drive a more powerful car.
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Because of the increased risks, you should consider buying an umbrella policy alongside an auto insurance and home insurance policy to provide general cover against all risks. As a rule of thumb, you can expect to pay around $350 per year for $1,000,000 cover. Now, whatever your teenage children may do, whether it is entering your car in an unofficial demolition derby or hosting a surprise party in your home, you can avoid losing all your assets in the flood of litigation that may follow their latest exploits.