Oct 14, 2008

Drive Safe and Save

Bad driving costs us all, and the toll is greater than you might realize. Certainly, drivers who get traffic tickets pay fines and even do jail time, while drivers who are involved in accidents frequently get hit in the pocketbook even if they are well-insured. Furthermore, bad driving can be expensive in ways we might not even imagine. For instance, a 2003 National Highway Traffic Safety Administration study determined that the average accident costs an employer $16,500, an expenditure that drives up the prices of goods and services we use each day.

While some costs of that ilk might seem far removed from us as consumers, others are very direct, and they are reflected in the price you pay for vehicle insurance. A recent study by the Insurance Web site points out the direct relationship between poor driving and higher insurance costs. The study, which compared the average price of a policy from 15 companies nationwide, showed that customers with no traffic violations paid an average annual premium of $1,420, while those with two violations paid $1,849. The ones with three violations paid $2,006, and those with four paid $2,168.