How your driving habits influence your car insurance costs

Your driving habits play a major role in deciding how much you pay for car insurance. Many drivers believe factors like age or car model are the only influencers, but your behaviour on the road can have an equal, if not bigger, impact.

Why do insurers care about driving behaviour?

Insurance companies often calculate the risk when deciding the premium. The riskier you drive, the higher the chance of claims. That means higher premiums for you. Insurers use your driving record, claim history and even telematics to assess this risk accurately.

Factors that define driving behaviour

Below are some key behaviours that insurers monitor:

• Speeding: Constant speeding increases accident risks and hence pushes your premium up.
• Harsh braking: Frequent sudden brakes show rash driving.
• Sudden acceleration: Quick acceleration can mean aggressive driving.
• Late-night driving: Driving during odd hours increases the chance of accidents due to low visibility and fatigue.

How poor driving habits increase premiums

Let’s break down how bad habits affect your premium:

• More claims: Frequent accidents mean more claims, which directly increase your premium.
• Penalties: Traffic fines and violations add negative points to your record.
• Low No Claim Bonus (NCB): Safe drivers earn higher discounts through the No Claim Bonus. Bad drivers miss out.

How good driving saves money

Maintaining good driving habits helps you get affordable premiums, like:

• Consistent speed: Following speed limits reduces the chances of accidents.
• Safe distance: Keeping distance prevents sudden braking.
• Smooth acceleration: Driving safer reduces wear and tear.
• Regular vehicle checks: Well-maintained cars have fewer breakdowns.

Using telematics to monitor driving

You can use telematics devices, which track your driving habits in real time. Good driving can get you discounts from your car insurance provider, while poor behaviour could increase costs.

Importance of No Claim Bonus (NCB)

NCB is a reward for not raising claims in a policy year. This can lower your premium by up to 50% over a five-year period. Thus, safe driving means more savings.

Why you should use a car insurance app

A car insurance app helps you:

• Check policy details easily
• File claims quickly
• Renew insurance without hassle
• Track No Claim Bonus
• Get reminders for policy renewal

Using a car insurance app saves time and ensures you never miss deadlines for policy renewal.

How to improve your driving and lower premiums?

Here are practical steps to get lower premiums:

• Follow traffic rules strictly
• Avoid distractions like mobile phones while driving
• Don’t drive when tired or under stress
• Maintain your car regularly

Besides good driving, try these:

• Opt for a higher voluntary deductible, but you should be ready to pay out of pocket during claims.
• Install anti-theft devices
• Bundle policies for discounts
• Compare plans before renewing

What to do after an accident

Even the safest drivers can have accidents. Here’s what you should do:

• Stay calm and check for injuries
• Call the police and file an FIR, if needed
• Take photos of the damage
• Inform your insurer immediately
• Use your car insurance app to file the claim

How insurers use driving data

Insurers may check:

• Your claim history
• Driving fines
• Accident records
• Telematics data (if you opted in)

They combine this to decide your risk profile and set your premium.

Conclusion

Safe driving does more than protect lives; it saves money, too. Keep your driving habits in check and use technology like a car insurance app. This will help you to enjoy lower premiums for years to come.