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What is the Impact of Traffic Challans on Vehicle Insurance Premiums?

Effects of Traffic Challans on Vehicle Insurance Premiums

There are a plethora of factors that affect car insurance premiums at the time of renewal. Now, depending upon the degree of violations, traffic challans can also play a major role in determining the premium rates. 

The reason is that as the severity of traffic violations increases, the risk of providing coverage to the individual rises in tandem, causing a change in the premium amount. Wondering how much a traffic violation affects car insurance premiums?

Keep reading to find out.

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What is the Connection Between Traffic Violations and Insurance?

Breaching traffic rules like driving under the influence, improper road etiquette, and safety measures are all instances where your insurer can revoke your policy or charge a higher premium. A record of violations marks you as a high-risk client, making insurance companies less likely to provide you with decent coverage. 

Thus, traffic violations can have a direct influence on the insurance premium. Here are a few ways in which traffic violations affect insurance: 

  • Driver’s history 
  • Number of previous accidents or traffic challans
  • The severity of violations.

Common Traffic Violations and Their Penalties

Most drivers have committed some traffic violations while driving on the road. Whether it's speeding or switching lanes on a highway, all small and big violations have a penalty that you must pay for. Read the table below to know the fine you must pay if you commit the following offences:

Traffic Violations  Penalty
Driving without a valid driver's license  ₹5,000 
Driving by a person disqualified for obtaining a Driving License ₹10,000
Driving at excessive speed ₹1,000 - ₹2,000 
Driving dangerously ₹5,000
Driving when mentally or physically unfit ₹1,000
Unauthorised racing of speed ₹5,000
Violation of standards prescribed about road safety, control of noise and air pollution ₹10,000
Plying a vehicle without a valid permit ₹10,000
Not using safety belts by driver, seating passengers and children below 14 years ₹1,000
Violations of safety measures for two-wheeler riders ₹1,000
Not wearing protective headgear ₹1,000
Use of horns in the silence zone ₹1,000
Failure to allow free passage to Emergency vehicles ₹10,000
Unauthorised interference with vehicles ₹1,000
Driving under the influence of alcohol ₹10,000
Jumping red-light  ₹5,000

Note: Penalties for traffic violations will tend to vary across states.

How Traffic Violations Affect Insurance Premiums?

Insurance premiums and traffic violations are inextricably tied together. Driving safely ensures a long life for you and prevents you from paying a hefty premium sum. Acts like irresponsible driving or disobeying traffic rules can affect your driving record and classify you as a high-risk client to insurers. 

As a result, insurance companies are less likely to provide you coverage if you are prone to such accidents and violations, as it would be riskier for them to hold on to you as a client.

Examples of Premium Hikes by Violation Type

Find below the percentage by which your insurance can be affected if you commit the following traffic violations:

Traffic Violation Percentage Increase in Insurance Premium
Hit and Run 82.20%
Refusal of Breathalyser/Chemical Test 74.10%
Driving Under the Influence  73.90%
Racing 73.70%
Reckless Driving 70.40%
Driving with a Suspended License 62.40%
At-fault Accident 42%
Driving with an Open Container 34.90%
Operating a Vehicle Without Permission  32.80%
Passing a School Bus 27%
Improper Passing  23.40%
Following too Closely  23.30%
Speeding  23.20 % 
Failure to Stop at a Red Light 22.70%
Illegal Turn 22.60%

Long-Term Effects of a Poor Driving Record on Insurance

Insurers diligently examine their client’s portfolios before offering coverage. If they find you frequently disregarding traffic laws, they may consider you high-risk and not be inclined to grant you insurance. 

Violating traffic laws often means that you’d be more likely to claim insurance money for any major or minor accidents. Thus, an insurance company is less likely to take on a client with a poor driving record as they pose high coverage risk or will charge higher premiums for providing coverage.

How to Mitigate the Impact of Traffic Violations?

While there isn’t any way to lessen the impact of traffic violations, paying the penalties on time, cooperating with authorities, and being mindful of the laws of the road are sure to help. You should strive to drive without violating any traffic rules. 

Here are the most common ones you can avoid:

Driving Under the Influence

Driving under the influence of alcohol is a punishable offence and can even land you in prison. Not only is it unsafe for all the passengers but also others on the road. If you think you are not fit to drive because of the substances consumed, ask for help or have a designated driver who can drop you home safely.

Violating a Red Light

Running a red light can result in a hefty fine. Advanced technology has made it easier for the police to pinpoint offenders. Be aware of traffic lights to avoid any unnecessary penalties.

Over-speeding

Driving faster than the set limit will result in you receiving a challan for disobeying the law. Watch for the speed limit boards, slow down near heavily populated areas, and avoid driving too fast to overtake another vehicle merely.

Misuse of Seatbelt

The seatbelt prevents you from crashing into what's in front of you in case of an accident or a sudden brake. This is the most common violation for which people are fined. However, it can be easily avoided by putting on the seatbelt right away when entering a vehicle.

Update Your Car’s Insurance

Driving without valid insurance can be concerning, as it is illegal to take a car out on the road without it. Make sure you've paid the latest instalment to avoid the policy being closed. A car without insurance is financially and legally unsafe to drive.

Can You Check Traffic Violations and Their Insurance Impact?

As driving records significantly impact insurance, you can check your record before applying for vehicle insurance. You can go to your nearest Regional Transport Office and request a driving license record. This lets you see if you have an extensive violation record or outstanding fines.

You can also look for unpaid challans generated for your vehicle by visiting the Parivahan website and the ‘Check Online Services’ section.

How to Check Traffic Violations and Pending Challans Online?

Follow the steps mentioned below to access your pending challans and traffic violations: 

  • Step 1: Visit the state's Parivahan website or click here to go directly to the website.   
  • Step 2: Click “Check Online Services” and select “Traffic Challan”. 
  • Step 3: You can enter the challan number, vehicle number, or driving license number along with the captcha mentioned on the screen.
  • Step 4: Click on “Get Detail” to load the challan or any existing traffic violations you might have.

How Can Traffic Violations Affect the No-Claim Bonus (NCB)?

Driving safely has its perks. By violating traffic rules less often, you reduce your chances of getting in an accident and filing an insurance claim drastically. Individuals who have not made any claims for the policy within a year receive an attractive discount on the premium cost. 

It is called a No Claim Bonus (NCB) and is provided to policyholders when they have made no claim on their policy within the policy term. If you choose to renew your policy with the same insurance company, you will be eligible for the discount which ranges from 20% - 25%. 

Now that you understand how traffic violations affect car insurance consider being extra careful when driving on the road. Also, if you violate any traffic rules, pay the fine as soon as possible. This way, you can maintain a clean track record, which can greatly help when renewing your vehicle insurance policy.

FAQs about Impact of Traffic Violation on Car Insurance Rates