The average Fort Worth driver pays around $775 per year for their car insurance. That's higher than the state average of $677, so you'll want to keep your rates as affordable as possible. Yet, frequent mishaps behind the wheel might cause your rates to go up. One of the clearest signals that you might face a rate hike is if you receive a driver's license suspension. Why do these penalties cause your rates to rise?
Why License Suspensions Occur
There are a few different classifications of losses of driving privileges.
- A license suspension is a probationary period during which you cannot drive. You'll be able to resume driving on the same license after you have met certain benchmarks.
- A revocation is a permanent loss of your driving privileges. These often last indefinitely.
- Some states place drivers on license restrictions. They might limit how far a driver can travel, or the hours in which they can operate.
The reason a loss of privilege might occur is because a driver has shown they are a severe risk to others on the road. The limitation or removal of privileges might be one of the only ways the authorities can control this risk.
Some of the penalties that might lead to loss of privileges include:
- Severe or frequent at-fault accidents
- Multiple speeding or reckless driving tickets
- Commission of a crime behind the wheel
After you lose your privileges, you'll need to let your insurer know. They'll likely find out anyway, so it is never a good idea to hide this charge. Even so, you might face some challenges with your coverage afterwards.
Why Car Insurance Rates Rise After License Losses
When you lose your license, you legally cannot drive, and should not attempt to do so. The state now classifies you as a significant risk. This risk will become clear to your insurance carrier.
Because of this new level of risk, you likely have a higher chance of filing a claim on your car insurance. That means your insurer also has a higher chance of having to pay on your behalf. That is a cost risk to them. As a result, they might have to raise your premiums to accommodate these risks. In some cases, the risk will even prove too high, and the insurer might cancel your coverage. If you hadn't gotten a license suspension, you might have been able to avoid the rate hike.
The bottom line is, you should strive to always keep your license active and unrestricted. You'll be able to hit the road around Fort Worth while keeping an affordable insurance rate.