New traffic law from August 1st means insurance will know about every traffic violation in the US – violators face higher rates

THOUSANDS of drivers could pay more for car insurance after August 1 after one state changed its insurance calculations.

The state hadn’t changed its reporting rule in more than 50 years and lagged behind its peers in auto insurance reporting before the new highway laws.

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Starting August 1, North Dakota will begin reporting all traffic violations to insurance companies, marking a significant change in how the state handles traffic violations.

Currently, only infractions that accumulate three points or more are shared with insurers when they request a driving record.

But with the new regulations, any traffic fine, regardless of severity, will be reported to your insurance company.

Authorities said some auto insurers believed the drivers had a clean driving record, when in fact their licenses had been suspended for repeated minor violations.

Police in the region hope the change in rules will make drivers more careful on the road.

“This means drivers will pay more attention to how they are driving and be more responsible on the road,” Sergeant Wade Kadrmas of the North Dakota Highway Patrol told the local NBC affiliate. KFYR-TV.

Kadrmas said drivers can avoid higher insurance rates by slowing down on the highway.

“These types of violations would be reported,” he added.

State Insurance Commissioner Jon Godfread told the station that the Department of Transportation has suspended some driver’s licenses because they “accumulated too many points from these minor traffic violations.”

But insurance companies were unaware of the violations due to notification rules.

North Dakota has not changed its insurance rules since 1970.

Sergeant Kadrmas said drivers can keep their rates low if they remain vigilant on the road.

“Be responsible [and] do your job as a driver”, he advised.

“Pay attention to the roads, obey all traffic signs, obey all speed limits and you should not have any problems with your insurance company or the authorities.”

CHANGE OF INSURANCE

Auto insurers have struggled with rising vehicle costs and rising accident rates.

Modern vehicles come standard with more advanced technology, including more cameras, displays, chips and batteries.

Although cars continue to deploy more safety technology, advancements make vehicle repairs more expensive.

Additionally, drivers have suffered a historic number of motor vehicle accidents since 2020, according to the National Road Traffic Safety Agency.

Consequently, insurance companies increased monthly rates for drivers.

Americans are paying an average of 18% more on car insurance compared to 2020.