On the Radar: How Traffic Violations can Influence your Insurance Premium
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07 October 2025: Navigating the road isn’t just about moving from point A to point B. The way you drive has far-reaching implications, particularly when it comes to your insurance cover, including your premium. Whether it’s a speeding ticket or a minor traffic violation, each offence can leave a mark on your driving record and, more importantly, your insurance cover.
With the new Administrative Adjudication of Road Traffic Offences (AARTO) points system scheduled to begin its phased rollout from 1 December 2025 in major municipalities with full implementation and demerit point allocation from 1 September 2026, Londiwe Mataga, Head of Governance from Miway Insurance brings awareness that insurers are likely to use the system to further evaluate risk when calculating premiums.
“There is a direct correlation between driver behaviour and insurance premiums. Insurers calculate premiums based on risk and the higher your perceived risk of causing an accident, the higher the premium you’ll pay.”
Under the AARTO system, traffic violations such as speeding, failure to wear a seatbelt, and running red lights are all risk indicators to insurers. They indicate that a driver is more likely to be in an accident and, as such, is more likely to submit a claim.
When you receive a traffic fine, the immediate consequence is often a monetary penalty. However, as Mataga explains, the long-term impact could be far more significant.
“Enhanced access to driver behaviour data such as demerit points and infringement records empowers insurers to refine risk assessments more accurately. This data enables insurers to develop more precise risk profiles for individual drivers, adjust premiums based on actual driving behaviour, and identify high risk clients for targeted interventions or potential exclusions. As a result, driving behaviour and traffic fines play a more direct role in influencing insurance costs and coverage decisions.”
For more serious offences like reckless driving and driving under the influence (DUI), insurers may not only increase premiums substantially but, in some cases, even refuse to provide cover due to unacceptable risk for the insurer. “Keeping a clean, legal record therefore goes a long way,” Mataga adds.
To keep premiums as low as possible, Mataga says the most effective approach is to simply drive responsibly, following the rules of the road and avoiding traffic violations. “Driver behaviour is a critical determinant of road safety and insurance costs. Risky actions such as speeding, distracted driving (including mobile phone use), aggressive driving (like tailgating and rapid lane changes), fatigue, and driving under the influence significantly increase the likelihood of accidents, vehicle damage, and reputational harm.
These behaviours not only lead to higher incident rates and claims but also directly impact insurance premiums, as insurers often adjust rates based on driving history, claim frequency, and risk profiles. Therefore, proactive management of driver behaviour is vital.” Mataga concludes.
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