You may have to pay fines, penalties and appear in court depending on severity of traffic violation. For a traffic ticket to affect your auto insurance it has to go onto your Motor Vehicle Records (MVR). If insurers cannot see anything in your MVR they cannot apply a surcharge for it. Do parking tickets affect car insurance? To answer this question we need to look at what sort of a violation it is.
Your Motor Vehicle Records
Every state in the US keeps motor vehicle records (MVR) on every driver’s license holder. This record shows license status, traffic violations and accidents. Companies can check on these records whenever they choose to do so. Usually, any negative note on record affects insurance rates. If you want to find out how different types of penalties affect your rates you can read this post titled; how much does my insurance go up after a ticket.
The good news is that parking tickets don’t show on your motor vehicle records and therefore insurance companies cannot even see it, let alone apply a surcharge for it.
Traffic Moving Violation vs. Non-moving Violation
Generally, breaking your state’s traffic laws and driving regulations will result in a moving violation ticket. Some of the examples to moving violation are speeding, reckless driving of any kind, improper turning or passing and driving under the influence of alcohol or other substances. Moving violations affect your automobile insurance rates in varying degrees depending on its severity.
A non-moving violation covers other minor tickets for unsafe vehicles, faulty lights, overloading, obstructing traffic, parking and registration violations. Do non moving violations affect insurance? The answer is; non-moving violations don’t affect insurance rates and parking tickets are considered to be a non-moving violation.
In summary, parking and camera tickets don’t go on your driving records and therefore they don’t increase insurance. Only moving violations that were received after a police officer identified the driver by checking the license will go into MVR.
How Do Parking Tickets Affect Insurance Indirectly?
Leaving your car in a wrong spot can only get you an annoying fine but it can cause all sorts of problems if unpaid. Parking penalties cannot affect insurance directly. But there are ways unpaid fines for it can creep into system and affect your premium indirectly.
Unpaid Parking Tickets: One major problem with them is that they can spiral into large sums with further penalties for late payment and interest that it may now be financially difficult to pay them. Furthermore, local authorities usually pass it onto a collection agency for quick payment or they may choose to file in small claims courts against the owner of the vehicle when fines are left unpaid. Collection agencies usually notify credit agencies for non-payment that affects your credit score. However, the real impact would be seen when a court judgment is registered against you for non-payment. Court Judgments usually affect credit score seriously and insurance score as a result that can cause increase on insurance premium up to 20%.
Vehicle Registration Issues: In some states unpaid parking fine can affect your vehicle registration. DMV can refuse to renew or suspend your license. You will probably receive a reckless driving citation when you are involved in an accident with an unregistered vehicle.
So, you should just pay it in time, if you don’t want a parking ticket affect your insurance in anyway.
Tickets and Insurance Rates
There are reasons why most auto insurers only sell policies for 6 months. They don’t want to be locked into an insurance contract with a reckless driver. Receiving tickets for speeding, reckless driving and other moving violations are seen as signs of increasing risks in relation to insuring such drivers. It is no secret that it is harder to get cheap insurance for bad driving record. Insurance companies can apply a surcharge for such drivers as soon as these tickets go onto their records.
It is only fair that companies charge more for higher risk drivers. However, parking your car in a spot you shouldn’t have isn’t considered to be a risk as far as insurance concerned. That is why parking tickets don’t increase car insurance.