Do Speeding Tickets Raise Insurance Rates?

Getting caught speeding raises a few questions in your mind immediately. These are how much fine you will pay, how many points will be added to your license and how much your auto insurance will go up. The answer to last concern isn’t straightforward because many factors are considered when pricing a policy.

Your first speeding ticket may not raise your insurance premium in some cases. Which state you live, how much you were over the limit, your driving history and carrier determine the possible rate hike. While some vehicle insurers may not take notice of the first offence others can increase your rates substantially. That is why it is important to shop around to find the most tolerant carrier.

Usually, motorists start seeing their insurance go up from their next renewal after a traffic violation. A ticket needs to show up on your Motor Vehicle Records to affect your rates.

Large number of insurers would go easy on an established good driver who has just got a speeding ticket, especially if it wasn’t too much above the limit. Some companies may hold back from raising the rates. However, the main reason people see their insurance to go up after a traffic violation citation is that they lose the discounts offered for good driving history. These discounts would be around 10 – 30% depending on where you live and your insurer. Taking them away will naturally result in higher premiums.

As a general rule, you need to have two or three violations (like reckless driving, fleeing scene of an accident and high speed) before you are categorized as high risk driver by most companies. In that case, your rates can substantially go up. Some companies may even refuse renewal while several of them would quote as much as twice higher price for renewal.

If you see abnormal rise in your policy cost you need to shop around to find lower quotes for the same coverage. There isn’t really any other way of making sure that you are still getting a good deal and not heavily penalized for your driving record.

How Much Does a Speeding Ticket Increase Insurance?

This large depend on which state you live in. For example, California is one of those states where you will see large premium increase due to tickets. This state doesn’t allow credit check and that forces underwriters to rely on past information heavily. In other states, companies can look at details like your financial affairs to predict the chance of a claim and negate the possible hikes.

That is why you may see your rates raised slightly or a lot, depending on your past history, credit score, where you live and current carrier. On average across the country, premiums can go up about 15% after the first violation. And it can increase a lot more after the second speeding ticket and you may face serious problems like non-renewal after the third.

Companies try to predict the chance of a large claim. Someone who is known to like driving fast is likely to cause a high-speed collusion that can cost thousands of dollars to insurers. Some carriers prefer to stay away from such risky motorists while others deal with it by increasing car insurance rates. Your job is to find the insurer who will offer you the most affordable coverage with speeding tickets by getting several quotes.

Another point to keep in mind is that those traffic violation citations can stay on your MVR at least three years. That means they will keep influencing your premium in that period. But it will be less and less every year providing you don’t get another one.

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