Do Speeding Tickets Affect Your Insurance? | MoneyUnder30

If you get pulled over by the police, one of the first things you ask yourself is how much it’s going to cost me. That’s a completely valid question, because speeding tickets have two components: the cost of the citation and the increase in your insurance that will likely follow.

why speeding tickets affect your insurance rates

Whether it’s auto insurance, life insurance, homeowners insurance, or business insurance, insurance companies base the premiums they charge largely on the degree of risk they’re assuming when writing a policy.

Reading: How much do speeding tickets affect insurance

Risk is the assessment, based on past performance, that the company assigns to the probability that it will pay a claim on your policy at some point. the higher the risk, the higher your premium.

When it comes to car insurance, your risk is largely determined by your driving record, particularly in recent years. Speeding is the most common of all traffic tickets. it is also one that is considered a strong indicator of at-fault accidents. that increases the likelihood that the insurance company will have to pay a claim.

In order to include that higher risk in the policy, you will be charged a higher premium to offset that expected risk. The company will naturally check your driving record at the time you purchase the new policy. but they will also review your driving record periodically after that. if any traffic violations show up on your record, your insurance premium will likely go up.

If you rack up too many violations, the company might even cancel your policy.

changing insurance companies can help

Each insurance company has a different view of the impact of a traffic ticket on your insurance premium. you may find that you can get a lower premium if you choose a different company. Some insurance companies may not increase your premium for a single violation, and others may increase it slightly. still others might hit you with an insurance rate increase that will go away!

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here is a list of the best auto insurance companies operating in your area.

read more: the best car insurance companies for young adults

how far from the speed limit further affects your insurance rates

Speeding tickets are not an either/or situation. it’s often a matter of degree: how far over the limit you were driving. Each insurance company has its own way of recognizing speeding violations.

Some insurance companies will not increase your premium for a first offense. others will not increase your car insurance rate unless you are speeding more than 15 mph over the posted speed limit.

State law is also a factor. Most states operate on a point system, where you will be assigned one or more points per violation on your driving record.

insurance.com provides a traffic ticket calculator tool that will allow you to estimate the insurance increase for a single violation. Testing the tool, I found that a speeding ticket between 15 and 29 mph over the speed limit will result in a 12% premium increase as a national average. that’s for a driver in the 25-34 age range. it could be more or less for other age groups.

also varies by state. for example, the same violation will result in a 7% increase if you live in georgia or new jersey, 8% in california, and 12% in new hampshire.

multiple violations matter even more

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If a single speeding ticket causes your insurance to go up, two or more will have an even bigger impact. You may even find that an insurance company that is fairly lenient on the first offense will be less lenient on the second or third offense.

A lot also depends on how the point system works in your state.

for example, in california you can receive a point for speeding. (A point will usually be removed after 39 months.) the accumulation of several points could lead to the revocation or suspension of the license if…

• receive four points or more in 12 months,
• six points or more with 24 months,
• or receive eight points or more within 36 months.

The more severely your state classifies your driving record, the more your insurance premium will likely increase in the event of a speeding ticket.

read more: got a ticket for texting while driving? this is how your insurance could be affected

what to do if you have a speeding ticket

Speeding tickets are bound to happen. sometimes you are traveling on a road where the speed limit drops suddenly and unexpectedly. other times you’re just distracted and not paying close attention to the signs.

but if it does happen and you do get a ticket, here are strategies you should implement right away:

• Dispute the speeding ticket: In most cases, it will be your word against the police officer’s, so it could be a long shot. But if you win your case, the insurance company won’t take it into account.
• Slow down from now on: If you already have a speeding ticket, adding a second one will make things much worse. be more mindful of your speed, particularly in areas that are heavily patrolled.
• Take a defensive driving course: Some states will remove a traffic violation from your record if you take a course. some courses can even be taken online. taking the course will come at a cost, so you’ll have to weigh that against the cost of the ticket and the increased premium over the next three years.

summary

As you can see, getting a speeding ticket will probably cause your premium to go up, but it doesn’t have to be the disaster you’d expect it to be. Follow these strategies to minimize damage.

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Source: https://amajon.asia
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