Will a Speeding Ticket Increase my Car Insurance?

If you, your spouse, your teen or any other driver on your car insurance policy have recently received a speeding ticket, it could affect your premium. Learn how a speeding ticket can have an impact on your auto insurance.

First Offense

For teens or drivers with a good record who have just received their first speeding ticket, it may not affect the rates on your policy. However, different factors play a role on whether your insurance jumps after a speeding ticket including, the laws in the state where you live (example: some states have laws that govern when and why the insurance company can raise the rates — hence, they aren’t allowed to raise a policyholder’s premium after just one ticket). Another influential factor in whether your insurance rates increase after a speeding ticket is your insurance provider — some insurance companies will take the severity of the violation into consideration and raise the rates, according to each situation while others raise the rates a pre-determined amount per the type of violation. Another factor that can affect whether your insurance changes, as a result of a speeding ticket is if you have specific clauses on your policy or are receiving a discount for safe driving. Therefore, it is difficult to provide a comprehensive answer that covers every situation.

Here is an example:

In 2010, the average car insurance premium for drivers in the state of California was $1,308 (for comparison purposes, the national average was $1,578).

Most car insurance companies offer drivers with a clean record — a safe driving discount (typically, 25 percent savings). In this case, safe California drivers could save, on average, $327 per year. Therefore, the average cost for California drivers with a clean record is approximately $981 annually.

One speeding ticket could eliminate the discount, which would increase the base premium by about two percent. The increase totals to about $356 per year and about $1,068 over a three year span (insurance providers typically, charge a surcharge for three years).

Multiple Offenses/Excessive Speeding

While a minor, first offense may (or may not) affect your insurance rates – having multiple offenses or more serious charges such as, reckless driving may cause your insurance premium to skyrocket. In fact, multiple offenses or being caught driving at excessive speeds can result in a loss of coverage from your current insurance provider. In addition, being dropped by your existing insurance provider could place you in a high-risk insurance category making your insurance rates very expensive or making it difficult to find an insurance company that will extend coverage to you.

If your insurance rates do increase, either it will take effect at your next renewal or when you choose a new insurance provider.

Speeding can have serious consequences (as far as, your car insurance is concerned) ranging from having to pay for a ticket to experiencing a slight or major increase in your insurance premiums and from getting dropped by your current provider to having difficulty finding an insurance company to insure you, as well.

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