What changes should I expect with my car insurance rates after a ticket?
Speeding has many consequences, including a possible increase in car insurance rates after a ticket. So how much will car insurance go up after a speeding ticket? Read on to find out.
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UPDATED: Jun 15, 2022
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- Speeding tickets can increase your insurance rates
- Driving records are one of many factors used to determine insurance rates
- Avoiding speeding and other traffic violations can help keep your insurance costs low
Does a speeding ticket affect your insurance? Yes, unfortunately, the consequences of speeding go beyond receiving a ticket. Drivers may be prepared to pay a fine, but this seemingly innocent traffic violation can become even more financially painful. Many drivers in the United States have seen a significant increase in their insurance rates after receiving a speeding ticket.
Here’s how speeding tickets affect insurance rates and what can be done to find the cheapest car insurance companies following an increase.
Do speeding tickets affect insurance rates?
So how much does a speeding ticket raise insurance premiums? Yes, traffic tickets can raise your insurance rates, but not all drivers are impacted the same by this traffic violation. Some insurance companies may overlook the first speeding ticket, while others may choose to increase the driver’s rates. However, much more goes into determining car insurance rates than a driver having a speeding ticket on their record.
If you’ve shopped for car insurance, you’ve probably noticed the differences in quotes. Insurance costs vary because each insurance company uses a different rating system. However, according to the Information Insurance Institute (III), your driving record is just one of the common factors car insurance companies use to determine rates.
Car insurance companies use the following factors to calculate insurance rates:
- Vehicle use
- Type of car
- Type of insurance coverage
Every customer’s driving record is used to determine their insurance rates. It gives insurance companies insight into the type of driver they are and allows the insurance company to assess risk. For example, a driver with a speeding ticket is viewed as a high risk to insurance companies, so their insurance rates will likely be higher than a driver with no speeding ticket on their record.
Increases in insurance premiums do not happen immediately after a driver receives a speeding ticket. However, your insurance premium can increase once your insurance company has re-evaluated your insurance risk during policy renewal and discovers one or more speeding tickets on your driving record.
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Can a speeding ticket result in my insurance policy being terminated?
Insurance companies may increase your rates when it’s time to renew, but the consequences of a speeding ticket can be harsher. Car insurance companies can terminate your policy in severe cases instead of renewing it at a higher rate. This action is known as non-renewal.
What can be done to lower car insurance rates after a ticket?
Increases vary by state and insurance company, but the national average of an insurance rate increase is 24%, which can equal almost $380 a year, according to an analysis by Forbes. However, keep in mind your rate increase could be more or less than the national average. And even if it is just by a few dollars, a rate increase is not ideal when you were once getting insurance for a rate that fits perfectly into your budget.
Luckily, if your insurance premium is raised after you receive a speeding ticket so that you can’t afford car insurance, there are things you can do to lower the cost and save money on your car insurance:
- Adjust your insurance deductible. Raising your deductible lowers your insurance rates. However, if you choose to increase your deductible, make sure you can afford the cost should you get in an accident.
- Complete a defensive driving course. Defensive driving courses are designed to improve a driver’s skills, and upon completion of a course, their insurance company may offer a discount. The NSC provides its defensive driving course in select states, but you can check with your insurance provider to see if this discount is available and who offers the course.
- Inquire about available discounts. Depending on the state and insurance company, drivers have access to a variety of discounts, including low annual mileage, student driver, and anti-theft device discounts.
- Avoid additional claims and violations. Each claim or violation has the potential to increase your insurance rates. If you avoid additional claims and violations, your insurance company could reward you for being a safe, responsible driver by offering a discount.
- Improve your credit score. Insurance companies may review a driver’s credit score when calculating rates, so you could potentially lower the cost of insurance if you improve your score.
- Switch to a different insurance company. Shopping around for car insurance can help you find a cheaper rate. Again, the rating system used by each company varies, so you could potentially save money by switching to a different company, even with a speeding ticket on your driving record.
The Bottom Line: Car Insurance Rates After a Ticket
The actual cost of speeding often includes more than just the dollar amount listed on the ticket. How a speeding ticket affects insurance rates is based on several factors, but drivers will likely pay more for their insurance if there is a speeding ticket on their driving record. Therefore, avoid speeding and other traffic violations to help keep your insurance rates from increasing.
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