Does a Speeding Ticket Affect Your Insurance Rates?

Does a Speeding Ticket Affect Your Insurance Rates?

May 19, 2021 Off By Glespynorson

Have you gotten a speeding ticket? Wondering how that is going to affect your insurance rates? Don’t worry; you’re not alone in this concern.

Many drivers that have never had any traffic violations before may be stressed about their insurance coverage after receiving your first ticket. Even if that first ticket doesn’t end up affecting your coverage, now is a better time than ever before to find out what might happen if you do get another ticket.

Learn more about how speeding tickets may affect your insurance premium, what you need to do, and how you can reestablish a better rate down the line.

Why Speeding Tickets Affect Your Rates

To understand why speeding tickets increase your insurance premiums, you must understand how your insurance company determines insurance premiums.

Car insurance premiums are based on how likely a company believes you will be to need to file a claim. If you are someone that is likely to file claims frequently, then your insurance premiums are going to be higher. Those that don’t get into any accidents or have a clean record are given cheaper rates because they are statistically less likely to need to file a claim.

Speeding tickets affect your insurance rate because they show that you are not always a safe driver. Receiving a driving infraction proves to an insurance company that you may be a risky driver to insurance, and they will change your premium to match that risk.

Even though a speeding ticket is not the same as causing a car accident, speeding is one of the most common causes of car accidents. Insurance companies will treat infractions as cause for changing your rates.

Points and Insurance Premiums

Most states use traffic points systems to track driver infractions, suspend licenses as needed, and otherwise monitor the driving activity of an individual. If you have points on your license, that could cause your rates to go up.

Do you have to tell your insurance company about points? No, but they’ll find out about them anyway. Points are entered into an online database that insurance companies can review, and most companies will review these numbers annually. Additionally, your insurance company will likely be notified when you receive a ticket.

So while you don’t need to go out of your way to alert your insurance company about any points, you can expect them to have that knowledge sooner or later.

First Time Forgiveness

If it is your first time getting a speeding ticket, many states require insurance companies to forgive this and not raise your rates. Some insurance companies implement this practice even in states where it is not required.

Check your insurance coverage plan to find out if your first incident will be forgiven. If the terms are unclear and you’d like your company to consider doing this, contact them and see if you can talk it out with a claims agent.

How To Lower Your Insurance Premium After An Increase

If you’ve experienced an increase in your insurance premium because of a speeding ticket, you might be wondering if you will ever be able to get a lower price again. While it will take time, there are some ways that you can do this.

Prove You Are A Safe Driver

The main thing you will need to do is prove to your insurance company that you are a safe driver. Some insurance companies will have special classes that you can take to do this or other ways to prove your driving skills. Contact or research your insurance company and see if they have anything of this nature.

Get Points Off Your License

Trying to remove points from your license is an excellent start to getting a better insurance rate. While points expiring or being removed will not immediately lower your rate, keeping points off of your license for two to three years will prove that you have committed to safer driving. This will often set you up for better rates.

Change Your Insurance

If you’re desperate to find a cheaper rate as soon as possible, it could be in your best interest to shop around for better insurance rates.

For example, if your rate went up three years ago because of an accident but has not gone down yet, you might be able to find a better rate elsewhere. If you just got a speeding ticket two months ago and are facing higher rates, however, other companies are likely to be similar since the ticket was so recent.

Still, it is worth exploring your coverage options to see what type of plan can fit your budget best.

Different Ticket, Different Outcome

What kind of tickets affect your insurance and which do not?

In most states and with most types of insurance coverage, any traffic ticket or violation that is more than a parking ticket could affect your insurance rate. Many plans will waive first-time tickets if they are not too serious, but even a single ticket could affect your coverage.

There are some types of citations that are likely to have a more significant effect on your insurance rates than other types of citations:

  • Not wearing a seatbelt
  • Speeding tickets
  • Intoxicated driving
  • Distracted driving (including cell phone use)
  • Uninsured driving

Having any of these infractions on your driving record will cause higher insurance premiums for most drivers.

Drive Safe For Great Prices

The best way to keep your insurance rates low is to make sure that you are driving safely. Accidents happen, but traffic violations are very preventable if you take care to pay attention when on the roads.

Still, everyone has bad days. If you end up with a speeding ticket, it’s not the end of the line for your insurance rates. Work with your company to find premiums that you can afford, or start shopping around for more affordable options today.