By: Lola Aquilar
If you’re caught going over the speed limit and end up with a ticket, it will likely affect your insurance rates. Since speeding tickets become part of your driving record, your insurance company will consider it when determining how much you have to pay for your policy. People with moving traffic violations are considered higher risks on insurance policies, so getting coverage can be more expensive.
What Do Insurance Companies Consider When Setting Rates?
Nearly all states require auto insurance; however, some states like New Hampshire and Virginia offer other options like proof of other financial responsibility. Most people do not select that option. Car insurance is a necessary option for most drivers. So, what does the insurance company consider when determining how much you have to pay for your policy?
- Some factors that your insurer will consider include:
- Your driving record
- Number of accidents you have been responsible for
- How many miles you drive daily or annually
- Your credit score and history
- Your driving record will include any moving violations you have received and the details of those violations, which will also impact the cost of your auto insurance policy.
How Much Will My Insurance Rate Go Up After a Speeding Ticket?
It is impossible to determine exactly how much your insurance rate will go up after receiving a speeding ticket. The insurance company will consider:
- Your past driving record
- How many moving violations you have had
- The time since your last moving violation
- The speed you were actually going
- How far over the speed limit you were going
- Where you received the moving violation (e.g., in a school zone or construction zone)
It is possible that a first-time speeding ticket for five miles per hour over the speed limit on a highway will not greatly impact the cost of your policy. However, if you have had several other tickets within a short period of time or there are other aggravating factors that make the situation worse, you may face a significant increase. In the worst case scenario, the insurance company may choose not to renew your policy.
Ways a Speeding Ticket Can Impact Your Car Insurance
In addition to increasing the cost of your policy, a speeding ticket can have other effects on your car insurance as well.
- Increased cost over time – Many more experienced drivers get discounts or a cost reduction over time. If you get multiple traffic violations, your policy cost may increase over time instead of decrease.
- Loss of coverage – If you receive multiple traffic violations or have serious accidents on your driving record, you may lose your insurance altogether. The insurance company may opt not to renew your coverage once your current policy runs out.
- Inability to find coverage – If you have serious infractions on your driving record, you may have trouble finding car insurance coverage from any private insurance companies. You may have an option for coverage through a state-run risk plan or an assigned risk plan.
Tips to Avoid Premium Increases or Loss of Coverage
If you do receive a speeding ticket, there are actions you can take to prevent a significant premium increase or loss of coverage.
Focus on driving safely and avoid all accidents. Whatever you do, don’t get caught speeding again. You may also be able to take a safe driving course to reduce your premium.
Consider changing your car insurance coverage. If you have “full coverage,” you might consider opting for state minimums. However, you should seriously consider your personal insurance needs before making these changes. Additionally, if you are leasing your car or still paying on a car loan, you may be required to maintain a higher level of coverage.
Consult with a Speeding Ticket Attorney to Learn Your Options
If you are given a speeding ticket, you should call a lawyer and find out if you have options to reduce the moving violation to an infraction that won’t go onto your driving record. Sometimes an attorney can get you a deal where you avoid the harshest consequences of a speeding ticket.