The Ticket Trap: Navigating Auto Insurance Hikes

Getting a ticket can have a significant impact on your auto insurance rates, and the consequences can vary depending on several factors, including your driving history, the type of violation, and your location. While a single ticket may not always affect your insurance rates, multiple speeding tickets or more severe violations can result in higher premiums. The increase in insurance rates can range from a few hundred to a thousand dollars more per year and can last for several years. Additionally, the impact of a ticket on your insurance also depends on the policies of your insurance company and the state you live in. In some states, insurance companies are restricted from increasing rates for minor violations or are required to reduce surcharges for each year of safe driving.

Speeding tickets

The effect of a speeding ticket on your insurance depends on a variety of factors, such as how fast you were driving, your state, your insurance company, and your driving record.

If you get two or more speeding tickets in three years, you can count on an insurance rate increase. However, if you get your first and only speeding ticket during this period, it may not affect your insurance at all. It depends on how your state and insurer treat the violation.

The amount your insurance rate may go up will vary by insurer. You may lose out on a "'good driver'" discount or other relevant discounts.

Insurance penalties for traffic violations don't always align with what drivers assume is the most dangerous behaviour. For example, getting a ticket for driving too slowly can spike your insurance rates almost as much as speeding in a school zone.

The more severe the violation, the bigger the insurance penalty. If you're caught speeding, how fast you were going over the speed limit will impact the size of your insurance penalty. For example, getting ticketed for driving 6-10 mph over the speed limit increases car insurance rates about 20%, while speeding 21-25 mph over the limit raises rates by almost 26%.

In some states, speeding tickets can increase insurance rates by a significant amount. For example, in Hawaii, insurance rates could go up by 90% for driving 11-29 mph over the limit.

Moving violations

The Zebra's analysis of 61 million rates across the United States found that hit-and-run violations and refusal to take a breathalyser test resulted in car insurance rate increases of 82.2% ($1,209) and 74.1% ($1,089), respectively. Less serious moving violations, such as not wearing a seatbelt and driving without headlights, lead to smaller rate hikes of 4.0% ($59) and 3.4% ($51), respectively.

The impact of a moving violation on your insurance rate may also depend on other factors, such as whether it is your first ticket, how long it has been since your last offence, how much faster than the speed limit you were driving, and where the violation occurred. Generally, your rates may not increase after your first ticket, but they are likely to rise if you receive two or more tickets within three years.

In addition, the impact of a moving violation on your insurance rate may vary depending on your state and insurer. For example, a Pennsylvania driver could pay 13% more for insurance after getting a speeding ticket, while a North Carolina driver could pay 48% more for the same offence.

Insurance rate increases

The cost of car insurance typically goes up about 24% to 26%, after a speeding ticket, with some sources citing an increase of up to 43%. The Zebra reports that a single traffic ticket can raise car insurance costs by as much as 82%. However, the increase will depend on several factors, including the driver's prior record, the severity of the speeding ticket, and the state and insurer's treatment of the violation.

Traffic violations, including speeding tickets, can stay on a driver's record for three to five years, depending on the state. For example, in New Jersey and Texas, insurance companies can apply surcharges for three years, while in Massachusetts, they can do so for up to five years. Some insurance companies and state laws will decrease the surcharge for each year the driver goes without another incident.

Insurance rates typically increase when it's time to renew the policy. Insurers usually review the driver's Motor Vehicle Record (MVR) at policy renewal, so if a speeding ticket is on record, the driver can expect a rate increase at that time.

How to mitigate insurance rate increases

There are several ways to lower insurance rates after a speeding ticket:

• Take a safe driving or state-approved defensive driving course.
• Ask for discounts, such as multi-line discounts, car safety discounts, or discounts for paying the premium in full or going paperless.
• Shop around and compare insurance quotes from different companies.
• Raise the deductible, which will lower the premium.
• Reconsider the type of car driven, as newer and more expensive cars tend to be more costly to insure.

Driving history

A driver's history is a crucial factor in determining auto insurance rates. A clean driving record can help keep insurance costs low, while violations and accidents can lead to higher premiums. The impact of a traffic ticket on insurance varies depending on the type of violation, the driver's record, and the state and insurer's policies.

For example, a speeding ticket may not affect insurance rates for a first-time offender, but it could result in losing a safe driver discount. More serious offences, such as driving under the influence (DUI), can significantly spike insurance rates and may even lead to policy cancellation or suspension of the driver's license. The impact of a DUI can last for a decade in some states, affecting insurance rates and eligibility for safe driver discounts.

In general, moving violations, such as speeding or running a red light, are more likely to increase insurance rates than non-moving violations, such as parking tickets or broken taillights. The severity of the violation also matters—a minor speeding offence may have a smaller impact than speeding in a school zone. Additionally, the number of tickets matters, with insurance rates increasing for two or more speeding tickets within a three-year period.

The impact of a traffic ticket on insurance rates can vary by state and insurer. Some states, like Pennsylvania and North Carolina, impose higher penalties for speeding tickets, while others, like California and Indiana, have different penalties for the same offence. The duration of the impact also varies, with insurance rates typically affected for three to five years after a violation, but this can be longer for more severe offences.

State laws

In California, a drunk or drugged driving violation (DUI) can increase insurance rates by 181% or $3,200+, while in Indiana, the same offense raises rates by only 42% or $480+. In California, a DUI violation will impact a driver's insurance rate for 10 years, whereas insurers in other states typically consider violations on a driver's record for three years.

In Pennsylvania, a single speeding ticket can result in a 13% increase in insurance rates, while in North Carolina, the same offense can lead to a 48% increase. In New York, a single speeding ticket can increase insurance rates by 6% for minimum coverage and 7% for full coverage.

In Idaho and North Carolina, state laws prohibit insurers from raising rates based on texting violations. However, in Missouri, a texting while driving ticket can add points to a driver's record, leading to higher insurance premiums. Under Missouri state law, two or three points may be given for excessive speeding, and accumulating eight points in an 18-month period will result in a license suspension.

In Arizona, three points are added to a driver's license for a speeding violation, and accumulating eight or more points in 12 months can result in a license suspension or the requirement to attend traffic school.

The Driver License Compact is a program that facilitates the sharing of information between states regarding driving records. If an individual receives a traffic citation in a member state, it will be reported to their home state's Department of Motor Vehicles (DMV). Forty-six states and the District of Columbia are part of this compact.

Impact of tickets on insurance rates

The impact of tickets on insurance rates depends on the type and seriousness of the violation, the individual's insurance history, and the speed at which they were traveling when cited. A single speeding ticket may not always increase insurance rates, but multiple tickets or excessive speeding can have more severe consequences.

Good driver discounts

Some insurance companies offer special rates or discounts for safe drivers. However, receiving a traffic violation may result in the loss of these discounts, leading to higher premiums.

Frequently asked questions