Traffic Tickets: Insurance Addition Impact Explained

Traffic tickets can have a significant impact on insurance rates, with the potential to increase costs by up to 95% or more. The effect of a ticket on insurance depends on various factors, including the type of violation, state laws, and individual driving records. While minor infractions may not affect rates, more serious violations, such as DUIs or hit-and-run incidents, can result in substantial rate increases or even policy cancellation. Speeding tickets, in particular, can lead to higher insurance premiums, with the magnitude of the increase influenced by factors such as the driver's state, speed, and driving history. Additionally, out-of-state tickets and violations like texting while driving or running red lights can also influence insurance rates, depending on state regulations. To mitigate the impact of traffic tickets on insurance, individuals can explore options like defensive driving courses, traffic school, or consulting a knowledgeable traffic lawyer.

Speeding tickets

The impact of a speeding ticket on your insurance also depends on the law in your state. Some states forbid insurance companies from considering texting tickets or red-light camera tickets for the purpose of setting rates. In states where this is not banned, insurers may treat them as minor moving violations, which can result in a rate increase.

In most states, a certain number of points are added to your license for each traffic violation, and the number of points added varies by state. For example, Arizona adds three points to your license for a speeding violation. If you accumulate eight or more points in 12 months, the state may require you to attend traffic school or suspend your license for up to a year. While insurers do not directly factor points into your insurance premium quote, they do consider the types of violations you have committed and whether you are a high-risk driver.

You can take a defensive driving course to remove a ticket from your driving record and reduce your car insurance premiums. You can also shop around and compare car insurance quotes from several companies to find a cheaper policy.

Driving under the influence (DUI)

A DUI is a major traffic violation and will almost always result in a significant increase in your auto insurance premium. A DUI conviction makes you a riskier customer to insure, and some insurers may even refuse to sell a policy to someone with a DUI on their record. The increase in insurance costs for a DUI conviction can be as high as 93% or more, depending on the state. For example, in California, a DUI can increase insurance rates by 160% ($3,500+), while in Maine, the same offence raises rates by 73% ($1,128+).

The impact of a DUI on your insurance also depends on the specific laws and regulations of your state. Some states may allow for a DUI to be removed from your record by completing a defensive driving course or a similar program. This would prevent the violation from appearing on your driving record and save you money on your insurance premium.

In addition to the financial consequences, a DUI can also result in the need for an SR22 filing, which is a requirement for high-risk drivers. The SR22 form proves that you have the minimum required liability insurance and is typically needed for a period after a DUI conviction.

It's important to note that the presence of a DUI on your record may also affect your eligibility for insurance coverage with certain companies. Insurance companies evaluate your Motor Vehicle Record (MVR) and complete a Comprehensive Loss Underwriting Exchange (CLUE) report to assess your risk. The more incidents and tickets on your record, the higher the chances of being denied inexpensive car insurance.

While a single DUI can have a significant impact on your insurance rates, the good news is that rates tend to decrease over time if you maintain a clean driving record. It's always a good idea to compare insurance quotes from multiple companies, as some insurers may offer lower rates or more flexible policies for drivers with a DUI on their record.

Out-of-state tickets

If you receive a traffic ticket in another state, it is almost certain that your home state and insurance company will be made aware of the infraction. This is due to the Driver's License Compact (DLC), an agreement between 46 states to report traffic violations out of state to the licensing authority in the driver's home state. The DLC does not include non-moving violations, such as parking tickets.

However, whether an out-of-state ticket will impact your insurance premium depends on the laws and practices of your state and insurance company. Some states don't add points for out-of-state tickets, and some insurance companies may not increase your premium after just one moving violation conviction. In addition, some states forbid insurance companies from considering texting or red-light camera tickets when setting rates.

Even if an out-of-state ticket doesn't directly increase your insurance premium, it may still affect your risk profile as a driver. Insurance companies consider drivers with recent tickets or accidents on their records to be higher-risk, making them more likely to file an insurance claim. As a result, insurers may charge these drivers higher rates.

If you receive an out-of-state ticket, it's important to pay the fine. Failure to do so could result in your arrest the next time you pass through that state. Additionally, states that participate in the Nonresident Violator Compact (NVC) will notify your home state if you don't pay a ticket, and your license may be suspended if you don't pay the fine by a certain date.

Minor violations

Minor traffic violations, such as speeding and failure-to-observe, can result in increased car insurance premiums. The impact on insurance rates depends on the type of violation, the driver's record, and other factors. For example, a single speeding ticket can lead to a significant increase in insurance costs, with the average fine for speeding being around $150, and insurance costs rising by $40 to $540+ per year for three years. The severity of the violation also matters; speeding between 6-10 miles over the limit will raise insurance rates by an average of $40 a month.

While some violations, such as parking tickets and other non-moving violations, may not directly affect insurance rates as they are not indicative of driving ability, they can still impact insurance if left unaddressed. For instance, failing to pay several parking tickets or fix a fix-it ticket could lead insurance companies to view this as risky behaviour and adjust rates accordingly.

The impact of minor violations on insurance also varies by state and insurance company. For example, a Pennsylvania driver may pay 15% more for insurance after a speeding ticket, while a North Carolina driver could pay 50% more. Additionally, some insurance companies penalise drivers less for minor violations, with Alfa and USAA mentioned as examples.

To minimise the impact of minor violations on insurance rates, it is advisable to maintain a clean driving record and shop around for insurance policies. Comparing insurance quotes can help identify companies that assign lower penalties for violations. However, it is important to note that insurance companies typically offer the best rates to drivers with clean records.

Moving violations

Speeding tickets are one of the most common moving violations. The impact of a speeding ticket on insurance rates can depend on several factors, including the driver's state, insurance company, driving record, insurance history, and speed above the limit. In some cases, a driver's insurance rate may not increase after their first speeding ticket, but the rates are likely to rise if they receive two or more tickets within three years. The increase in insurance rates due to speeding tickets can range from a few cents for every dollar to upwards of 10% for a six-month policy. The duration of a speeding ticket on a driver's record also varies, typically ranging from three to five years, depending on state and insurance provider.

Other moving violations that can impact insurance rates include running a red light, texting while driving, and driving under the influence (DUI). The impact of these violations on insurance rates can vary across states and insurance providers. For example, a DUI conviction can increase insurance rates by 160% in California but only 73% in Maine. Leaving the scene of an accident, or a "hit-and-run," is considered one of the most severe moving violations, resulting in an average insurance rate increase of 95% or $2,000 per year.

It is important to note that some states allow drivers with their first moving violation to keep the infraction off their record by completing traffic school or a driver safety class. Additionally, insurance companies may offer lower penalties or none at all, even in states with steep cost spikes for violations, so comparing insurance quotes is essential.

Frequently asked questions