Speeding Tickets: Insurance Implications And What You Need To Know

Speeding tickets can have a significant impact on insurance costs, but this isn't always the case. Whether a speeding ticket will affect your insurance depends on several factors, including the state you're in, the insurer, and the severity of the violation. In some cases, a speeding ticket may result in a minor increase in your insurance premium, while in other cases, it may have no impact at all. However, if you have multiple speeding tickets or are considered a high-risk driver, you could see substantial increases in your insurance rates or even have difficulty finding an insurer.

How long does a speeding ticket stay on your record?

The length of time a speeding ticket stays on your record depends on where you live. In most states, speeding tickets may drop off your driving record within 3-5 years. However, in Pennsylvania, summary (non-criminal) traffic offenses will remain on your driving record permanently.

The impact of a speeding ticket on your insurance premium also depends on your insurance company, driving record, insurance history, and the state in which you live. Some insurers may not increase your premium for a first-time offense, while others will. If you get two or more speeding tickets in three years, you can likely count on an insurance rate increase.

You can remove a ticket from your driving record and reduce your car insurance premiums by taking a defensive driving course. Most insurance companies offer various types of insurance, so you could be eligible for a discount if you get all your insurance needs covered by one company.

Insurers consider risk when determining your rate, and if they consider you at a higher risk of filing a claim following an accident, they will generally charge more to cover that risk. The more speeding tickets you get, the more likely your car insurance rates will increase, and the higher that increase will be.

Does the severity of the speeding ticket matter?

The severity of a speeding ticket can indeed affect insurance costs. The higher the speed, the higher the insurance penalty. For example, speeding between 6-10 mph over the limit will increase insurance rates by an average of $40 per month, whereas speeding 21-25 mph over the limit will increase rates by an average of $54 per month. The latter is more reckless and likely to lead to more serious accidents and insurance claims.

The severity of the speeding ticket can also determine how long the violation stays on a driver's record. A speeding ticket typically remains on a driving record for three to five years, but in some states, it can remain permanently. More serious violations will impact insurance rates the most, and for longer. For example, a DUI in California can result in higher premiums for ten years.

The number of speeding tickets accumulated can also affect insurance rates. Insurance companies may not increase rates after a first speeding ticket, but they are likely to rise if a driver receives two or more tickets within three years.

The impact of a speeding ticket on insurance rates also depends on the state and insurer. Some states use a point system for insurance, where points are added to a license for each violation. The number of points added per violation varies by state. For example, Arizona assigns three points for a speeding violation. If a driver accumulates eight or more points in 12 months, the state may require them to attend traffic school or suspend their license for up to a year.

In summary, the severity of a speeding ticket does matter and can affect insurance rates and driving records. The higher the speed, the higher the insurance penalty, and the longer the violation stays on a driver's record. Multiple speeding tickets and more severe violations will also result in higher insurance rates.

What are the financial implications of a speeding ticket?

The financial implications of a speeding ticket can vary depending on several factors, including your location, the severity of the violation, and your driving history. Here are some key points to consider:

Insurance Premium Increase:

Speeding tickets can lead to an increase in your car insurance premiums. The impact on your insurance rates can depend on the laws and regulations of your specific state. Some states may impose stricter penalties, resulting in higher insurance costs. It's important to review the rules and guidelines in your state to understand the potential financial implications.

Duration of Impact:

The duration of the financial impact of a speeding ticket is typically around three years. During this period, you can expect to pay higher insurance premiums. However, the length of impact can vary depending on the severity of the violation and your driving record. In some cases, a single speeding ticket may only affect your insurance rates for a shorter period, such as one or two years.

Number of Speeding Tickets:

The number of speeding tickets you have received within a certain timeframe can also influence the financial implications. Insurance companies may consider you a high-risk driver if you have multiple speeding tickets. This designation can lead to significantly higher insurance rates or even difficulty in obtaining insurance coverage.

Defensive Driving Courses:

In some states, you may have the option to enrol in a defensive driving course to mitigate the financial impact of a speeding ticket. Successfully completing an approved course can help remove the ticket from your driving record, resulting in reduced insurance premiums. However, this option may not be available to everyone, especially those with multiple violations.

Fines and Penalties:

Speeding tickets usually come with civil fines that must be paid. The amount of the fine can vary depending on the location and the severity of the violation. For example, speeding in a school zone often carries higher penalties than speeding on a regular road. These fines can add up, especially if you receive multiple tickets.

Insurance Company Considerations:

Different insurance companies may weigh speeding tickets differently when determining insurance rates. It's worth shopping around and obtaining quotes from various insurers to find the most favourable rates after receiving a speeding ticket. Some companies may offer more competitive rates or have specific policies regarding speeding violations.

In summary, a speeding ticket can result in both short-term and long-term financial implications, including increased insurance premiums, fines, and potential difficulties in obtaining affordable insurance coverage. The best way to avoid these financial consequences is to drive within the speed limit and maintain a clean driving record.

How do insurance companies find out about a speeding ticket?

Insurance companies typically find out about a speeding ticket when they run a motor vehicle report. This usually happens every 6 to 12 months. Once they have this report, they update their records and your insurance policy. If your auto insurance policy has just been renewed, any impact the speeding ticket has will only happen on your next renewal.

In most states, the Department of Motor Vehicles (DMV) keeps track of your driving record. Any infractions, including speeding tickets, are maintained in your DMV driving record. Most states use a point system to keep track of the severity of your infractions. For example, in Nevada, speeding violations can range from one to five points on your driving record, depending on your speed. Many insurers consider drivers with higher points as high-risk and may set their rates accordingly.

However, it's important to note that not all speeding tickets will result in an increase in your insurance premiums. Some insurers may waive any increase, especially if it is your first speeding ticket or if you were only slightly over the speed limit. Additionally, taking a defensive driving course can help remove a ticket from your driving record and reduce your car insurance premiums.

The impact of a speeding ticket on your insurance rates can also vary depending on your state and the severity of the violation. For example, speeding in a school zone will result in a higher premium increase compared to speeding on a public highway.

Overall, while a speeding ticket may not always result in an immediate increase in your insurance rates, it is considered a moving violation that can impact your premiums for up to three years.

What are the implications of an out-of-state speeding ticket?

The implications of receiving an out-of-state speeding ticket can vary depending on the state where the violation occurred and the driver's home state. Here are some key points to consider:

Reporting and Record

Most states are parties to interstate agreements, such as the Driver's License Compact (DLC) and the Nonresident Violator Compact (NVC), which facilitate the sharing of information on out-of-state traffic violations. The DLC, to which all states except Georgia, Massachusetts, Michigan, Tennessee, and Wisconsin are signatories, requires states to report traffic violations that occur out of state to the driver's home state. The NVC, which includes all states except Alaska, California, Michigan, Montana, Oregon, Wisconsin, and Virginia (or in some sources, Wisconsin), allows member states to suspend the licenses of drivers who fail to pay out-of-state fines. Therefore, it is important to resolve an out-of-state speeding ticket with the state where the violation occurred to avoid further penalties, such as license suspension.

Points and Driving Record

The impact of an out-of-state speeding ticket on a driver's record can vary. In some states, such as New Jersey, violations from another state result in points on the driver's license, while in others, like Colorado or Pennsylvania, minor traffic violations are not recorded. In Maryland and Nevada, violations are recorded but points are not assessed for out-of-state infractions. The rules in the driver's home state typically apply, so if the home state assesses points for speeding, the licensing authority may add points to the driver's record.

Insurance Implications

The effect of an out-of-state speeding ticket on insurance premiums can depend on the driver's home state and the severity of the offense. In some states, such as Florida and Texas, insurance premiums may increase due to an out-of-state speeding ticket, while in others, like New York, there may be no penalty. Insurance companies consider the driver's risk profile when determining rates, and an out-of-state speeding ticket can impact their perception of the driver's risk level.

Contesting the Ticket

It is possible to contest an out-of-state speeding ticket, but it may be more challenging than doing so in the driver's home state. Depending on the state where the violation occurred, options may include travelling to the state to fight the ticket in person, submitting a written appeal, or hiring an attorney to represent the driver in court. Contesting a ticket can sometimes result in reduced or waived fines and prevent it from affecting the driver's record.

Resolving the Ticket

It is important to resolve an out-of-state speeding ticket by paying the fine by the due date to avoid more severe penalties. The fines are collected by the state where the violation occurred, and failure to pay can result in license suspension through agreements like the NVC. Paying the fine may result in points being added to the driver's license and potential increases in insurance premiums, depending on the specific circumstances.

Frequently asked questions