Traffic Tickets: How They Impact Your Insurance Rates

Getting a ticket can have a significant impact on your insurance rates, with the potential for increases of several hundred dollars per year, depending on the type of violation and your state. Speeding tickets, for example, can remain on your driving record for up to five years and cause your insurance rates to rise by an average of $208 over three years. The impact of a ticket on your insurance also depends on the number of points on your license, with more points generally leading to higher rates. While non-moving violations, such as parking tickets, typically don't affect insurance rates, they can if left unpaid.

Speeding tickets

In general, a speeding ticket will likely result in a rate increase, especially if you have multiple tickets within a short period. For example, the average premium increase after a speeding ticket was $1,380 over three years. However, if you have a clean driving record and your first speeding ticket is for a minor infraction (less than 10 miles per hour over the speed limit), your rates may not rise at all.

The duration of the rate increase also varies. Typically, a speeding violation will impact your rates for at least three years, and in some cases, it may remain on your record for up to five years or even permanently, depending on your state. During this time, you can expect to pay a higher premium, with the amount varying depending on your insurer and the severity of the ticket. For example, speeding in a school zone will increase your premium by an average of $342 in the first year, while speeding by 6 to 10 miles per hour could result in a $320 increase in the first year.

It's important to note that not all states weigh speeding tickets equally. Some states may add points to your license for speeding violations, which can lead to license suspension if accumulated. Additionally, some states may require you to attend traffic school or defensive driving courses to reduce the impact on your insurance rates.

To mitigate the impact of a speeding ticket, you can consider contesting the ticket by gathering evidence, such as dashcam footage or witness statements, or hiring a lawyer specializing in traffic offenses. Additionally, shopping around for insurance quotes after receiving a ticket can help you find a better rate, as different insurers may place varying weights on moving violations.

Moving violations

A moving violation indicates that a driver has been driving unsafely, increasing the likelihood of an accident. As a result, a driver's insurance company will increase their auto insurance premium. Moving violations are considered a more serious offence because they can lead to accidents, endangering both the driver and others on the road.

The degree to which a moving violation affects insurance rates depends on the severity of the offence. The most serious offences, like driving under the influence (DUI), can substantially spike insurance rates and potentially lead to policy cancellation. Drivers charged with a DUI in California, for example, will see their insurance rates impacted for 10 years. A hit-and-run violation can also result in a car insurance rate increase of 95% or $2,000+ more per year. Minor violations may also raise premiums by a few cents for every dollar. For example, speeding between 6-10 mph over the speed limit will raise insurance rates by an average of $40 a month, while speeding 21-25 mph over the limit will increase rates by an average of $54 a month. Generally, rates may not increase after the first ticket, but they are likely to rise with two or more tickets within three years.

Other moving violations that can increase insurance rates include running a red light, illegal turns, failure to signal, and stop sign violations. In many states, using a cell phone while driving is also a moving violation that can lead to higher insurance rates. Reckless driving is considered a severe violation and can lead to hefty premium increases and even policy cancellation.

Non-moving violations

While non-moving violations typically do not affect insurance rates, they can still reflect on your driving habits, and multiple offenses could be viewed unfavourably by insurers. Additionally, if non-moving violations are linked to more serious issues, such as driving an uninsured vehicle, the impact on your insurance could be significant. Therefore, it is advisable to address and pay any non-moving violation tickets promptly to avoid potential repercussions.

The impact of non-moving violations on insurance rates can also vary depending on the insurance company's policies and the specific violation. Some insurance companies may consider multiple non-moving violations as a sign of risky behaviour and adjust their rates accordingly. Thus, it is essential to understand the policies and rating plans of different insurance carriers to anticipate how they treat non-moving violations when calculating premiums.

In summary, while non-moving violations do not usually affect insurance rates, they can still have indirect consequences on your driving record and insurance status. It is important to address and pay attention to these violations promptly to avoid any potential negative impact on your insurance or driving privileges.

Out-of-state tickets

If you get a traffic ticket in another state, it will likely show up on your driving record and may increase your insurance rates. The state where you received the ticket will report it to your home state, and it will likely appear on your record. This is due to the Driver License Compact (DLC), which 45 states plus the District of Columbia are signed up to.

The effect of an out-of-state ticket on your insurance depends on the severity of the violation and the policies of your insurance company and state. Some states forbid insurance companies from raising rates after a single moving violation, so an out-of-state ticket may not affect your premium. In other states, your insurance company may increase your premium after one violation or remove your good driver discount. The type of violation is also important—a minor violation is less likely to result in a rate increase than a major one. Some states, like Colorado and Pennsylvania, do not record minor violations like speeding tickets, so these are unlikely to affect your insurance premium. However, states like Florida and Texas record violations and assign points, so an out-of-state ticket will likely increase your premium.

Insurers typically consider violations on your record for three years after the infraction, though they may impact your rates for longer. Insurance companies also differ in how they treat violations—while most increase rates for drivers with violations, some may charge you less. Your insurance rate may not go up immediately after a speeding ticket—you may not see an increase until your policy is up for renewal, as insurers often review your Motor Vehicle Record (MVR) at this time.

If you receive an out-of-state ticket, it is best to pay the fine. Failing to do so can lead to problems, including a suspended license or even an arrest warrant. You can also check if the state where you received the ticket offers traffic school or a point reduction program, which may help counteract insurance increases.

Driving record

A driver's record is a history of their driving behaviour. It includes details of any traffic violations, accidents, or citations. This record is used by insurers to determine insurance rates and by motor vehicle agencies to assign demerit points.

In the US, each state maintains its own records, and the length of time that violations remain on a driving record varies. For example, in California, points stay on a driver's record for 36 months or longer, while in North Carolina, speeding tickets remain on a driving record for three years from the conviction date.

The impact of a ticket on a driver's record, and consequently their insurance rates, depends on several factors, including the type of violation, the state, and the insurer. For example, in some states, insurers are banned from using red-light camera tickets or texting tickets when determining insurance rates, while in others, these violations may result in higher rates.

In general, more serious violations, such as DUIs or hit-and-run incidents, result in significant insurance rate increases, with some insurers even cancelling policies upon renewal. Less severe violations, such as speeding tickets, can still result in notable rate increases, especially for multiple offences. For example, in North Carolina, a first speeding ticket can increase insurance rates by around 46-49%. In New York, a single speeding ticket can increase rates by 6-7%.

To mitigate the impact of a ticket on a driver's record and insurance rates, drivers can consider taking a driving safety course, which may prevent the violation from appearing on their record and help maintain lower insurance rates. Additionally, drivers can shop around for insurance providers, as rates may vary significantly between companies.

Frequently asked questions