The Long Shadow Of Violation: Understanding Auto Insurance Penalties

Traffic violations can have serious consequences for drivers, including fines, legal fees, and increased car insurance rates. The impact on insurance costs can be significant, with a single violation resulting in a rate increase of up to 82% or $1,200+ per year. The duration of these penalties varies, with speeding tickets typically remaining on a driver's record for at least three years, and more severe violations, such as DUIs, staying on record for ten years or more. Insurance companies also consider the severity of the violation when determining rate increases, with speeding 21-25 mph over the limit resulting in a higher penalty than speeding 6-10 mph over. The impact of violations on insurance rates also differs by state, with a speeding ticket resulting in a 13% increase in Pennsylvania and a 48% increase in North Carolina. Drivers with violations are considered higher-risk and are more likely to face insurance penalties as a result.

The impact of traffic violations on insurance rates

Traffic violations can have a significant impact on insurance rates, and the severity of the violation will determine the size of the penalty. A single traffic ticket can raise insurance costs by as much as 82%, with the most expensive violations being hit-and-run, refusal of a breathalyser test, and driving under the influence (DUI). These serious violations can also lead to policy cancellation or non-renewal.

The impact of a traffic violation on insurance rates depends on several factors, including the type of violation, the driver's age, and the state in which they live. For example, a speeding ticket for driving 6-10 mph over the limit can increase insurance rates by 20%, while speeding 21-25 mph over the limit can raise rates by almost 26%. The location of the violation also matters; a speeding ticket in Pennsylvania may lead to a 13% increase in insurance rates, while the same offence in North Carolina could result in a 48% hike.

Minor traffic violations, such as failing to observe a sign or signal, can also impact insurance rates. For a 30-year-old driver with a $1,000 annual insurance rate, a failure-to-observe violation would increase their rate to $1,280, while a speeding violation would increase it to $1,310. Reckless driving, a major violation, would result in a much higher increase, taking the annual rate to $1,770.

Age is another factor that influences the impact of traffic violations on insurance rates. Older drivers tend to be penalised more heavily than younger ones. For example, a 74-year-old driver may see their insurance rates increase by 1.81 times after a reckless driving ticket, while an 18-year-old driver's rates would rise by 34 cents per dollar.

The length of time that a traffic violation affects insurance rates varies. Typically, insurers consider violations on a driver's record for three years, but more severe violations, such as a DUI, can impact rates for up to 10 years. During this period, drivers may not be eligible for "good driver" discounts, which can lower insurance rates.

Overall, traffic violations can have a significant financial impact, with the potential to cost hundreds of dollars in additional insurance costs. The best way to avoid these extra costs is to maintain a clean driving record and a good credit score.

How long do violations stay on your record?

The length of time a violation stays on your record depends on the type of violation, the state in which the violation occurred, and the insurance company. Minor infractions, such as speeding tickets or running a stop sign, typically remain on your record for around three years. However, the duration can vary by state. For instance, in California, speeding tickets are removed from records after 39 months, whereas in Virginia, they remain for five years. Some states, such as Texas, keep records of speeding violations indefinitely.

More serious violations, such as driving under the influence (DUI) or reckless driving, tend to stay on your record for much longer. A DUI conviction in California, for example, will remain on your record for ten years, whereas in Florida, it will be listed for 75 years.

When it comes to car insurance, accidents generally affect your rates for three to five years before they are removed from your record. However, even if an accident stays on your record for longer than five years, your insurance rates may not remain high for the entire duration.

Moving vs non-moving violations

Moving violations and non-moving violations are the two main types of traffic violations. The type of violation you commit will determine the punishment you receive.

Moving Violations

Moving violations occur when a driver breaks a traffic law while their vehicle is in motion. These violations are generally considered more serious than non-moving violations, as they can include offences such as distracted driving or driving under the influence of drugs or alcohol. Some common examples of moving violations include:

• Speeding
• Failure to use turn signals
• Running a red light
• Driving with broken headlights
• Improper lane change
• Failure to obey a road sign
• Using an electronic device while driving

Moving violations can have serious consequences, including fines, jail time, license suspension, and increased insurance rates. These violations can stay on your record for a long time and may impact your ability to drive.

Non-Moving Violations

Non-moving violations occur when a vehicle is not in motion and breaks a traffic code. These violations are usually related to parking issues or defective vehicle equipment. Some common examples of non-moving violations include:

• Parking in a no-parking zone
• Parking in front of a fire hydrant
• Displaying expired registration or insurance
• Lack of registration or insurance
• Broken taillight
• Vehicle maintenance issues

Non-moving violations typically result in a ticket and a fine. These violations usually do not impact your insurance rates or result in jail time. However, they can still appear on your driving record and may affect your license if you accumulate too many points.

Insurance rate increases by speeding ticket severity

The impact of a speeding ticket on insurance rates depends on several factors, including the driver's location, their driving history, and the severity of the violation.

Severity of the violation

The greater the speed exceeded the limit by, the more the insurance rate is likely to increase. For example, getting caught speeding 6-10 mph over the limit increases insurance rates by about 20%, while speeding 21-25 mph over the limit raises rates by almost 26%.

Location

The average rate increase for drivers with speeding tickets varies from state to state. For instance, in Hawaii, drivers get the lowest average rate increase of 9%, while in Michigan, drivers face the highest average rate increase of 49%.

Driving history

The number of speeding tickets and other traffic violations on a driver's record also affects insurance rates. Insurance companies generally consider people with multiple speeding tickets as high-risk drivers and may decide not to renew their policy or even cancel it.

Insurance provider

Different insurance providers may also charge different rates for drivers with speeding tickets. For example, Progressive customers with a speeding ticket paid 15% more for a six-month policy, while other insurers may not increase rates at all for a single ticket.

How to save on car insurance after a violation

A single traffic violation can increase your auto insurance costs by an average of 35%. Minor infractions can also have an impact, with a speeding ticket costing you an extra $422 annually. More serious violations, like a DUI, will cost you even more, with an extra $723 in annual insurance costs.

Shop around for car insurance

Get several quotes from different insurance companies and types of insurance companies. The cheapest insurance isn't always the best, but prices do differ from company to company, so it's worth comparing.

Increase your deductible

By choosing a higher deductible on your car insurance, you can significantly lower your premium costs. Just be sure you have enough money set aside to pay the higher deductible if you need to make a claim.

Take a defensive driving course

Some insurance companies offer discounts to those who take a safe or defensive driving course. These courses can be repeated every few years to keep the discount active.

Review your current policy

If you've had the same policy for several years, it might be time to review and see if your coverage needs have changed. For example, if your vehicle is older, you may be able to lower your limits associated with vehicle repair, such as comprehensive and collision coverage.

Bundle your policies

Combining your home and auto policies with one insurance carrier is an easy way to lower your insurance rate. You'll also save time by only having one account to manage.

Improve your credit score

In some states, a credit check may be part of your risk assessment by insurance companies. People with higher credit scores tend to get lower insurance rates because it indicates that they make responsible decisions.

Take advantage of low mileage discounts

If you work from home or have a short commute, you may qualify for low mileage discounts. Some companies offer discounts to motorists who drive less than 10,000 miles per year.

Seek out other discounts

There are often other discounts that your insurer may offer. For example, some companies offer discounts to those who have not had any moving violations during a specified period or who have taken a defensive driving course.

Frequently asked questions