Speeding Tickets: Auto Insurance Surge

Getting a speeding ticket can have a significant impact on your auto insurance rates. The increase in insurance rates depends on various factors, including your driving history, the severity of the speeding ticket, and your location. On average, car insurance rates go up by 24% to 43% after a single speeding ticket. The increase can be even higher for two or more speeding tickets.

For example, in California, the average auto insurance premium increase is about 36% after a speeding ticket. In New York, a single speeding ticket can increase insurance rates by 6% for minimum coverage and 7% for full coverage. In Florida, a speeding ticket can lead to an 18% increase in full coverage rates and a 21% increase in minimum coverage rates.

It's important to note that insurance companies may have different criteria for determining rate increases, and some companies may not increase rates after a single speeding ticket. Additionally, there are strategies you can use to mitigate the impact of a speeding ticket on your insurance rates, such as comparing quotes from different insurers, taking a safe driving course, or adjusting your insurance policy.

The cost of car insurance typically goes up about 25% after a speeding ticket

The increase in insurance costs after a speeding ticket is due to the fact that insurance companies consider drivers with speeding tickets to be high-risk. Speeding is one of the riskiest behaviours that drivers engage in regularly and is a top contributor to crashes in America. As a result, insurance companies view drivers with speeding tickets as more likely to file claims, and thus increase their insurance rates.

It's important to note that the increase in insurance costs may not take effect immediately. Insurance companies typically check a driver's record during the policy renewal process, so the increase in rates may not occur until the driver renews their policy. Additionally, the number of points added to a driver's license due to a speeding ticket can vary depending on the state and the severity of the violation. These points can affect a driver's insurance rates and can also lead to license suspension or revocation if the driver accumulates too many points within a specific period.

To mitigate the impact of a speeding ticket on insurance costs, drivers can compare quotes from multiple insurance companies, as rates can vary significantly. Drivers can also ask about discounts, raise their deductible, or adjust their insurance policy by dropping optional coverage. Taking a defensive driving or accident prevention course can also help reduce points on a driver's license and potentially lower insurance rates.

The number of points on your license does not determine a rate increase

While points on your license will inevitably cause your insurance premiums to increase, the number of points does not determine the rate increase. Instead, insurance companies are more interested in your driving history, including the number and type of violations. They conduct their own checks into each potential customer's driving history and weigh a variety of factors when determining rates.

For example, in California, disobeying a traffic control signal caused rates to increase by 20.2%, while speeding resulted in a 25.6% rate increase, despite each violation being worth one point on a license. Reckless driving in California, which is worth two points, saw insurance costs nearly triple (a 180% increase). In contrast, a driver with the same violation in Florida, worth four points, only saw their rates increase by 44.5%.

Insurance companies determine rate increases based on your driving history, including the number and type of violations, not on the number of points. Although a high number of points on a driver's license is indicative of a poor driving history, it is the nature of the violations rather than the assigned points that will increase your rates.

A single point on your record is not a big deal

The impact of a single point on your insurance rates depends on the state and the insurance company. On average, insurance rates can increase by 10% to 38% for one point, with the average cost of auto insurance with one point on your license being around $306 per month. However, some insurance companies may not increase your rates at all for a minor infraction. It's important to note that multiple points will significantly raise your rates.

The consequences of a single point also depend on your age. Younger drivers are considered higher-risk, so a single point on their record may result in higher surcharges on their insurance premium. On the other hand, if you're 50 or older, a single point may only lead to a slight increase of 5% to 10%.

Additionally, the type of violation that resulted in the point is a factor. For example, a minor speeding ticket that earned you one point is less concerning to insurers than a drug or alcohol offense, which also falls under the one-point category.

To reduce the impact of a single point on your record, consider taking accident prevention courses, driver safety courses, or other driver's education classes. These courses can help lower your insurance rates and improve your driving skills.

In summary, while any point on your driving record is not ideal, a single point is a minor issue. It's unlikely to result in significant consequences, and you have options to mitigate its impact on your insurance rates and driving privileges.

A speeding ticket in California can stay on your record for three to seven years

A speeding ticket can have a significant impact on your auto insurance rates, and in California, it can stay on your record for three to seven years. Here's what you need to know about the consequences of a speeding ticket in California:

Impact on Insurance Rates

The impact of a speeding ticket on your insurance rates can vary. On average, car insurance rates go up by 26% to 43% after a single speeding ticket. In California specifically, a speeding ticket can increase your insurance rates by 18.4%. If you receive multiple speeding tickets within a short period, you may be classified as a high-risk driver, leading to even higher rates.

Points on Your License

In California, a speeding ticket typically adds one point to your driver's license. However, if you are caught driving at extremely high speeds (over 100 mph), you could receive two points. These points can lead to license suspension or revocation if you accumulate too many in a short period.

Duration on Your Record

A speeding ticket in California will generally stay on your record for three years. However, more serious speeding violations, such as driving over 100 mph, can remain on your record for up to seven years. During this time, your insurance rates may be affected, and you may need to shop around for more affordable coverage.

Removing the Ticket from Your Record

While it is challenging to get a speeding ticket dismissed in California, it is not impossible. You can contest the ticket in court or request a trial by written declaration, especially if you have evidence or witnesses to support your case. Additionally, completing a state-approved driving or defensive driving course may help reduce the points on your record or prevent the ticket from impacting your insurance rates.

The average rate increase for a speeding ticket varies by state

The increase in insurance rates also depends on the insurance company. For example, State Farm had the smallest average rate hike after a speeding ticket, while Farmers had the biggest increase among large insurers. Additionally, some insurance companies don't increase rates at all after a single speeding ticket.

It's important to note that the increase in insurance rates due to a speeding ticket can last for three to four years, and you may also lose any safe-driver discounts you previously had.

To give a more specific example of how insurance rates can be affected by a speeding ticket, let's look at Michigan. In Michigan, the average cost of car insurance is already relatively high. After a speeding ticket, drivers can expect to pay an additional $124 per month for coverage.

If you're concerned about how a speeding ticket will affect your insurance rates, it's a good idea to compare quotes from multiple insurance companies. You may be able to find a cheaper policy, even with the increase from the speeding ticket.

Frequently asked questions