Do Speeding Tickets Affect Insurance?

Speeding tickets are a common occurrence on the roads. They can be costly, both in terms of the fine you have to pay and the impact they could have on your insurance premiums. But do speeding tickets actually affect your insurance? Let’s take a closer look.

How Insurance Companies View Speeding Tickets

When you get a speeding ticket, it’s an indication that you’ve broken the law and are not adhering to the rules of the road. Insurance companies view this as an increased risk for accidents and therefore a greater likelihood that a driver with a speeding ticket will file a claim. As a result, insurance companies usually raise premiums for those with speeding tickets.

According to the National Association of Insurance Commissioners (NAIC), speeding tickets are considered a moving violation. This means that they go on your driving record and can have an impact on your insurance rates.

For example, if you have a perfect driving record with no violations or accidents, you’ll generally enjoy lower insurance rates than someone with a record of speeding tickets and other violations. The more tickets you have, the higher your rates will be.

How Much Will a Speeding Ticket Raise My Rates?

The exact amount that your rates will be raised will depend on a variety of factors, such as the severity of the speeding violation, your driving record, and your insurance company’s policies. Generally, if you receive a basic speeding ticket, you can expect your rates to go up by around 20%.

If you have a good driving record, that percentage increase may be lower, but if you have a history of speeding tickets or other violations, your rates could go up even more. It’s important to note that some insurance companies may be more forgiving than others when it comes to speeding tickets, so shopping around for insurance is always a good idea if you have a history of violations.

Will My Insurance Company Find Out About My Speeding Ticket?

Yes. If you have a speeding ticket, it will go on your driving record, which is a public document that your insurance company can access. In fact, insurance companies will typically check your driving record when it’s time to renew your policy or when you’re applying for a new one.

It’s worth noting that some states have laws that allow drivers to attend traffic school or take other measures to have their speeding tickets removed from their driving record. In these cases, insurance companies may not be able to find out about the ticket.

How Long Will a Speeding Ticket Affect My Insurance Rates?

The length of time that a speeding ticket will affect your rates will depend on your insurance company’s policies and the severity of the ticket. Generally, a speeding ticket will stay on your driving record for around three years, meaning that your rates may be higher for that period of time.

After three years, your rates should go back down if you have a good driving record with no other violations. However, if you continue to receive speeding tickets or other moving violations, your rates could remain high or even increase.

Do I Need to Report a Speeding Ticket to My Insurance Company?

Yes. When you receive a speeding ticket, it’s important to report it to your insurance company as soon as possible. Failing to do so could result in your policy being cancelled or not renewed.

It’s also important to be honest with your insurance company – don’t try to hide a speeding ticket or any other violations from them. Insurance companies have access to your driving record, so they will find out eventually, and not reporting a ticket could be considered insurance fraud.

FAQs

Overall, speeding tickets can have a significant impact on your insurance rates. It’s important to drive safely and obey the rules of the road to avoid getting tickets in the first place. If you do receive a speeding ticket, be sure to report it to your insurance company and take steps to improve your driving record, such as attending traffic school or taking defensive driving courses.