Understanding Auto Insurance After Speeding Tickets
The average US driver has a 16% chance of getting a speeding ticket, with that number rising to 48% over the next three years. While it’s rare that people intentionally drive over the speed limit, sometimes things happen. Staying safe on the road is becoming increasingly important and that is why people are becoming more interested in understanding not only how to stay safe, but just how speeding tickets affect their auto insurance.
How Speeding Tickets Affect Your Insurance
When shopping around for car insurance, you will likely find that many factors affect the price you are quoted. This is because, when insurance companies determine your premiums, one of the biggest factors they look at is your history of traffic tickets, among other things such as age and overall driving record. The DMV notes that when you have a driving record that shows more speeding tickets, your insurance company is likely to view you as a higher risk and more inclined to get into an accident. Because this risk will cost them more money, they raise your premiums and you end up paying more for a simple mistake such as speeding. It is important to note here that receiving a speeding ticket for driving 15 miles above the posted speed limit can increase your car insurance rates more than being ticketed for going only 5 miles above the speed limit.
Getting a Good Deal on Auto Insurance
If you are concerned about how speeding tickets affect your auto insurance, the first action you should take is to ensure that you are always paying attention to posted speed limits and monitoring your speed. If you get stopped, it is important to never admit guilt. If you admit guilt, you won’t be able to contest the ticket at a later date and it can go on your record and affect your premiums. Sign the ticket politely and decide whether or not you want to contest the ticket after speaking with your auto insurance company about how it would affect your insurance rates. In some cases, you can have a traffic ticket erased from your record so it won’t affect your auto insurance rates, and this might require attending classes or driving school, but is well worth it if it means keeping your insurance premiums low.
Comparing Auto Insurance After a Speeding Ticket
If you can’t prove your innocence in court and end up getting fined for speeding, you will likely have to deal with the consequences regarding your auto insurance. However, this outcome might depend on where you live. NerdWallet, for example, compared auto insurance rates in two states and discovered that when it comes to a speeding ticket, insurance companies vary. In this case, it will be important to shop around at various different insurance providers to see how they will view and handle your speeding ticket. State Farm levies a small percentage increase after the first ticket and ignores the others. Farmers and USAA both impose double-digit increases after each ticket.
Staying Safe on the Road
While nobody wants to see their insurance premiums go up, it is one way in which insurance companies and local governments ensure that all drivers are staying safe on the road. When driving, check your speedometer regularly, know the limits and take note of situations that make you speed. Always obey local laws and you’ll find that you won’t be at risk of speeding and can enjoy low auto insurance premiums for much longer.