We have all had a day where you are late for one reason or another so you decide to speed up just a bit. Then out of nowhere you hear a siren and see flashing lights. You are upset after being issued a speeding ticket as you could have avoided it by not speeding. Then your second thought, how will this speeding ticket affect my auto insurance?
Why Speeding Tickets Affect Your Auto Insurance Rates?
Auto insurance companies base your insurance rates on several factors. These factors include your age, make and model of your car, annual mileage, your address, and driving record. Auto insurance companies will look into your driving record when setting a rate. Speeding tickets are red flags for insurers as they increase your risk of being involved in an accident. Insuring you will more than likely cost an auto insurance company more money, therefore your premium will be high.
The Impact of Speeding Tickets on Your Auto Insurance
Changes to premiums for speeding tickets or moving violations vary among auto insurance companies. While one company may raise your rates for three to five years another may apply only a surcharge fee to your policy. The following are ways a speeding ticket will affect you auto insurance:
- Increase in Rates. As insurance companies check your driving record for traffic violations, speeding tickets will increase the amount you will pay
- Loss of discounts. Your chance of receiving discounts is reduced with multiple speeding tickets or traffic violations. For example, an experienced driver may pay less but if you have a poor driving record that will reduce your chance.
- Loss of standard coverage. Private insurance companies can refuse to insure you because of too many speeding tickets or traffic violations. You may need to purchase an assigned risk plan, run by your state, helps high-risk drivers meet state’s insurance requirements.
What Can You Do To Reduce Your Premium After A Speeding Ticket?
If you received a speeding ticket, the following information may help you reduce the cost of your auto insurance:
- Drive carefully and responsibly. Make sure to focus on safe driving as that alone will lower your premium even after receiving a speeding ticket.
- A change in coverage. If your premium in fact increased, you may be able to lower your costs by changing coverage. For example, if you currently have full coverage on your vehicle you can change it to liability coverage. But keep in mind doing so will not repair your car in case of an accident where you are at fault.
- Take defensive driving. Check with your insurance company if a state-approved defensive driving course can reduce your premium.
Do not forget one way to take advantage of low, affordable premiums is to drive carefully. Contact us with any questions you may have after receiving a speeding ticket or a free quote.