How Does a Speeding Ticket Affect Your Insurance Premiums?

Written by james mcmillian
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How Does a Speeding Ticket Affect Your Insurance Premiums?
Speeding tickets can cause your insurance rates to go up. (speed limit image by bilderbox from Fotolia.com)

There are many factors that go into your auto insurance rates. One large factor is your driving history. Speeding tickets can cause your insurance premiums to increase, or for your policy to be cancelled by your auto insurance company. Every insurance company has a different underwriting system and rules for how much to rate for tickets. Your insurance agent or company can offer additional insight into how it rates for speeding tickets.

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First Ticket

The first speeding ticket is generally not weighted highly by insurance companies. If you are younger than 18 or 21 it might be, but most adults will not be charged much more, if anything, for the first offence.

Multiple Tickets

Insurance companies begin to charge higher premiums, and they might cancel your insurance, if you have multiple tickets in a three-year period. Also, if there are several people in the household who get one or more tickets, that can cause your premiums to go up.

High Point Violations

A high point ticket, even if it is your first one, is generally looked down upon, and highly weighted and scrutinised by insurance companies. High point tickets are for driving 20 miles per hour over the speed limit, careless or imprudent driving, and driving under the influence.

Tickets and Accidents

If you have had an accident and you later get a speeding ticket, the ticket might have a larger impact on your rates. This is because you have displayed a trend of unsafe driving, and the insurance company believes you are more likely to get in another accident. Also, your premium might increase if you are issued a ticket in conjunction with an accident.

Assigned Risk and SR-22 Coverage

If your policy is cancelled by your auto insurance company because of excessive tickets, you might have to get insurance through an assigned-risk pool. This is for drivers who can't obtain insurance elsewhere. The assigned risk pool is only for high-risk drivers, so it is more expensive than standard insurance policies.

Also, if your license is suspended because of tickets and you want it reinstated, you might be required to carry SR-22 insurance, which is basically a form that your insurance company sends the department of motor vehicles as proof that you have insurance. Insurance companies generally charge more for SR-22s.

If you get too many tickets, insurance companies view you as a high-risk client and charge you more in anticipation that you might cause an accident.

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