35 speed limit sign on highway

How Does a Speeding Ticket Affect My Car Insurance?

Getting pulled over after speeding can lead to the instant stress and worry of, “What is this going to cost me?” The obvious answer will come in the form of a speeding ticket.

An added cost that sneaks up on people, though, is the increase in your insurance afterward. After being convicted of a speeding ticket, your car insurance rates will likely be on the rise. The amount your insurance raises can vary based on many factors such as location, driving history, and other elements.

Why Speeding Tickets Affect Your Insurance

Insurance companies base their premiums mainly on the degree of risk they take while issuing a policy. To insurance companies, the risk is the likelihood that they will pay a claim on your policy at some point. When you get a speeding ticket or into other trouble, the insurance company feels that the likelihood they will have to pay on your claim increases. This escalation in risk means a higher premium for you to pay on your car insurance.

Factors That Determine Your Insurance Premium

When deciding what your insurance premium will be, insurance companies consider a few factors. Some of these components include:

  • Your driving records
  • How many offenses you have had
  • Length of time from last violation
  • How much you were speeding
  • The location

How a Speeding Ticket Changes Your Insurance

Even if you have not taken out an insurance claim, your company likely sees your policy as a risk. This increase in risk will likely increase your rates. These insurance rates will vary based on the insurer alongside the previously mentioned factors. The state of the offense affects the insurance rate increase that you will observe after a speeding ticket. According to a report done by Forbes, your rate can increase by as little as 11.20% in Alaska or as much as 53.80% in Michigan. Your insurance provider will vary in rate increases, too, with some increasing your claim less than 10% and others raising it by almost 40%. Doing your due diligence while researching insurance companies before purchasing will only benefit you in situations like traffic violation.

Additionally, your incident may result in less cost reductions over time and a standard coverage. Insurance companies often reward good driving behavior with a cost reduction on your insurance. However, the more violations you have, your provider may reduce or eliminate any benefit or reduction you may have otherwise received. If you have enough issues, you may lose or find it tough to find coverage.

How Long a Ticket Influences Your Insurance Rates

Most moving violations, such as speeding tickets, are considered “surchargeable” incidents. These incidents include any traffic or violation that leads to an increase in your insurance premium. A speeding ticket will likely stay on your record for three to five years. Some insurers will decrease the charge every year that you drive violation-free.

How To Lower Your Insurance After a Speeding Ticket

If your speeding ticket does lead to a surcharge, there are a few things to try to lower your auto insurance cost.

If your driving history is scot-free of violations, you may be able to take a state-approved driving test to improve your driving record and reduce your rates. Additionally, you may be eligible for a discount. By bundling or paying your premium in full, your car insurance company may lower your rates. However, if worse comes to worst, shopping around for a new insurance company may be the route to take.

If you are looking for a new Auto Insurance agency, contact Hosto Financial and Insurance Services. Hosto Financial Insurance provides years of experience and knowledge to ensure the best protection for you.

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