How a ticket impacts your insurance
Clients are always asking us the question “How does a ticket impact my insurance?” If you get a speeding ticket, that violation can stay on your driving record for three years or even longer. And because your driving history plays a large part in determining how much you’ll pay for insurance, the fewer tickets you have, the better.
Different carriers have different policies when it comes to checking your driving record and how a ticket impacts your insurance premiums. If you receive a ticket, and it’s your first in several years, you may not see much of an increase — depending on the severity of the offense. In fact, many states will allow you to enter a deferment program if it’s your first ticket, keeping the violation off your record if you complete a safety course and avoid further tickets.
A lot of our carriers offer an endorsement called minor violation forgiveness. Typically, this means that you get one violation forgiven every three years, meaning that you will not see an impact on your rate.
But that second ticket (or third, or fourth …) can bring some serious financial penalties. While there are too many variables to say specifically how much each additional violation will increase your premium, it’s safe to say that the jump will be significant. And unfortunately, you can be stuck paying those higher auto insurance premiums for years.
Significant violations can have a bigger impact as well. If you’re going 20 miles per hour over the limit, you’ll likely pay more than someone with a ticket for 5 mph over. Insurance companies know that speeding increases the risk of accidents, and they’ll view you as an increased risk — for good reason. In fact, if you have a serious violation, or too many tickets, your insurance carrier could drop your coverage altogether.
For younger drivers (typically under the age of 25), it’s especially important to avoid tickets, because companies already view these drivers as riskier than the general population.
If your premium doesn’t go up, having a violation on your record could prevent you from receiving the lowest possible rate on your insurance.
Of course, we think the best policy is simply to obey speed limits. Not only will you avoid tickets and possible insurance hassles, but your risk of accidents will decrease, tickets will not impact your insurance. And you’ll get better gas mileage. Sounds like a good deal to us!