Do speeding tickets affect insurance rates?

In many cases, speeding tickets can impact car insurance rates. Insurers generally review any applicant’s driving record, and a history of speeding violations is one element insurance companies may use to assess risk. While speeding tickets can certainly cause your premium to rise, that might not always be the case.

Besides potentially raising your car insurance rates, a speeding ticket may affect your car insurance in other ways.

Less cost reduction over time

Getting multiple tickets or traffic violations may cause you to miss out on cost reductions on your insurance. In general, the Insurance Information Institute (III) explains, more experienced drivers are likely to pay less for auto insurance. However, speeding tickets and a poor driving record might reduce or even eliminate those benefits you might receive from more driving experience.

Loss of standard coverage

If your record of accidents and traffic violations is serious enough, you may not be able to find a private insurance company that will offer you auto insurance coverage at all, says the III. If traditional insurance companies will not offer you coverage due to traffic tickets or other violations, you may need to get insurance through a state-run risk plan.

If this applies to you, you’ll need to check with your state's department of insurance to learn whether a risk plan (sometimes called an assigned risk plan) is available where you live.

A first-time speeding ticket can certainly cause your car insurance rate to increase, but it’s not a guarantee. Some insurers may not raise premiums after a single speeding ticket if the driver is over the age of 25 and has not had a similar violation in the last three years.

Experian notes that if your insurer does decide to raise your rate, the average increase is roughly $582 per year. However, it’s worth noting that any rate increase likely wouldn’t happen until policy renewal and the amount can vary depending on your insurer and location. Additionally, there might be ways to keep the ticket off your record and/or avoid a rate increase entirely.

Even if your rates don’t rise after one ticket, you’re more likely to see an increase if you receive multiple tickets in a short span of time, explains Experian, and the amount can depend on the number of tickets on your driving record. For example, someone with three or more violations pays an average of 54% more for coverage each year than a driver with a clean record, according to Experian data. Remember, insurers are evaluating risk when they price policies, and insuring a driver with multiple moving violations could be seen as a higher risk.

Other factors that could be considered

The amount that your auto insurance could increase after a speeding ticket varies between insurance companies. Some additional factors that could be taken into consideration include:

• Your prior driving record.
• Amount of time since your last moving violation.
• How many miles per hour you were going over the speed limit.
• Location where the violation occurred.

If you have received a speeding ticket, there may be things you can do to help lower the cost of auto insurance.

1. Focus on safe driving.
   Above all - drive carefully. According to the III, the better your driving record is, the lower your premium may be. Even if you've had one speeding ticket, avoiding more may help keep your car insurance costs lower. Additionally, speeding tickets don’t stay on your record forever. So, if you drive safely for a few years, previous violations should fall off your record.
2. Re-evaluate your coverages.
   If your car insurance premiums have increased, you may be able to reduce those costs by changing your coverage. Whether this option is right for you will depend on your personal insurance needs. Your insurance provider can provide more information to help you make a decision about your insurance coverage.
3. Take a safe driving course.
   In some states, you may also be able to reduce your premium by taking a defensive driving or accident prevention class. For example, in New York, insurers must give a discount on auto insurance to drivers who have completed a state-approved accident prevention course, according to the New York State Department of Financial Services. Some states, like Illinois, may also allow drivers to enroll in a safe driving program after receiving a ticket to prevent the violation from going on their record in the first place, according to DefensiveDriving.org.