How a Speeding Ticket May Affect Your Insurance Premium

So, you have a lead foot? Exceeding the speed limit could cost you more than the price of a speeding ticket – your insurance premium may be altered, too.
How a Speeding Ticket May Affect Your Insurance Premium

The holiday season is quickly approaching – don’t let a speeding ticket be your stocking stuffer this year! Before you put the pedal to the metal you may want to think about how much a speeding ticket may actually cost you. Your insurance company could raise your premiums to accommodate for the likelihood that you will be involved in a car accident. Avoiding a speeding ticket could help you save money on your insurance premium.

How Much Will My Premium Increase

This is a question that is not easily answered with a ball park figure. Each auto insurance company varies on how they view a traffic violation, so there is no set of rules. For example, if you have been with your insurance company for multiple years and you have no previous speeding tickets on your record, or at least in the past three years, you may not see your cost increase at all. On the other hand, if you are a new driver, new customer to the company, and you were caught going 30 MPH over the posted speed limit you could see you rates increase by as much as 25%.

Another factor they will take into consideration will be how fast you were going. If the posted speed limit was 35 miles per hour and the cop wrote you a ticket for 20 MPH over, you could get a reckless driving ticket which is the worst infraction in the insurance company’s mind. If you were clocked only going 5-10 MPH over, your insurance company could make you pay one small extra charge, or nothing at all.

Speeding Tickets from Another State

Many drivers believe that if they are pulled over in one state but resides in another, then your car insurance company won’t find out about it. While this would be nice for those long cross-country road trips you and your friends take every year, this is simply not true.

Insurance companies and the DMV all have access to one nationwide database that provides them with all the information to people who violated traffic laws through the United States. Each police officer who issues a ticket or a citation is required to report this information to the database, and therefore, your insurance company will be informed. If you don’t take care of the ticket in a timely manner – either by paying it or disputing it – you could have your license suspended by your home state’s DMV.

Avoiding Higher Car Insurance Premiums

If you are afraid that your auto insurance rates are going to increase drastically because of a recent speeding ticket, you are advised to not admit guilt. If you do admit guilt to the violation you will not be able to fight it in court at a later date. Keep in mind, you are required by the law to sign each traffic ticket issued to you, but this is not admitting guilt. You only admit guilt to a speeding incident when you pay the fine.

When a ticket is issued you are given 10-14 days to from the date it was issued to you, to make a decision about what you are going to do. If you wish to contest the violating in a court of law you must call the courthouse in the city which you were issued the ticket and set up a court date. At this time you can make your case to the judge, or magistrate and the officer will make theirs.

In some cases, the officer could request to drop the ticket or the judge may dismiss it during a contesting. This is generally only done when you have a clean driving record for at least three years, and it was only a minor offense. If the ticket is not dismissed you must pay the fine at the time court commences. If you opt to enroll in a traffic school course like defensive driving class you could get a lesser fine, or have the ticket erased from your record.

As We See It

Keep in mind that car insurance companies base a customer’s premium on a number of factors including:

  • Your age
  • The vehicle you drive
  • Your credit score
  • Your driving record

You may experience an increase in your premium costs if you have bad credit scores, an older vehicle, or a bad driving record. To help yourself save some extra money be sure to pull your free credit score at least once a year, and be aware of what’s on your records.

It’s understood that everyone is in a hurry once in a while, but when you are on the road it can prove to be deadly to be in a rush. It’s important to remember that your vehicle is well over 3,000lbs of metal and if you crash into someone, or something, going 40 MPH you could seriously injure them or yourself. Practice safe driving tips by following the posted speed limit signs, and avoid getting a speeding ticket – it could save you more money than you’re aware of.

If you are being quoted higher than normal insurance rates because your vehicle is old and does not contain the latest safety features, it may be time to get a new one. At Auto Credit Express we have been helping bad credit car buyers get the financing they need to purchase a new or gently used car form a dealership in their home town that specializes in subprime financing. Get your new car today by filling out our online application.

Posted on October 29, 2013 by in Car Insurance
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