How Will a Speeding Ticket Affect My Auto Insurance?

By Compuquotes Team on March 27th, 2008
Auto Insurance

One of the biggest concerns amongst drivers is how speeding tickets will affect their insurance. It is impossible to tell you exactly how a speeding ticket will affect your insurance, because each of the insurance companies and the different types of moving violations are all taken into account differently.

Chances are, your first speeding ticket or moving violation, such as running a red light, will not impact your insurance, or not by too much. Generally speaking, a speeding ticket only stays on your driver's record for three years.

Each of the different insurance companies have different practices when it comes to how they pro-rate your insurance premiums for speeding tickets and moving violations. If you've received speeding tickets in the past, some companies will raise your rates, while other companies will consider the severity of the violation when they raise your rates.

For example, some insurance companies who take violation severity into account will react more strongly to a speeding ticket that is more severe, such as 40 miles per hour over the posted limit, or running a red light. Higher level violations make for a higher likelihood of you needing to file a claim with the insurance company, and more severe a claim, such as totaling your car completely.

Some insurance companies will just raise your rates on a per violation basis, regardless of the severity of the violation.

It is important to note that when you apply for auto insurance, you should fully disclose your driving history to the company when and if they ask. The insurance companies all pull a driver's record on new clients, but they often will ask you before they do so if you have any speeding tickets, collisions or other moving violations. Lying about your driving record to an insurance company will only ensure that you will not get insurance with them--they will find your driving record and your insurance claim record, so it's best to be up front and honest with them when you apply for insurance. You wouldn't lie about your job or your finances if you were applying for a loan with a bank-the insurance companies go through a very similar process in determining if you are suitable for insurance and what your insurance premiums will be.

When you are discussing your driving history with a new insurance company, other than being honest about your violations, perhaps there was a reason why you were speeding that day. For example, you were on the way to the hospital to visit your dying mother. Some insurance companies will take this into account, while others won't. However, again you should be truthful about the reasons for your speeding ticket; the insurance company can and may check into your story to see if it is true and valid.

Speeding tickets most often will affect your insurance premiums once you have more than one, and the affect it can have on your insurance can be astronomical, to the tune of hundreds or thousands of dollars with some insurance companies.

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