Why Does Auto Insurance Go Up After a Speeding Ticket?

By Gregory Hamel

  • Overview

    Auto insurance is one of the most expensive aspects of car ownership. Not only do premiums often cost more than $100 a month, but they are subject to increase at any time. Anything that gives the insurance company reason to believe you are a high risk, such as getting speeding tickets, will make your insurance payments go up.
  • Insurance Premiums are Based on Risk

    When an insurance company calculates how much a policy will cost, it assess the likelihood that the driver will get in an accident resulting in an insurance claim, as well as the value of the car being covered. The more likely the driver is suspected to get in a crash, the higher the cost of insurance. Common factors that tend to indicate a risky driver are when a driver is inexperienced (under 25), a male, unmarried, has a history of accidents or a history getting a speeding tickets.
  • Speeding Tickets Indicate Unsafe Driving

    Insurance companies don't have the time to get to know each individual driver and assess the safety of their driving. Oftentimes, those who are pulled over for speeding are good drivers, but in general, the faster one drives, the more likely they are to lose control of their vehicle and get in a costly accident. Speeding tickets are an indicator to an insurance company that the driver often exceeds the speed limit, so the company assumes that the driver is a greater risk and react by increasing insurance cost.

  • Ticket Allowance

    While getting speeding tickets will result in increasing insurance cost, some auto insurance plans allow for at least one speeding ticket before their premiums will increase. The reasoning is that everyone is subject to possibly getting pulled over once for speeding, even when they are attempting to follow the speed limit. Sometimes speed limits drop suddenly, and aren't well market. Police often set up speed traps in such areas to raise revenue for the local government. Therefore, a single ticket may not indicate risky driving, while multiple tickets usually indicates a person who habitually drives over the speed limit.
  • Exponential Premium Increases

    Even very safe drivers can get a speeding ticket. On the flip side, only very unsafe, excessive speeders are likely to get three or more speeding tickets in a short span of time. Many insurance policies include a small increase of premiums for one speeding ticket, but an increasingly large increase for subsequent speeding tickets. The reasoning for this is that anyone who gets more than two speeding tickets is probably speeding much of the time, and therefore is at high risk of getting in an accident.
  • Keeping Speeding Tickets off Your Record

    Oftentimes, a first speeding ticket can be kept off of a driver's official driving record if a fee is paid, and no other speeding tickets are incurred for a certain period of time. This allows normally safe, law-abiding drivers that are pulled over for the first time in many years to possibly avoid having their insurance premiums increase. Similarly, if a driver gets many speeding tickets at one point in their life, but hasn't received any for a very long time, they can often find auto insures who will not charge them high premiums for their past tickets.
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