How a Speeding Ticket Affects Your Insurance

Recent surveys and studies show that Americans are driving faster than ever before, despite the fact that speed limits have been increasing over the last 25 years. Other studies show that car insurance rates are higher than they’ve ever been as well - coincidence? Highly doubtful. As we continue to drive faster, accident rates increase, injuries pile up, and major repairs become more frequent. One of the ways insurance companies are looking to punish drivers that break the speed limit is by increasing their premiums. All it takes is just one speeding ticket and your insurance premiums could jump over 25%. After finding out about a speeding ticket, many insurers will add a surcharge to your policy for the next several years. The surcharge eventually fades away if you maintain a good driving record, but it could easily cost you hundreds of dollars extra over the course of a couple years. Here are some other factors that could impact your insurance rates if you get caught speeding:

Other Factors

• You already know speeding can increase your insurance premiums, but did you know your rates could climb even higher if you’re hit with an extreme or criminal speeding ticket? Extreme or criminal speeding is typically defined as going 15mph over any speed limit or exceeding 90mph anywhere on the road. These tickets are considered reckless driving can have damaging affects on your wallet, as your insurance premiums could nearly double, even for first time offenders.
• Your overall driving record could also affect your insurance rates if you receive a speeding ticket. If you have a relatively clean record, your insurance provider may be willing to overlook a single speeding ticket, but you could see an even bigger increase if this is your third offense. Multiple offenders could even risk being dropped from their insurance policy completely. You may also catch a break and see no premium increase if you’ve maintained your policy with the same company for a long period of time.
• Finally, your location could also play a part in determining whether or not your rates increase from a speeding ticket. Car insurance is regulated by individual states and they each have their own laws and procedures in the matter. For instance, receiving a speeding ticket in one state may draw a 15% rate hike, while another state may not allow any rate increases for first time offenders.