How Speeding Tickets Affect Insurance Rates

Auto insurance is a tricky business that people work to understand every day. There are a variety of different factors that impact your insurance rates. One of the most important factors is how you drive and if you’ve ever gotten a ticket, even a minor speeding ticket. 

And the fact is, whether it happens while you’re in your home state or out of state, speeding tickets will affect your insurance rates. Speeding tickets are considered part of your driving record, which insurance companies check and use to determine your risk of being involved in an accident or making an insurance claim. 

Being pulled over and ticketed for driving too fast gives the insurance company the perception that you are a high-risk driver. The higher the risk driver you are, the higher your cost of insurance will likely be. And if you’re trying to save money on car insurance, the last thing you want to do is receive a violation. 

Though it relies on many factors, your yearly premium prices will increase by nearly $300 on average when you receive a speeding ticket. The easiest way to avoid this is by driving safe at all times. 

Why do insurance rates go up after a ticket?

Whether it’s auto, life, home, or renters, insurance companies determine premiums mostly on the degree of risk they take to insure you. 

Previous behavior is the number one factor in determining the likelihood that the insurance company will have to pay out a claim under your policy, and insurance agencies call this risk assessment. 

After a ticket, your risk as a driver begins to raise, and in turn, increases your premium. For the most part, auto insurance bases risk on your driving history within the past few years. While speeding is the most common traffic violation in the country, it is also considered an indicator of being prone to an at-fault accident. 

To correctly add a higher risk to your insurance policy, your company will often charge you a higher monthly premium to compensate for that risk. And unfortunately, if you think switching companies will save you from an increase in rates, it won’t. 

If you get a quote from a new insurance provider, they will check your driving history at the purchase time. If a traffic violation turns up, your premium will be higher. 

A few things to keep in mind when wondering how much your premium will raise are:

Your prior driving record

Whether the ticket was the first offense

Amount of time since your last traffic violation

How many miles per hour you were going over the speed limit

The location where the violation occurred

In addition to high-risk prices, for a few years after one speeding violation, you will not be able to be covered by a basic auto insurance policy. You will always have the baggage of being a driver who may be dangerous on the roadways.

And thanks to modern technology, traffic violations have only increased. Traffic cameras, speeding radars, and many other advancements have led to more and more tickets. 

The Effect of Multiple Ticket Citations

On top of one ticket, receiving multiple speeding tickets within the same few years can dramatically affect your rates. 

Getting multiple tickets or traffic violations may cause you to miss out on cost reductions on your insurance. The Insurance Information Institute says experienced drivers are more likely to pay less for auto insurance. The longer you drive, the better off you are. However, even if you become a safer and more experienced driver over time, speeding tickets will eliminate that benefit. 

The more violations you have on your record, the worse it will be. That’s why people with accidents on their record will pay far more for insurance coverage. In some cases, you may be able to appeal your speeding ticket, and if you win, your insurance rates will probably remain the same.

How Different Companies Treat Traffic Violations

Insurance prices vary based on dozens of factors. From where you live and what kind of vehicle you drive to your driving record and insurance provider, each price will be different. And if you compare insurance quotes from company to company, you will be quoted a different price for nearly every situation. 

We all know the commercials that say State Farm has accident forgiveness or that Allstate won’t raise your rates after a ticket. However, most companies will raise your rates. The best way to ensure you’re receiving the lowest price is by shopping around and seeing which companies will give you the coverage you need. 

How to Reduce Premiums After a Speeding Ticket

If you have received a speeding ticket or two, there are ways to reduce your car insurance premiums back to where they once were. Make these tips part of the way you drive, and you’ll find you can lower insurance rates.

Drive Safely

First things first — you should always drive safely. The better your driving record is, the lower your premium will be. If you have received one violation, understand the consequences, and then make sure it never happens again. 

Take a Safe Driving Class

In many states throughout the country, a safe driving or accident prevention class could substantially reduce your premiums. Insurance agencies will see that you are trying to become a safer driver and give you the break you need on your premium costs. 

Change Your Insurance Provider

A speeding offense that causes your rates to skyrocket with one insurance company may have just a small impact on other companies. Some won’t raise your rates after a single minor violation, while others will.

Each insurance company has a different perspective of what should be the impact of a speeding ticket on your insurance premium. If the driver is over the age of 25, a speeding ticket won’t affect you quite as much. 

But as soon as you receive multiple citations, watch out. So, if you've received a ticket, focus on driving safely and avoid getting another moving violation. This will ensure that you get a lower rate no matter which insurance provider you switch to. 

When in Doubt, Drive Slower

A speeding ticket will undoubtedly affect the cost of your auto insurance rates. Insurance agencies will check your driving record over the past few years when determining your premiums, and if they discover that you are a high-risk driver, they will raise your rates immediately. 

The best way to avoid a rise in insurance premiums is by driving carefully and legally. Take your time wherever you go, and you’ll watch your rates drop year after year. 

Ethan Lichtenberg writes and researches for the car insurance comparison site, He specializes in travel and insurance and enjoys reading Poe in sunny Tarpon Springs, Florida.