How Avoiding Speeding Tickets Can Affect Your Auto Insurance Policy

Speeding is one of the leading causes of traffic accidents and fatalities on the road. Getting caught speeding can not only lead to fines and points on your license, but it can also cause your auto insurance rates to skyrocket. However, driving safely and avoiding speeding tickets can have the opposite effect – keeping your insurance premiums low.

In this comprehensive guide, we’ll explore how avoiding speeding tickets can positively impact your car insurance policy, including:

How Speeding Tickets Affect Insurance Rates

• Insurance companies view speeding tickets as an indicator of high risk driving behavior. Drivers with speeding tickets are seen as more likely to get into an accident.

• A single speeding ticket can increase your insurance rates by an average of 20-30%, depending on your insurer, location and the severity of the offense.

• Multiple speeding tickets or excessive speeding offenses can cause increases of 50-100% or more. Some insurers may even drop your policy.

• Speeding tickets remain on your record for 3-5 years in most states, continuing to impact your rates during that time.

• Other high-risk driving violations like reckless driving and DUIs can increase rates even more significantly.

How Avoiding Tickets Keeps Rates Low

• Maintaining a clean driving record with no tickets or accidents is your best bet for low insurance rates. Drivers with clean records pay the lowest premiums.

• Many insurers offer “good driver discounts” for 3-5 years of violation and accident-free driving. Keeping your record clean qualifies you for the max discounts.

• Avoiding tickets keeps you in your insurer’s lowest risk tier. The higher your risk tier, the more you pay for insurance. Tickets move you into higher risk/higher cost tiers.

• Drivers with clean records for 6-10+ years often qualify as “preferred drivers” eligible for even lower premiums than standard policies. Tickets can disqualify you from this status.

• Long clean driving histories show insurers you are committed to safe driving habits. This gains their trust and confidence that you’ll continue being low risk.

Other Ways Responsible Driving Lowers Rates

Avoiding speeding tickets is just one aspect of responsible driving that helps keep insurance costs down. Here are some other ways to drive safely and maintain excellent auto insurance rates:

• Obey all traffic laws and signs: Follow speed limits, traffic signals, right-of-way rules, and all other road signs/rules. Violations like running red lights and stop signs will also raise your insurance costs.

• Practice defensive driving techniques: Be alert, anticipate hazards, and maintain safe following distances. Defensive driving helps prevent accidents even when other drivers are being careless.

• Limit distractions while driving: Don’t use your phone, eat, apply makeup or engage in other distracting activities while driving. Stay completely focused on the road.

• Avoid frequent claims: Too many claims for minor repairs or damages may signal high risk to insurers. Use your policy only when truly needed for major repairs or losses.

• Take a defensive driver course: Completing an approved defensive driving, traffic school or safe driver program can earn you a discount on insurance.

• Ask about usage-based “telematics” programs: These programs use a device in your car to monitor actual driving habits. Safe driving can earn you savings. Ask your insurer if they offer a program.

How Many Speeding Tickets Until Your Rates Go Up?

Most insurers don’t disclose exactly how many speeding tickets within a set timeframe will trigger a rate increase. But here are some general guidelines:

• One ticket will likely have little or no impact on your rates, especially if it’s a minor offense and you otherwise have a clean driving record.

• Two tickets within 1-3 years will often result in a rate hike. Some insurers may raise rates after just one ticket.

• Three or more tickets within 3-5 years will almost certainly result in increased premiums with most auto insurance companies.

• A single major speeding violation like reckless driving can be enough to increase your rates.

• Remember that rates are also impacted by other factors like your age, location and driving history as a whole.

Tips for Reducing Insurance Costs After a Speeding Ticket

If you do get an unfortunate speeding ticket, here are some tips that may help minimize its impact on your insurance rates:

• Avoid further tickets – Multiple tickets compound rate increases. Drive cautiously.

• Enroll in traffic school – Completing a defensive driving course can sometimes prevent a premium increase.

• Shop for better rates – Compare quotes from other insurers. Some may weigh the ticket less heavily.

• Raise your deductible – Opting for a higher deductible can help offset the cost of a rate increase.

• Review your policy – Adjusting your coverages and limits can also help blunt the impact on your bottom line premium.

• Ask about discounts – See if you qualify for any new discounts to help lower your costs.

• Improve your credit – Insurers also weigh your credit-based insurance score. Improving this can aid your rates.

• Appeal the ticket – Contesting the ticket in court may lead to its dismissal, preventing a rate increase.

Can Speeding Tickets Lead to Policy Cancellation?

In most cases, a single speeding ticket is unlikely to result in your policy being canceled by your insurer. However, multiple serious tickets or violations like reckless driving, street racing or DUIs may cause your insurer to view you as too high risk and non-renew your policy.

Drivers considered a high cancellation risk may need to obtain a policy through their state’s assigned risk plan, often at a much higher rate. That’s why doing your best to maintain a clean driving record is key to keeping affordable insurance coverage.

Final Thoughts

Speeding tickets can end up being quite costly, not just due to initial fines but also the insurance rate hikes that follow. That’s why avoiding speeding and other violations is so important for keeping car insurance affordable.

Conversely, consistently safe, responsible driving behavior rewards you with the lowest possible insurance rates. So obey all posted speed limits, follow traffic laws, and practice defensive driving techniques. Your auto insurance company will thank you, in the form of premium savings that can add up to hundreds of dollars per year.

Key Takeaways

• Speeding tickets substantially increase car insurance rates, often 20-30% or more

• Drivers with clean records enjoy the lowest premiums and maximum discounts

• Just one ticket can negate “good driver” and “preferred driver” savings

• Multiple tickets or major violations like reckless driving can be even more costly

• Avoiding tickets is vital, but practicing safe driving habits also lowers rates

• A few tips can help reduce the impact of a ticket, but avoiding them altogether is best

So drive safely, obey speed limits, and keep violations off your record. Your insurance provider will reward you with lower long-term premiums, putting more money in your pocket over time.