Does A Speeding Ticket Affect Insurance?

Written by J. Hirby and Fact Checked by The Law Dictionary Staff  

Although the effect that a speeding ticket has on your premium varies based upon the insurance company, it's safe to say that a speeding ticket is likely to make insurance more expensive. Often, rates don't increase immediately. That's because insurance companies don't review driving histories every month. Instead, they'll take a look at a driver's history when a new policy is being purchased or when a current policy is being renewed. If you receive a speeding ticket, it may not affect your insurance rates for several months.

Single or Multiple Speeding Tickets

Drivers who are older than 25 and have not had a speeding ticket within the last three years will see only a slight increase in their rate. However, that changes dramatically for drivers who rack up several tickets within the space of a few months or a couple of years. Many insurance companies increase rates drastically for second and subsequent speeding tickets. This can become an especially big problem for the driver with multiple speeding tickets and other infractions or accidents on their record. An insurance company does have the right to cancel a policy or to simply not renew it. A driver in these circumstances may have trouble finding a new insurance company, and when they do they may be faced with extremely expensive premiums.

Most drivers don't have so many complications while on the road. A single speeding ticket may raise their rates for six months, a year or more, but drivers who maintain a clean driving record after that will likely see their insurance rates drop. In fact, being a safe, responsible driver is the best way to keep insurance affordable.

Why Raise Rates?

Insurance companies use statistics to determine what rates each driver will be charged. Years of experience demonstrate that drivers who get speeding tickets tend to get in more accidents. Accordingly, insurance companies are more likely to be forced to pay out settlements when a driver with one of their policies causes an accident. Higher insurance premiums are designed not only to cover the higher costs of the insurance company, but also to penalize the driver so that they might think twice before speeding next time.

The best way to avoid insurance rate increases is by slowing down on the road. A safe driver who watches their speed doesn't need to worry about paying for tickets or paying more for car insurance.

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