Speeding Tickets, Car Accidents and Your Insurance Rates Author:    Posted under: Auto InsuranceAuto Insurance RatesAuto Insurance Ratings and FactorsBlogs


There are many determinants to car insurance rates, but none more important than your driving record. Many people don’t think twice about the effect that speeding tickets have on their insurance costs, until they are faced with the actual quotes.

Studies show that 35% of auto accidents are caused by speeding. This obviously means the opposite for those who drive significantly slower – the slower you drive, the safer you are and the chances of getting into an accident are greatly reduced. This means it will cost you less money for auto insurance coverage.

Furthermore, examinations into the behavior of speeders also show that a majority of people who drive fast will temporarily reduce speed following issuance of a speeding ticket. The study also discovered that for a month after receiving speeding tickets, speeders would slow down, thereby reducing their chances of meeting an accident by 35%. Unfortunately, they eventually returned to their old speeding ways.

Auto insurance companies have varying policies when it comes to dealing with clients who are issued speeding tickets. Some companies usually wait until a policy is to be renewed before increasing a policyholder’s rates following a speeding ticket. While getting a ticket now won’t affect a policy which is already in place, it most likely will have an impact on the following year.

There are some companies that have a ticket forgiveness policy for their clients, especially ones they’ve had for a long period of time. As a rule, this would mean that the first ticket within a three-year period would not automatically earn their client a rate increase. Other car insurance companies however, will automatically increase a client’s rates upon receiving their first driving ticket.

Normally, insurers will consider how serious a client’s violation was before coming to a decision whether or not to increase car insurance rates. You will find that being issued a ticket for a speeding violation more than once will definitely and greatly affect your premium, while a speeding ticket that is just barely above the speed limit is more likely to be forgiven.

It is also important to note that a speeding ticket received for a traffic violation in one state will follow you into another state. The ticket will stay on your driving record for several years following issuance of it.

Other traffic violations are likely to have an impact on your car insurance rates as well, such as failing to yield to pedestrians, reckless driving, failing to signal when changing lanes, and driving without seatbelts.

There is one thing you can do to minimize the impact of a speeding ticket on your insurance rates – take a driver education course.  There are courses offered throughout the country and most states even allow drivers to take classes online. Taking a driver education course would generally save you the demerit points related to moving violations and the unfavorable impact         consequences to your car insurance rates.

Certain details are considered when determining the extent to which rates will be raised when it comes to accidents. They will need to determine who was at fault in the accident. Was the motorist they insured the one driving the car and did he cause the mishap? Was it the actually policyholder behind the wheel or did they allow someone else to drive their vehicle?

An affirmative answer to either of those questions will result in the insurance company deeming you as a risk and increasing your insurance rates. Other factors, such as being caught driving under the influence (of alcohol or drugs) or nonpayment of insurance resulting in a lapse of coverage will also be included in evaluations. A driver involved in an automobile accident who is either intoxicated or uninsured, will find his policy nullified (in the case of the former) and that his violation will go into his permanent driving records for future insurance companies to see. This will effectively make purchasing future car insurance made difficult by exorbitant fees.

In some cases, accumulating a number of speeding tickets and becoming involved in several accidents can cause you to completely lose your car insurance. You will be regarded as too much of a risk and auto insurance companies may even consider terminating your existing insurance policy.

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