Got a speeding ticket – how does it affect my auto insurance?

Got a speeding ticket - how does it affect my auto insurance?Getting a speeding ticket will likely increase your auto insurance premium. You may not see immediate changes depending on when your renewal date occurs. If you have several traffic violations in a three year period, your carrier may decide to drop you.

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If your rates increase as a result of your speeding ticket, it likely won’t happen until your policy is reviewed by your auto insurance carrier. Depending on your policy, this may be once a year or once every six months. If there is a qualifying event that would’ve normally lowered your insurance rates, then you may see little or no change.

Drivers under 25 are considered higher risk. If you are turning 25 before your policy renews, the speeding ticket may offset the savings you would have received for reaching an age that is considered less risky for auto insurance carriers. The same thing could happen if you had traffic tickets nearly three years ago that are about ready to fall off of your record.

How much will my rates increase?

How do speeding tickets affect insurance rates? Your auto insurance rates are determined based on how risky the insurance company considers you to be. Insurance carriers will have different methods for calculating risk, and thus different methods for determining rates.

The number of speeding tickets you have on your record as well as at fault accidents and auto insurance claims will all play a role in how much your rate may increase. The difference is how much weight the insurance company applies to each of these fields.

The best case scenario is not having any prior insurance claims and few traffic violations on record. If your insurance company has been insuring you for any length of time with no insurance claims, there may be little change to your insurance rates.

If you decide to go to a new insurance company after receiving a speeding ticket, that insurance carrier is likely to quote you a higher rate. With a recent ticket, you are deemed a larger risk by a company that is deciding whether to take you on as a new client.

Got a speeding ticket - how does it affect my auto insurance?

Will I be dropped from my insurance company for a speeding ticket?

If you have several traffic violations, there is a chance that your insurance company will decide to drop you has a client. It is against the law for your insurance company to cancel your insurance policy unless you have committed fraud, haven’t paid your bill, or don’t have a driver’s license. However, they do have the ability to refuse to renew your policy when it expires for any reason.

The likelihood of not being renewed as a result of a speeding ticket is minimal. If you have had several over the course of the policy, then this may be a possibility. The risk would have to be significant for this to happen. You would be more likely to see a large increase in your premium amount. It would be much more probable for you to not be renewed by your insurance carrier for an infraction such as drunk driving.

What should I do if I am not renewed by my insurance company?

If your policy is not renewed by your insurance carrier, you will need to find a company that offers insurance products for high risk drivers. Unless the insurance company is going out of business or not offering auto insurance anymore, the only reason you would not be renewed is for being a high risk driver.

Got a speeding ticket - how does it affect my auto insurance?As a high risk driver, you can expect to pay higher premiums for less coverage. Insurance companies can count on the majority of low risk drivers to pay their premiums and not have to make claim. High risk drivers give the insurance company an opportunity to charge more. There is a higher expectation that accidents will happen and claims will be made by the high risk drivers.

If you are still having a difficult time finding a carrier that will insure you, the alternative is to find companies that specialize in non-standard auto insurance. Non-standard insurance is for drivers that are unable to find insurance products at a reasonable price from other carriers. Even if you are able to find insurance at other locations, this is likely your best option for good rates as a high risk driver. Make sure to review the policy to ensure all of your needs are met.

Hopefully now you have a better idea of how speeding can affect you. It’s not something to take lightly! Receive your free online auto insurance quotes by entering in your zip code now!