Speeding Tickets and Car Insurance

December 17th, 2010 Bob Dawson Leave a comment Go to comments

The majority of drivers behind the wheel drive faster than the posted speed limit signs, at least at one time or another. Whether you are running late, not paying attention to your speed or just love driving fast, you risk getting caught. No matter what your reason for speeding — if you are caught you will have to pay the consequences for your insurance.

While most speed demons don’t consider how driving fast can affect their insurance rate — it absolutely can and will. That’s right, in addition to having to pay for speeding tickets; you could also experience an increase in your auto insurance bill, as well. In fact, if a driver is caught excessively speeding, their auto insurance bill could actually double, even if it’s their very first offense.

If you are wondering why your insurance premium is subject to increase after just one speeding ticket, it’s because studies have shown that the faster you drive, the more deadly it can be. In addition, insurance companies want to avoid paying the high costs of personal injury and damage to vehicles, which increases, as well.

You should also know if you have received a speeding ticket — the insurance company may apply a temporary surcharge to your premium for up to three years. Other insurance companies may increase your insurance premium by up to 26% for the first year, slowly lower the amount, and then drop it after the three years.

The amount of the increase and the length of the increase are dependent on several factors such as:

*Personal driving record and relationship with the insurance provider — Some insurance companies choose to waive the extra charge if the customer has maintained a lengthy relationship with their company and maintained a clean driving record, prior to the speeding ticket.

*Your location — Where you live determines the cost of an insurance premium because each state has different laws about insurance costs. While some states do not allow a surcharge for a policyholder’s first offense, some states mandate that insurance companies raise their rates after certain speeding infractions.

*The excess you were driving over the speed limit — Extreme speeding (driving at least 90 mph or 15 mph over the speed limit) is also known as, reckless driving, which is considered a major violation. In fact, even first-time drivers who have been ticketed for reckless driving can more than double their insurance premiums.

Speeding can also affect other aspects, aside from your car insurance premium. Before choosing to provide coverage to you, insurance providers look at every person’s driving record to determine whether you are a high-risk driver, which can result in higher insurance rates (health, life, disability and long-term insurance) and keep you from being insured by some providers.

There are more reasons to drive below the speed limit besides avoiding a car accident or a ticket — it can adversely affect your car insurance, as well. Therefore, if you want to save yourself from the hassle of paying more on car insurance or trying to find a new company to insure you — play it safe by driving smart, and keeping it under the speed limit.

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