Does a Speeding Ticket Raise Your Insurance Rates?

Hearing a siren and seeing flashing lights in your rearview mirror will get your heart pumping instantly. Your eyes dart right to your speedometer. Perhaps you pressed a little harder on the accelerator than you realized, or maybe you missed a change in the speed limit.

Unfortunately, the cost of a speeding ticket doesn’t stop with the fine itself. When you receive a speeding ticket, your car insurance rates may also go up, even if you have a clean driving record. Insurance companies consider various factors when setting rates, and a speeding ticket is one of them.

How a Speeding Ticket Can Affect Your Auto Insurance

People aren’t obligated to notify their insurance company that they’ve received a speeding ticket, but insurers have ways of finding out. Insurance companies periodically check your driving records, especially around the time of your renewal, to see if any incidents have cropped up since the last term.

If your auto insurance company discovers you received a speeding ticket, it can impact your auto insurance in the following ways:

Your rate could increase – Insurance companies usually consider the discovery of a new speeding ticket in context. They will assess your overall driving record, the amount of time since your last offense, and how far over the speed limit you were driving, among other factors. Some companies have “driver forgiveness” policies that forgive a random, isolated speeding ticket.
You might miss an opportunity to decrease your premium in the future – Your insurance company may credit you with a safe driver discount for having several years of good driving experience. If you get a ticket, you might lose that discount or miss out on receiving it in the future.
You might lose access to standard coverage – If you’ve had multiple traffic tickets and accidents, standard insurance companies could refuse to insure you, leaving you to seek coverage through a non-standard insurance carrier. In extreme situations, you may have to get insurance through a state-run plan with minimum coverage for high-risk drivers.

Wondering about Driver’s License Points?

Many states have a driver point system that assigns points to drivers for speeding tickets, other traffic violations, or accidents.

For example, in Tennessee, drivers are assigned one point for speeding up to 5 miles over the limit. They get three points if they get caught going between 6-15 miles per hour over the limit. The faster you are cited driving, the higher the points increase, all the way up to 8 points for driving in excess of 46 miles per hour over the speed limit.

While some states do not use an official points system, they may be part of an agreement with other states to share traffic violations and accidents between states. Many states may opt to share driver information voluntarily, even if they are not part of an interstate agreement.

How Much Will My Insurance Rates Increase after a Speeding Ticket?

Depending on how your insurance company factors tickets and accidents into their pricing, drivers typically see an average increase in their auto insurance premium of 24% after just one speeding ticket, which could equate to several hundred dollars more per year.

Why is that?

Insurance companies utilize statistics to help them measure risk and rate appropriately. For example, research shows that drivers who get one or more traffic tickets pose a higher risk than drivers with no tickets.

The National Highway Traffic Safety Administration reports that speed was a factor in almost a third of all car accidents involving fatalities over the last 20 years.

Insurance companies charge more for drivers that have traffic tickets or accidents on their record to offset the likelihood that the driver will get into an accident and file an insurance claim.

This information begs the question of how much you can expect to pay if you get a speeding ticket. A study by Quadrant Information Services shows the difference in the amount you may have to pay based on your state. The study took rates from up to 6 auto insurers in 10 zip codes in each state and rated them with a 40-year-old driver with full coverage, good credit, and a 2017 Honda Accord.

The study indicates that drivers in Michigan experience some of the steepest increases in auto insurance rates after getting a ticket, with the following findings:

11-16 mph over the limit – 29% increase ($696 additional)
16-29 mph over the limit – 43% increase ($1,010 additional)
Over 30mph over the limit – 70% increase ($1,666 additional)

Montana, on the other hand, was found to have the lowest increase percentages:

11-16 mph over the limit – 8% increase ($126 additional)
16-29 mph over the limit – 12% increase ($195 additional)
Over 30mph over the limit – 12% increase ($195 additional)

What If I Get Multiple Speeding Tickets?

If you get multiple speeding tickets, you may be classified as a “high-risk” driver. While there is no standard definition of “high-risk” drivers in the industry, insurance companies generally account for certain factors when determining whether a driver is in the “high-risk” category.

Drivers in the “high-risk” category will typically pay more for their auto insurance than drivers with cleaner driving records. The more faults you have on your driving record, the more you will likely pay, regardless of the state you live in or which state issues your traffic ticket.

How Long Will These Rates Affect Me?

Incidents typically stay on your driving record for three to five years, but more serious offenses, like DUIs, may stay on your record for much longer. You can find the regulations for the length of time incidents remain on your record at your state’s department of motor vehicles.

Incidents that are likely to raise insurance premiums include the following:

Speeding tickets
Driving under the influence of drugs or alcohol (DUI)
Car accidents
Speeding tickets or car accidents in close succession

When Can I Expect a Rate Increase?

Police departments do not contact insurance companies to tell them they issued a speeding ticket to a driver. Your insurance company won’t know if you went to court for a speeding ticket or whether you were deemed guilty.

Some states, like Illinois, have court supervision laws that minimize the consequences of a speeding ticket. Essentially, if you have a clean driving record prior to the ticket, the judge may be willing to extend court supervision. During a designated period of time, you’ll need to meet certain expectations like avoiding additional traffic citations or completing a traffic safety course. Once you’ve made it through the supervision without issue, the information of the citation will not be reported to the public or insurance databases. While you may still need to pay fines and court costs, being able to avoid gaining points or insurance rate increases can be a huge break.

Insurance companies are most interested in your driving record when you have an upcoming renewal. They may check your driving record at that time, and they would likely increase your rate if they discover a speeding ticket. As mentioned earlier, you may also be at risk of losing your good driver discount.

If your renewal has already been issued and you get a speeding ticket before the new term, you probably won’t see an increase in your premium right away. However, your insurance company will likely discover the ticket at the next renewal.

What You Can Do to Reduce Premiums Following a Speeding Ticket

You have a few options for keeping your car insurance premium lower if your rate increases due to a speeding ticket.

Here are some things you can try:

See if your state offers an approved safe driving course.
Enquire with your insurance agent if you are getting all applicable discounts.
Consider increasing your deductibles if you feel financially comfortable doing so.
Review your coverages to make sure you have the best selections for your unique situation.

What If I Contest a Speeding Ticket?

In most states, you have the option of going to court to contest a speeding ticket. You can usually represent yourself or retain a lawyer to help.

The court’s website will tell you everything you need to know about how to contest your ticket. The process varies between jurisdictions, and there is no guarantee the court will dismiss your ticket.

If you choose to contest a ticket, be aware that you must abide by the rules, including acting before the deadline specified on your ticket.

Do I Need to Report a Speeding Ticket to My Insurance Company?

There are no laws requiring drivers to notify their insurance companies when they receive a speeding ticket. There are no penalties or consequences of any kind for not informing them, and most insurance companies do not have the expectation that you would notify them.

However, your insurance provider will review your driving record and the driving records of all listed drivers on your policies at every renewal. If they discover one or more household drivers have tickets or accidents, the rate may increase accordingly.

The only exception is if you receive a speeding ticket in conjunction with an auto accident. It’s best to divulge the speeding ticket when filing the insurance claim for the accident so the insurance adjuster has all the facts.

Let Us Find You Affordable Rates with Clearcover

It’s frustrating to get a speeding ticket, especially when you’re focused on getting somewhere important. In addition to paying the speeding ticket, your car insurance rate is likely to increase. To help navigate the situation, you may want to consider seeing if your state offers a safe driving course, contesting your ticket if appropriate, looking for missed discounts, or updating your coverages.

Every auto insurance provider has different criteria for charging drivers with speeding tickets. If you’re looking for a new auto insurance provider, it pays to shop around. Check your price to see how much you could save with Clearcover!