10 Tickets That Have the Biggest Impact on Your Insurance Rates

These days, being concerned about finances is pretty much the norm. We’re always looking for ways to save money wherever we can.

One way to save that is often overlooked is committing to driving safely. When we’re careful on the road, we’re proactively doing what we can to keep our insurance rates as low as possible. More importantly, we improve our chances of staying out of an accident.

If we’re not driving carefully and end up receiving a traffic violation, it could have a negative impact on our insurance rates. Here’s a quick breakdown of the traffic violations that can cause the biggest increase in insurance rates.

How Traffic Tickets Impact Insurance Rates

In the United States, all states (apart from New Hampshire and Virginia) require drivers to carry car insurance. The purpose of this regulation is to make sure that people and their vehicles are financially protected if an accident happens on the road.

In the event of an accident, most people generally will not have the funds on hand to pay all of the bills incurred from the accident out of pocket. At-fault drivers may also experience legal challenges if injuries or damages are incurred, presenting an even greater financial burden.

Keeping this perspective in mind, traffic tickets help keep roads safer. Academic research has found that regions with higher traffic tickets experience fewer accidents. Safer roads are good for everyone.

When you get a ticket for a traffic violation, you’ll typically need to pay a fine and report the infraction to your insurance company. Behind the scenes, when determining the rate that you pay, insurance companies are relying on statistical models. These models include certain demographic variables, data around past driving records, and other quantitative details to calculate the rates they charge their customers. One of the factors they consider is your track record for safe driving, and a ticket is an indication that your driving needs improvement.

In some cases, it may be possible to contest a ticket or participate in continued driver education to remove the ticket. If you are issued a violation, it will remain on your record and can impact your auto insurance rates for several years. The specific timeframe will depend on the severity of the infraction, along with the state that issued your driver’s license.

Every infraction gets assigned a point value with the Department of Motor Vehicles (DMV). Depending on the state and the infraction, these points may stay on a driver’s record for several years, and in some cases, even permanently. Insurance companies use many different methodologies to calculate how your driving activity and history impacts your rate. DMV points don’t necessarily directly correlate to insurance points. Different insurance companies have different methodologies to calculate rates based on previous driving infractions.

Traffic Violations That Cause the Biggest Insurance Premium Increases

A general rule of thumb is that the amount an insurance rate increases is based on the severity of the traffic violation.

The reason? It’s an economic incentive to encourage safer driving practices. When drivers are careful and practice safe driving habits, insurance companies take on less risk. By taking on less risk, insurers will generally end up paying out fewer claims and are therefore able to run their businesses more efficiently.

While economic incentives can be very effective at reducing the risk an insurer may take on, the most important thing is that careful drivers lead to safer roads for everyone.

Here’s a breakdown of ten common traffic ticket types and how they impact insurance rates. Keep in mind that the impact of a traffic violation may vary between insurance companies.

1. Driving While Intoxicated Violation (DUI, DWI, OWI, or OUI)

Driving under the influence (DUI) refers to someone driving while impaired by alcohol or drugs. Driving under the influence is one of the most dangerous things a person can do on the road.

Similar to a DUI, drivers should also be aware of the following infractions:

Driving while intoxicated (DWI)
Operating while intoxicated (OWI)
Operating under the influence (OUI)

The penalties for each vary by state, and different regions have different definitions for each term. For instance, DWI, DUI, & OUI have no distinction in IL. However, in Texas, DUIs are designated for minors while DWIs are more serious offenses for non minors.

Operating a vehicle requires quick reflexes, a sense of presence, and situational agility. Driving while intoxicated impairs those skills and creates the potential for dangerous, and potentially fatal accidents.

Luckily, DUIs are entirely preventable, and the solution is simple: don’t drive after consuming substances. There are plenty of alternatives to driving under the influence, many as straightforward as using a ridesharing app or getting a sober friend to drive.

Not only are DUIs dangerous and entirely avoidable, but they will also result in lasting consequences to your driving record. In some cases, insurers will not be able to ensure you for a number of years after an impaired driving conviction. In other cases, DUIs may prevent drivers from obtaining insurance altogether.

Regardless of the situation, you can expect a DUI to make it harder—and a lot more expensive—to get the insurance you need to be a safe driver.

2. Violation for Driving on a Suspended License

It’s important to remember that driving is a privilege, not a right. In order to maintain that privilege, motorists must remain in good standing with the Department of Motor Vehicles (DMV).

There are a number of reasons why a driver’s license may be suspended—it’s not just about whether a person has driven dangerously or committed a crime. There are millions of people in the United States whose licenses become suspended due to unpaid fines. Regardless of whether or not you are a safe driver, operating a vehicle without a valid license is illegal and can result in significant consequences.

Even if your license has been suspended, you are still responsible for maintaining insurance. Some insurance companies may offer restricted insurance coverage to drivers with suspended licenses. However, if you choose to drive with a suspended license, insurance companies have no choice but to consider you a high-risk driver.

3. Hit and Run Violations

Hit and run violations are serious offenses that have the potential to cause significant harm.

Accidents happen, but it’s important for drivers to be accountable for their decisions. This means staying at the scene, following the law, and accepting the consequences. This level of accountability is necessary for roads to be safe, and for people to enjoy the privilege of driving.

In the United States, a hit and run offense is a serious crime with a statute of limitations of several years, depending on the state. The consequences may include suspension or cancellation of your driver’s license, and even prison time. As a result, it will be extremely difficult to find insurance.

No matter the scope of the incident, it’s important to remain at the scene of an accident, comply with law enforcement, and be honest.

4. Reckless Driving

Reckless driving is considered a criminal offense because it assumes an intent to harm. So if you’re not feeling in control of your driving on the road, it’s better to pull over to the side of the road and take a breather. Even when you think you’re in control or that you’re not going to get caught, it’s possible for a situation to escalate and become more dangerous than anticipated.

This is why law enforcement and insurance companies take reckless driving offenses seriously. With these infractions, even if you haven’t done any harm, you can expect your insurance rates to rise substantially as a penalty. From an insurance company’s perspective, reckless drivers are considered very high risk to insure due to the potential for a repeat offense.

So what exactly is reckless driving? Examples include, but are not limited to, improper passing, performing stunts, intentionally failing to obey traffic laws, and sudden braking.

Safe driving requires a focused mind, a calm state, and a high degree of personal responsibility.

5. Careless Driving

Unlike reckless driving, careless driving is often not a criminal offense. However, it can still carry a hefty fine. In some cases, depending on the situation and location, careless driving may carry a misdemeanor charge.

Careless driving is defined as driving without due care for other people on the road. Example infractions include speeding, illegal lane changes, aggressive driving, honking, or other negligence.

Sometimes, drivers may not even be aware of their careless driving habits. In these cases, a careless driving infraction might serve as a wake-up call to the need for more personal responsibility behind the wheel. Depending on the specific nature of the violation, a careless driving ticket has the potential to substantially increase insurance rates.

Safe driving habits are a necessity to maintain the privilege of driving.

6. Speeding Violation

While speeding is relatively common among drivers, it can be incredibly dangerous. According to the United States Department of Transportation, speeding was a contributing factor to 26% of all motor vehicle fatalities in 2019. That’s why law enforcement is careful to enforce speed limit restrictions—especially in areas with dangerous driving conditions. When drivers speed, insurance companies take on the risks, so it makes sense for them to increase premiums for drivers who speed. The specific increase in rate will depend on the nature of the infraction.

In some states, drivers may be able to avoid an insurance premium increase by enrolling in a driver's education program. The idea is to provide some degree of leeway for course correction.

7. A Ticket for Running a Red Light

Running a red light, whether intentional or accidental, can be potentially very dangerous. A recent study from AAA found that two people are killed every day in red-light running crashes, including drivers, passengers, pedestrians, and cyclists. AAA also found that deaths from running a red light hit a 10-year-high in 2019.

For this reason, insurance companies generally handle red light violations similarly to speeding violations, and you may have the option to attend traffic school and avoid an increase in your insurance premium.

8. Tailgating

Tailgating is the practice of following another driver too closely. Depending on the state where you are driving, this type of traffic violation may be classified as an infraction or as a misdemeanor. Tailgating is especially dangerous in poor weather or road conditions, during rush hour, and at night.

Tailgating makes it a challenge for drivers to judge the distance between cars. If the lead driver is being tailgated but needs to stop suddenly, it could result in a rear-end collision—with the tailgating driver being at fault.

One of the challenges with tailgating is that cases can seem subjective, according to Justia. If there is an accident, insurance companies and law enforcement may need to see if there was tailgating, how severe it was, and if it was enough to establish fault. Even if there is no accident, tailgating is considered to be illegal in most states. In general, tailgating infractions are handled in a similar manner to speeding infractions. As a result, your insurance premiums may rise.

9. Failing to Signal

Safe driving requires collaboration and communication with other drivers. That’s why it’s important to use turn signals (also known as indicators or blinkers) as intended. Even if you think nobody is following you or around you, it’s important to keep up the habit. After all, it’s not just motorists who rely on driver turn signals to make safe driving decisions; pedestrians and bikers are also sharing the road with you.

In most states, drivers are required to use their turn signals 100 feet—about the length of six cars—in advance of switching lanes or making a turn. Tickets and violations for failing to signal are handled similarly to redlight, speeding, and tailgating violations.

10. Improperly Driving in a Carpool Lane

Carpool lanes, also known as high-occupancy vehicle (HOV) lanes, are reserved for vehicles with a driver and at least one additional passenger, and in some cases two.

The purpose of carpool lanes is to encourage ride-sharing as a means to ease traffic congestion and commuting stressors. In recent years, some vehicles have been eligible to receive HOV lane permits through clean energy and toll road programs. These initiatives are available on a state-by-state basis.

If you do not have the specified number of passengers in your vehicle, or if your vehicle does not meet the posted criteria for using the carpool lane, you are not legally permitted to use the carpool lane and must stick to the other lanes. Otherwise, you risk receiving an infraction. Whether or not the points will be applied to your driving record will depend on the state you’re in and where you’re driving.

How Do Insurance Companies Find Out About Tickets?

If you receive a ticket, it’s a good idea to be transparent about the incident with your insurance company. You can always reach out proactively to bring the matter to your insurer’s attention. When you are forthcoming, your insurer will be better positioned to work with your needs given the situation.

Alternatively, insurers will find out about tickets by checking a driver’s record with the DMV. When renewing an existing policy or selling a new one, insurers will pull these reports to determine the premium that you pay.

You can also pull your own driving record to gain transparency into this process and the rates that you pay.

Work With an Insurer That Values You

Shopping for insurance can be hard. How do you know that you’re paying a fair price for premiums? Will your insurer have your back in the event of an accident?

Clearcover understands that every driver is unique. Having the right insurance policy is crucial to being a safe driver on the road. When we are conscious of our driving habits, we can do our part to prevent accidents.

With a more thoughtful approach to car insurance, it’s possible to make roads safer for everyone. That’s why we are committed to finding the policy that best fits your needs, at the most affordable price. Get a free, no-obligation quote and see what you can save today.