I Just Got a Speeding Ticket. How Much Will it Raise My Auto Insurance Premium?

There is no definite answer as to how much it will cost one’s auto insurance premium after obtaining a speeding ticket. To begin with, it can be said that the outcome may vary depending on the state and on the guidelines of the insurance company itself. There isn’t any universal or generic policy that determines what happens to the insurance coverage of a driver after getting a speeding ticket.

There are some states that have laws that discuss when and why insurers of automobiles have the capacity to make changes on the policyholder’s premiums. Usually, insurers are not allowed to raise the premiums in cases where the insured gets his first speeding ticket.

Various companies have different procedures on raising the amount of premiums. There are some which take into consideration the gravity of the violation, and may raise the rates due to the violation. However, there are also some which raise the rates by a specific amount for each violation.

In severe or more difficult cases, the insurer may discontinue covering a driver of an automobile under his or her present policy. In lieu of this, the insurance company may contend that the driver should buy a policy that is high risk. A high risk policy usually costs about two to three times the price of an ordinary policy. More careful insurance companies can even choose to cancel the policy of a client if the harm done is extreme.

Proper investigation will be conducted by the insurer in order to determine the rate that will be added to the insurance premium for an automobile. One of the things it checks are the driving records of the automobile’s drivers.

Insurance companies also have the usual rates and changes in the coverage. It may give discounts to drivers who do not have speeding violations. These discounts can usually exceed twenty percent, and result in substantial potential for savings. However, drivers also need to take care of their records, as safe driver discounts can be removed if the insurer learns of a speeding ticket incurred by a certain policyholder, or learns of a series of bad driving records.

Some insurance companies may also base their decisions on the policy and the rates on the increase of premium on the number of points on their client’s license. The license points of a driver expires over time, and insurance companies who are able to calculate the rates this way most of the time reduce the premiums as there is a drop on the point tallies.

Changes to one’s coverage can still be avoided. To make sure that a speeding ticket will not affect one’s auto insurance premium, the easiest way is to have it plead to a non-moving violation. It is a type of traffic violation that is civil, and as its name implies does not involve the actual movement of the automobile. An example of this is not wearing a seatbelt. Most municipalities also have the opportunity to downgrade the violation if a policyholder hires a lawyer to explain on his behalf. Most cities seem enthusiastic about this since most of the time, they enter into plea bargains for tickets to be given the most expensive non-moving violation that can cost five times the original or initial offense. Let’s take this as an example, a driver of an automobile may receive a ticket for speeding with a fine of $50, pay attorney’s fees of $100 in order to plead it down, and may end up paying a fine of $250 for the non-moving violation. At the onset, it may seem like a bad deal; however, if the insurance premiums rise by as much as twenty five percent for three years, one may realize that the initial undertaking was a bargain.