Getting a speeding ticket or traffic violation citation can be a major drag. But more than that, the uncertainty of what it might do to your car insurance premium can be a major add-on factor to the drag. The answer as to how much the ticket will affect your car insurance is not a simple one. Many variables enter into this equation, including your overall driving record, place of residence, type of vehicle you drive, insurance policy and insurance company culture. While a driver might avoid premium and rate hikes after the first speeding ticket in some states, this is not the case for most drivers with major traffic violations. Many insurers will raise rates after the first ticket unless the ticket is minor.
Different insurance companies have different practices when it comes to raising premiums. Some companies look at the actual ticket when raising car insurance rates, basing the adjustment on how much the driver exceeded the speed limit. Companies also take into account overall driving records. Many of them give good driving discounts of 25 percent initially. This discount will disappear when the driving isn't so good - as illustrated by a speeding ticket. For example, the average New York state auto insurance policy is $1313 a year, according to carinsurance.com. One speeding ticket removes the good driver discount amounting to $328 a year, or $1,062 over three years while the ticket is considered active.
Insurance companies generally use a point system to determine how much the ticket will jack up the premiums. Their presumption is that tickets and violations reflect on the driver's propensity for accidents. And, since bad driving makes it more likely the driver will file an accident claim, the insurance company boosts the rates. Insurance company points are internal company considerations unrelated to the official DMV point systems. However, the companies will provide their point system information upon request, so don't hesitate to ask the insurer for its point system. This will give you a clear idea as to how much a ticket will cost in terms of car insurance premiums.
Additional data exists to guide you in knowing the insurance cost for a ticket. Factors such as whether the violation was major or minor, whether it was actually reported on the driver's motor vehicle record - about one-quarter are not for various reasons - and where the ticket was given are important. One additional ticket can increase rates from $157 to $248 a year. Annual premiums rise for each ticket with many sources agreeing two or more tickets will cause rates to rise by at least 50 percent over three years.
Avoid this hikes by being a safe and smart driver that avoids tickets in the first place.