Speeding Tickets and Insurance: How Much Will It Cost?

Quick answer

• A speeding ticket can increase your car insurance premiums, often by 10-20% or more.
• The exact cost depends on factors like your driving history, the severity of the ticket, and your insurance provider.
• Some tickets may have a minimal impact, while others can significantly raise your rates for several years.
• You can often mitigate the cost by taking defensive driving courses or shopping around for new insurance.
• The ticket stays on your record for 3-5 years, influencing your rates during that time.

What to check first (before you buy or change coverage)

Before you get a speeding ticket, or if you’ve just received one, it’s crucial to understand your current insurance situation and what potential changes might look like. This proactive approach can save you money and stress.

Coverage needs

Assess if your current policy still aligns with your driving habits and financial situation. Do you need more or less comprehensive coverage? For example, if you’ve paid off your car, you might consider reducing collision coverage to save money, but be aware of the risks. If you’re driving a new or valuable vehicle, ensure your coverage is adequate.

Deductibles and premiums

Your deductible is the amount you pay out-of-pocket before insurance kicks in. A higher deductible usually means a lower premium, but it also means you’ll pay more if you have a claim. Conversely, a lower deductible means higher premiums. After a ticket, your premium is likely to increase, so understanding your current deductible and how it interacts with your premium is key.

Exclusions and limits (general)

Every insurance policy has exclusions (situations not covered) and limits (the maximum amount the insurer will pay). It’s vital to know what your policy doesn’t cover. For instance, some policies might have specific limitations on coverage for high-risk driving activities. Always review your policy documents or contact your insurer to clarify these details.

Claim process

While a speeding ticket itself isn’t a claim, understanding how your insurer handles claims can shed light on their overall approach to risk. A smooth claims process indicates a reliable insurer. If you were involved in an accident with the speeding ticket, understanding the claim process is even more critical.

Bundling and discounts (general)

Many insurers offer discounts for bundling policies (like home and auto) or for safe driving. If you have multiple policies with one insurer, a ticket could jeopardize these discounts. It’s worth exploring if you can get a better rate by bundling with a different company or by taking advantage of available discounts, such as those for completing a defensive driving course.

Step-by-step (simple workflow)

This workflow outlines the steps you should take after receiving a speeding ticket to manage its impact on your car insurance.

1. Understand the Ticket:

• What to do: Carefully read the ticket. Note the violation, the speed limit, your alleged speed, the court date, and any fines.
• What “good” looks like: You clearly understand the infraction and the immediate penalties.
• Common mistake: Not reading the ticket thoroughly, leading to missed court dates or misunderstanding the charges. Avoid this by keeping the ticket in a safe, visible place and reviewing it immediately.

2. Assess Your Driving Record:

• What to do: Obtain a copy of your official driving record from your state’s Department of Motor Vehicles (DMV) or equivalent agency.
• What “good” looks like: You have an accurate record of all past violations and accidents.
• Common mistake: Assuming your record is perfectly clean when it might contain old, forgotten infractions. Check it to be sure and to see how long the ticket will remain on it.

3. Contact Your Insurance Agent/Company:

• What to do: Inform your insurance provider about the ticket as soon as possible. Some policies require you to report any moving violations.
• What “good” looks like: Your insurer acknowledges receipt of the information and explains the next steps.
• Common mistake: Hoping the ticket won’t be reported or trying to hide it. Insurers often receive this information directly from the state, and failing to report it can lead to policy cancellation or denial of claims.

4. Inquire About Premium Impact:

• What to do: Ask your insurance agent or representative specifically how this ticket will affect your premium and for how long.
• What “good” looks like: You receive a clear, written estimate of the premium increase and the duration.
• Common mistake: Accepting a verbal estimate without written confirmation. This can lead to disputes later.

5. Explore Options to Mitigate the Cost:

• What to do: Ask about defensive driving courses or traffic school options that might reduce the points on your license or prevent the ticket from affecting your rates.
• What “good” looks like: You have a list of approved courses and understand their impact on your insurance.
• Common mistake: Assuming all tickets are equally unfixable. Many states and insurers offer ways to lessen the blow if you act proactively.

6. Consider a Defensive Driving Course:

• What to do: If eligible, enroll in and complete an approved defensive driving course.
• What “good” looks like: You receive a certificate of completion.
• Common mistake: Taking a course that isn’t approved by your state or insurer, making it ineffective. Always verify course approval beforehand.

7. Pay Fines and Fees:

• What to do: Pay the fines and court fees associated with the ticket by the due date.
• What “good” looks like: All payments are made on time, avoiding further penalties.
• Common mistake: Missing payment deadlines, which can lead to license suspension, additional fines, and a more severe impact on your insurance.

8. Compare Insurance Quotes:

• What to do: After understanding the potential impact from your current insurer, shop around for quotes from other insurance companies.
• What “good” looks like: You have multiple quotes and can compare them objectively.
• Common mistake: Sticking with your current insurer without checking competitors, especially after a rate increase. A ticket might make you a higher risk for some insurers, but a better risk for others.

9. Evaluate Policy Options:

• What to do: When comparing quotes, look at coverage levels, deductibles, and the total cost, not just the premium.
• What “good” looks like: You find a policy that offers comparable or better coverage at a more affordable price.
• Common mistake: Focusing solely on the lowest premium without considering the coverage details, potentially ending up underinsured.

10. Make a Decision:

• What to do: Decide whether to stay with your current insurer (if their offer is competitive after the increase) or switch to a new provider.
• What “good” looks like: You have a new or renewed policy that meets your needs and budget.
• Common mistake: Delaying the decision, leading to a lapse in coverage or continuing to pay higher premiums than necessary.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not reporting the ticket to your insurer	Policy cancellation, denial of future claims, higher premiums when you eventually switch insurers.	Report the ticket immediately. If you missed the deadline, be upfront and explain the situation.
Ignoring the ticket or court date	Heavier fines, license suspension, increased insurance rates, and potentially a warrant for your arrest.	Address the ticket promptly. Pay fines, attend court, or take required actions by the deadlines.
Failing to complete a defensive driving course	The ticket remains on your record, leading to a sustained premium increase and potential points on your license.	Enroll in and complete an <em>approved</em> defensive driving course if eligible and if it can reduce the ticket’s impact.
Assuming all tickets have the same impact	Underestimating the cost of a severe speeding ticket or overreacting to a minor one.	Research how your specific ticket type and severity typically affect insurance rates in your state.
Not shopping around for insurance	Paying significantly more than necessary for coverage after your rates increase due to the ticket.	Obtain quotes from at least 3-5 different insurance companies after receiving a ticket.
Focusing only on the lowest premium	Purchasing a policy with inadequate coverage, high deductibles, or poor customer service.	Compare coverage levels, deductibles, and customer reviews alongside the premium when choosing a new policy.
Not understanding your policy’s exclusions	Discovering that the ticket (or a future incident) isn’t covered as you expected, leading to unexpected out-of-pocket costs.	Read your policy documents carefully and ask your insurer to clarify any confusing terms or exclusions.
Letting the ticket expire or go unpaid	Escalating legal troubles, including license suspension, inability to renew registration, and collections.	Pay all fines and fees by their due dates.
Not checking your driving record	Missing old violations that might be contributing to your current rates or incorrectly believing the ticket is cleared.	Periodically obtain your official driving record to ensure accuracy and to track how long violations will affect your record.

Decision rules (simple if/then)

Here are some decision rules to help you navigate the impact of a speeding ticket on your car insurance:

• If you receive a speeding ticket for significantly exceeding the speed limit, then expect a substantial increase in your insurance premiums because insurers view this as high-risk behavior.
• If you have a clean driving record with no prior violations, then the impact of a single, minor speeding ticket might be less severe, potentially a small increase or a warning.
• If your state offers traffic school or defensive driving courses that reduce points or dismiss minor violations, then consider taking one to mitigate the premium increase because it shows proactive responsibility.
• If your current insurance provider has already raised your rates significantly after the ticket, then it’s wise to shop for quotes from other insurers because you might find a more competitive rate elsewhere.
• If you were involved in an accident at the time of the speeding ticket, then your insurance rates will likely increase much more dramatically due to the combination of a violation and a claim.
• If the speeding ticket is your second or third moving violation within a short period (e.g., 1-3 years), then your insurance company may non-renew your policy, or your rates could become prohibitively expensive.
• If you are unsure about the exact impact of the ticket on your policy, then contact your insurance agent directly for a clear explanation of the premium adjustment and its duration.
• If the cost of your insurance increases substantially, then re-evaluate your coverage needs to see if you can adjust deductibles or reduce coverage types (like collision on an older car) to offset the higher premium.
• If you believe the ticket was issued in error or unfairly, then consider contesting it in court, as a dismissal or reduction could prevent any insurance rate increase.
• If you are under 25 years old, then a speeding ticket is likely to have a more pronounced effect on your premiums compared to older, more experienced drivers.
• If your ticket results in points on your license, then be aware that these points, along with the ticket itself, contribute to your insurer’s risk assessment and thus your premium.

FAQ

How long does a speeding ticket affect my car insurance rates?

Typically, a speeding ticket will affect your insurance rates for three to five years, depending on your state’s laws and your insurance company’s policy.

Will a minor speeding ticket always increase my insurance?

Not always. A very minor speeding ticket, especially if you have a clean driving record, might result in no increase or a very small one. However, many insurers will still apply some increase.

Can I get a discount after taking a defensive driving course?

Yes, many insurance companies offer discounts for completing an approved defensive driving course, and in some cases, it can help prevent a rate increase from a ticket.

What is the average insurance increase for a speeding ticket?

The average increase can range from 10% to 20%, but this is highly variable. Some tickets might lead to higher increases, while others might have a minimal impact.

What happens if my insurance company finds out about a ticket I didn’t report?

If your insurer discovers a ticket you failed to report, they may cancel your policy, refuse to renew it, or deny claims. It’s always best to be honest and report it.

Should I pay the ticket or fight it?

This depends on the severity of the ticket, your driving record, and your state’s laws. If you have a strong case or the potential insurance increase is very high, fighting it might be worthwhile, but consult with a legal professional or traffic attorney.

Does the type of car I drive affect how much my insurance goes up after a ticket?

While the car’s make and model influence your base premium, the impact of a speeding ticket is primarily based on your driving behavior and risk profile, not the car itself.

What if I get a ticket in a different state?

Most insurance companies will still factor in tickets received out-of-state, as they often have access to national driving record databases.

How can I find out if a defensive driving course is approved?

Check with your state’s DMV or your insurance provider. They can usually provide a list of approved course providers.

What this page does NOT cover (and where to go next)

This article provides general guidance on how speeding tickets can affect car insurance. It does not delve into specific legal advice or offer precise financial figures.

• Specific legal advice for contesting tickets: Consult with a traffic attorney or legal professional for guidance on fighting your ticket in court.
• Detailed state-specific insurance regulations: Research your state’s Department of Insurance for rules governing premium increases and ticket reporting.
• Exact financial projections for all scenarios: Use online insurance calculators or get direct quotes for personalized estimates.
• Impact of tickets on other types of insurance: This article focuses solely on auto insurance.