Do All Traffic Tickets Impact Auto Insurance Rates?
There are many citations that a vehicle owner can receive, but not all will impact the cost of auto insurance coverage. Insurers rate drivers on the likelihood that they will suffer a loss. In the eyes of insurers, receiving a ticket for parking illegally, for example, does not indicate an increased chance that a motorist will file a claim. On the other hand, drivers who receive citations for moving violations will likely see rate increases, also referred to as surcharges.
Whether policyholders will experience a rate hike after receiving a ticket depends on the type of ticket and their current insurer. If motorists are insured with auto insurance companies that target drivers in the preferred market, receiving a single speeding ticket can cause them to lose their good-driver discount, which is usually in the area of 20 percent. This can cause premiums to increase quite a bit.
Motorists who are insured in the standard market may have a first violation forgiven by the insurer and not get surcharged as long as it is not a serious offense, but they can still lose their good-driver discount. This could include a ticket for failing to wear a seat belt or even speeding, but usually there are certain restrictions. For example, if policyholders are cited for going 5-10 mph over the speed limit, they may not see an adverse effect on rates. But being cited for driving 15 mph or more over the limit can lead to a surcharge.
More serious violations—such as a conviction for driving under the influence of drugs or alcohol, reckless driving, racing, excessive speeding, or speeding in a school zone—will likely cause a hike in premiums and may also lead to the carrier dropping the policyholder. This would not only lead to paying more for coverage, but also may mean the offending motorist would have to search for a company willing to provide a high risk car insurance policy.
Motorists who receive a rate increase after receiving a traffic violation can often benefit from shopping around and comparing quotes from various companies. There are many insurers available to consumers, and each has different pricing and targets unique clientele. While one carrier may charge a higher premium to those with blemishes on their driving record, other companies may be able to offer cheaper rates. Simply following the rules of the road will often lead to avoiding such situations altogether.