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How do Traffic Violations Affect Insurance

Wednesday, July 25th, 2012
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Life can be hectic, and, in today’s world, many of us are constantly in a hurry to get from one place to another. On the road, some will drive much faster and ignore speed limits and other rules in order to save a few minutes on their daily commute. Does running that red light or dodging that stop sign actually become worth it in the end? In most cases, it does not. In addition to putting others at risk, partaking in these violations can have dire consequences including a pricey ticket.

Traffic violations can cost more than the simple price of a ticket. Any traffic violations that you may be involved in are tracked by your current insurance carrier. The faster you decide to drive, the more dangerous you are to others. As a result, the ticket received for driving 20 miles per hour over the legal limit will cost more than if you were to go 5. The more ticket and accidents acquired, the higher the price of insurance.

Both the frequency and severity of your violations give your insurance company a detailed insight into your driving future. This data will be used by insurance companies to determine how often they will most likely end up paying for a claim relating to an accident that you are involved in.

Traffic Tickets and Auto Insurance Rates

Each auto insurance company will differ in terms of how they handle situations regarding traffic tickets. While some may apply a surcharge for the first year, others may raise your rates for three, or more, years. The surcharge can be removed if you have no other traffic violations on your record.

Whenever you receive a traffic ticket, it is important to maintain a strong relationship with your current insurance company. There are many insurance companies that will wave rate increases for a single ticket as a reward for customer loyalty, or an otherwise clean driving record.

As the price of a ticket for a traffic violation increases with speed, as do insurance premiums. Frequently receiving speeding tickets, or driving at high speeds, will cause you to be seen as a significant risk to your insurance company.

Traffic Violations in Other States

It is a common misconception that receiving traffic tickets in other states will not negatively impact auto insurance rates. According to the DMV, all states are now linked together by a central database. No matter where your ticket is given, it will be reported, and could potentially be used to add points to your license in your home state. Those who do not pay their ticket on time, regardless of the state, may end up having their license revoked by the DMV in their home state.

Staying Away from High Premiums

Drivers who are concerned that their driving tickets will impact their auto insurance rates are advised not to admit guilt when receiving a ticket. If the driver admits fault, the ticket cannot be contested. In addition, before deciding to pay a fine or contest it, be sure to call your auto insurance provider to find out how certain ticket swill affect your rates. After discovering this information, you can make a decision.

 

Auto insurance isn’t the only insurance that you are likely to need. Do you know what are you covered for with critical illness coverage and insurance? To learn more about critical illness coverage click here.


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