Traffic violations can raise your auto insurance rates and premiums, so check out our buying tips below for the facts on what impact these incidents have, and what you can do about it. We’ve got clear, thorough information on the relationship between auto insurance and traffic violations like speeding tickets, moving violations, and more.

Traffic Violations and Auto Insurance

Traffic Violations and Auto Insurance
By Michelle Burton

In most states across the country, it is legal for insurance companies to set their own merit plans. What this means is, insurance companies can reward drivers for maintaining a good driving record and “penalize” other drivers for accumulating points on their drivers licenses or accumulating traffic violations. By penalize, we mean: auto insurance companies can raise your rates, cancel your discounts, or even cancel your auto insurance policy. It is important to note that insurance companies will penalize policyholders to the extent that your state law allows. 

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Speeding Tickets and How They Affect Auto Insurance Rates

Speeding Tickets and How They Affect Auto Insurance Rates
By Michelle Burton

Believe it or not, having just one speeding ticket on your driving record can affect your auto insurance rates. Auto insurance companies determine whether or not you are a high risk driver or a low risk by considering everything from age and gender to credit history and driving record. To insurance companies, speeding tickets translates to “reckless driver.” This means that to insurance companies, you are more likely to be involved in an accident than most other drivers. The National Highway Traffic Safety Administration (NHTSA) supports this theory. According to the NHTSA, speeding is cited as a factor in one-third of all accident-related fatalities. Because of this, federal regulators are cracking down. In addition to high insurance rates, speeding tickets can cost you hundreds in fines and surcharges of as much a $30 a pop.

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