How Much will Your Insurance Rate Rise After a Speeding Ticket?

Car insurance is there to help you in the case of a car accident, but the rates are based on risk factors. Getting a speeding ticket is one of the things that will raise your risk, and therefore increase your car insurance bill as well. Speeding puts you more at risk for being involved in a car accident, and makes the road dangerous for others as well. If you receive a speeding ticket, chances are your car insurance will rise, but by how much?

Each car insurance company will have different rates, and your rate will go up also depending on your policy. If this is your first speeding ticket, you may be charged by up to $150 a year. Divided into monthly payments, it may not seem like a lot, but it is still an increase you could have avoided by driving with more caution. The low amount is actually just a slap on the wrist to warn you that you should avoid speeding. Some insurance companies will raise your rate by several hundred dollars a year.

If this is your second speeding ticket, the insurance company will raise your rate by even more. Some companies will penalize you by raising your bill by even higher than the spike after your first speeding ticket. This is to of course discourage you from speeding, which puts you as well as those on the road with you at risk for being involved in an accident.

The real kicker is the price spike after you receive your third speeding ticket. Expect a rate increase of anywhere from $200 to $1000 a year. This is also dependent on whatever risk factors you already have against you.

You may think insurance companies are punishing you from receiving speeding tickets. While the rise in your insurance bill may feel like retribution, it’s actually to encourage you to drive safely. Car insurance companies fight to protect you in the case of an accident, and one of the ways they do this is to help prevent you from being involved in one in the first place. Remember to drive safely and avoid speeding if at all possible.

If you find that your insurance bill is now too high, it is best to talk to an insurance agent who can find ways to lower your bill. Maybe you qualify for accident forgiveness or other discount programs. There are always options for you no matter what your situation is.