Got a Ticket? How Tickets Affect Your Car Insurance Rates

There are many factors taken into consideration by auto insurance companies when calculating a rate for each individual. Every insurance company has its own calculations. Factors such as age and type of vehicle, garaging location and driver age are well-known factors. However, many people are unclear about how various types of tickets may or may not affect their car insurance rate.

For insurance companies, it’s all about risk. Your rate will largely depend on your driving record. If you receive tickets frequently or for major types of violations, this indicates to the insurance company that you are a risky driver. They may be willing to still insure you but you will have to pay a higher premium in order for them to cover that risk.

Parking Tickets versus Major Violations

Parking tickets and other more serious types of tickets, such as moving violations, are very different issues when it comes to auto insurance. Car insurance companies do not take parking tickets into account when calculating the best car insurance rate for you. Insurance companies do not receive notice of parking tickets, but are notified of moving violations and other offenses.

If you do receive a moving violation, each company will treat it differently. The insurance companies have access to your state driving record. Most states use a point system and assign points for each type of violation. Insurance companies will use this system to determine the amount of risk they will likely be taking on to provide you with auto insurance.

Will You Receive a Rate Hike?

If you have been with your company for a long time and have not had a strong history of violations, your company may choose to forego a rate hike if you receive a minor ticket. However, if you are a young person and you receive a serious speeding ticket, well over the limit, you will probably see a pretty significant rate hike. The insurance company now sees you as a greater risk in the future.

Some tickets are guaranteed to increase you rate:

  • DUI
  • Driving with a suspended license
  • Driving without car insurance
  • Multiple violations in a certain time period, generally 3 years

Receiving a ticket is no fun at all. The repercussions can be quite costly. Not only must you pay the ticket, but you may have to dish out money for a traffic safety course in addition to possible increases to your yearly insurance bill.

Your best bet is to drive safely and responsibly to avoid run-ins with the law and costly insurance rate increases.