Getting a speeding ticket is an unpleasant experience for all drivers. A speeding ticket can also lead to some serious financial consequences. Not only is the fine for the ticket expensive, but it can also increase the cost of your annual auto insurance premiums.

In this article, we’ll examine how a speeding ticket can influence your auto insurance rates and what steps you can take to try and mitigate the damage.

Increased Insurance Premiums

When you receive a speeding ticket, your insurance provider will likely view you as a higher risk. There are many factors that impact your auto insurance premiums, which include your age, how much you use your car, where you live and work, the type of car you drive, your credit score and history, and your driving record.

If you have a clean driving record, meaning no accidents or speeding tickets, you generally receive more favorable insurance rates. If your driving record is plagued with violations, which include speeding tickets, you may be looking at higher premiums.

How Much Can Rates Increase?

After receiving a speeding ticket, the amount your auto insurance premium increases depends on several factors. Those factors include, but are not limited to, the following:

Severity of Speeding Offense: A minor infraction (e.g., 5-10 mph over the speed limit) may lead to a modest increase, while a major violation (e.g., 30 mph or more over) can cause a steeper hike. The severity of the offense also depends upon the jurisdiction in which you committed the violation and received the ticket.

For example, in the State of Florida, a speeding violation of less than 30 miles per hour over the posted speed limit is a civil infraction, which is considered a noncriminal traffic violation. If you are caught speeding between 30 and 49 miles per hour over the speed limit, the ticket is upgraded to a traffic misdemeanor. If you are speeding 50 or more miles per hour over the posted speed limit, you may be looking at a felony traffic violation. Each ticket has varying fines and consequences and will impact your rate increases differently.

Your Previous Driving History: If this speeding ticket is your first offense, the impact on your driving record and insurance rates may be nominal. However, if you have a history of speeding and other traffic infractions, adding another speeding ticket to your record can be substantial.

For example, this may be your first speeding ticket, but does your record include other non speeding infractions? Suppose you already have a record that could consist of a violation for failing to wear a seatbelt, driving at night without your lights on, failing to yield, making an illegal turn, or failing to stop at a red light. If you have previous violations, the speeding ticket may increase your rate more than if you had a clean driving record.

Location of the Violation & Your Home State: Insurance regulations vary from state to state. Each state has different minimum coverage requirements and other variables impacting rates.

The state insurance regulator in each state will review and approve any insurance rate increases proposed by insurance companies. In some states, the regulator is more inclined to cave to the insurance company and approve a rate increase. All of this impacts how much your auto insurance rate could increase whether or not you receive any speeding tickets or other traffic violations.

Insurance Company Policies: Each insurer has its unique formula for determining rate increases after a speeding violation. In addition, the rate increases also vary from state to state. According to research done by Forbes Advisor, the national average increase for a speeding ticket is a 24% increase. The overall range was anywhere from a 13% to 34% increase in premiums, depending upon which insurance company you used. 

How Long Can You Expect Increased Rates?

In general, a speeding ticket does not impact your insurance rates immediately. It takes some time for the ticket to show up on your motor vehicle record, and the insurance company will review your record near the policy renewal date.

So, if you have a speeding immediately after renewing your policy, you can expect to keep the same monthly rates in the near term. When the policy comes up for renewal, that’s when you’ll see a bump in your rates.

On average, a speeding violation will stay on your record and impact your insurance rates for three to five years, depending on your state and insurance company. During this period, you’ll likely face higher premiums unless you take steps to improve your driving record or find a new insurance company that may give you a reduced rate.

Some Steps to Reduce the Rate Increase

Take a Defensive Driving Course. Many states and insurance companies offer a way to minimize the impact of a speeding ticket through defensive driving courses. Many of these courses can be taken online from the comfort of your own home.

By completing an approved course, you may be able to do one or more of the following:

  • Have the ticket dismissed or downgraded
  • Reduce points on your driving record
  • Prevent an increase in your insurance premiums

These courses typically take a few hours to complete, and while they may not eliminate the rate increase entirely, they can certainly reduce it.

For example, a standard speeding ticket in Florida will add 3 points to your license. If your speeding infraction was less than 30 miles per hour over the limit, Florida offers a 4-hour Basic Driver Improvement (BDI) course. Under Florida Statute 318.14(9), by completing the course, you can reduce the penalty amount by 18%, prevent the 3 points from attaching to your driving record, and result in no insurance rate increases so long as there is no accident connected with the speeding violation.

Find a New Insurance Company. If your current insurer raises your rates significantly after a speeding ticket, it may be worth shopping around for a new policy. Different insurance companies weigh traffic violations differently, and some may offer more lenient terms. Many online service providers will allow you to compare multiple quotes across multiple insurance companies.

Conclusion

A speeding ticket in the U.S. can have lasting consequences beyond the speeding fine itself; however, by understanding how traffic violations impact your insurance rates and how you can mitigate the damage, you can reduce the financial burden.

Remember, the best way to save on insurance is always to drive safely and obey all traffic laws.