YOU ASK:

How does a speeding ticket affect your auto insurance rates?

WE ANSWER:

Here's a simple equation:

Speeding = More risk for accident = Higher auto insurance rates.

Your driving history is one of the important factors when the auto insurance company sets your rates.

But don't fret just yet. One strike (speeding ticket) may not be substantial enough to warrant a hit on your auto insurance rates. If you have received just one speeding ticket in the last three years, this will not affect your driving record. Now, getting a second speeding ticket or traffic violation may put a flag up your driving record.

A mark such as a speeding ticket or traffic violation will remain in your record for three years, unless you retain an attorney in an effort to have that record cleaned.

State Laws

There are some states that allow the deferment of tickets to be recorded in your driving record if you agree to pay twice the fine prescribed in your ticket. Once you opt for deferred adjudication, you need to be careful not to get a ticket for the next 6 to 12 months. Otherwise, the deferred speeding ticket will be listed in your driving record.

There are also some states that don't allow insurance companies to increase premium rates on the basis of just one speeding ticket. This will actually depend on the laws of the state where you are a resident.

Driving School

You can prevent these tickets from causing a bad mark if you allow yourself to undergo driver's training or traffic school. However, driver's training also has its limit - especially if you were caught driving way above the prescribed speed limit.

Insurance Company Policies

It also depends on how the insurance company treats driving limits. It will also depend on how regularly the insurance company checks your driving record.

Insurance companies will differ in how they use speeding tickets and traffic violations to compute for premium rates. The bad news is that if the insurance company thinks that you more than your fair share of points, they may decide to either refuse renewal of your policy or worse, to cancel the policy outright.

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