Hello! I’m Dan Lyles with Lyles Insurance. And in this video, we’re gonna go over car insurance with a speeding ticket on your record, and why shopping around for a lower rate is a must.
The topics we’re gonna cover include speeding and speeding ticket statistics, how auto insurance companies handle speeding tickets very differently, the total extra cost of a speeding ticket (this means what you pay besides the speeding ticket fine). We’re going to go over some other key points that you need to know about, and also explain why shopping around for a lower rate is a must when you have a speeding ticket on your record. And finally, we’re going to show you where to find the best rate.
So first, let’s go over some statistics. Speeding is the number one factor in causing fatal accidents. You may have thought DUI or distracted driving was, but in fact, it is speeding. Nationally, 112,000 speeding tickets are issued each and every day, which is nearly 41 Million tickets a year. And the average fine for a speeding ticket ranges between $115 – 135. But it can be a lot higher than that in some cases, depending on the jurisdiction and circumstances. And according to the USA Today, the average speeding ticket will increase your insurance monthly premium rates by $23 a month.
This chart will give you an approximate cost of how much your insurance will go up as a result of a speeding ticket. The left column shows increments of different amounts. And as I mentioned before, the average cost of a speeding ticket is about $23 extra a month. The second column shows how much extra a year that is. The third column in the highlight shows how much that is over three years, which is how far auto insurance companies usually go back (and some even go back longer). But the vast majority of them go back three years. So you look and see, $23 a month average increase, you’re between an extra $720 – $900 that you’re paying. That’s far more than what the fines are.
It’s very important that you understand how auto insurance companies rate speeding tickets because they all do it very differently from one another. For example, with some companies, it matters how fast you were caught going over the limit, whether the company sets it at 15, 20 or 30 miles an hour over the limit, whatever. They will ding you more severely if you go above that threshold. With other companies it don’t matter (a speeding ticket is a speeding ticket). Also, what’s on your driving record besides the speeding ticket matters. For example, if your record is clean all except the speeding ticket, that’s not going to ding you as bad as somebody who has multiple violations, and gets a speeding ticket. But how much it matters still varies with each company. And companies rate the severity of the speeding ticket much differently than others. With some, they consider it very minor, others it’s more costly. And like I mentioned before, most companies go back only three years on your driving record for speeding tickets. But some go back five years.
Here are some other key points that you need to know. Speeding tickets (like any only violation), if you’ve recently been issued a ticket, you won’t see that increase on your auto insurance premium until your policy expires and renews. So for example, let’s say I have a six-month policy that expires/renews in January. And then, the following month in February, I go out and get a speeding ticket. I won’t see that increase on my premium until my policy expires again in July, and I’ll see the increase on my renewal offer. And likewise, once enough time passes that you hit that three year anniversary date of having a speeding ticket, your rate won’t drop until expiration/renewal period either…. Number 2: Flying under the radar. Many companies do not check driving records every time. It’s because it’s too expensive. So instead, each company has their own way of randomly selecting which drivers they run a motor vehicle report for and which they don’t. As a result, a small percentage of you may get lucky, and the company may not discover your ticket for a little while. And as I said, that’s just a small percentage of you. So if it happens, again, consider yourself lucky!
Number three: Six month policies versus twelve month policies. Most auto insurance companies only offer the six-month policy. However, some do offer the 12 month. And if so, which one should you choose? Well, to make it very simple, if your driving record is completely clean and all drivers on your policy are as well, then it really doesn’t matter. Choose whichever one you like. But if anyone has a ticket or accident on their record, you’re better off going with the six-month policy for reasons I mentioned on the previous screen. And number four: If you’re having a really bad day and get multiple violations from the same incident. For example, let’s say you’ve got a speeding ticket and a seat belt ticket, or a speeding ticket and a DUI, whatever…. Anytime that you have more than one violation from the same incident, the good news is that most companies only take the most severe violation. And that’s all that gets counted against your insurance rate.
So as you have seen how different companies handle speeding tickets very different from one another, it goes without saying how important it is to shop around for the best rate if a speeding ticket has sharply increased your auto insurance premium. I can’t stress this enough!
How do you find the best rate with a speeding ticket or multiple tickets on your record? Your best chance of getting your lowest rate is to quote with as many auto insurance companies as you can. The best way to do that is to simply get a quote from an independent auto insurance agent. And the reason is, they have several companies. And they can take one quote and get you a quote from multiple companies at once. This is far more time efficient than trying to get quotes with one company at a time. That’s a mistake a lot of people make.
And for those of you who live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you would like me to personally run you a quote, I’ll be very happy to do so. I’ve listed my webpage to where you can go on my site and get a quote online. Or if you’d rather just like to get a quote over the phone, I’ve also posted my phone number. Thank you for watching, and have a great day!
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..