How Much Will My Car Insurance Rates Rise After A Speeding Ticket?

The answer to this question depends upon many factors. The most important is how many other moving violations you've had in the past. Each company is different when it comes to how much they will increase your premium after a ticket. This is dependent upon your state's laws and their surcharge schedule. The surcharge schedule is the "rosetta stone" of car insurance rates and how certain events affect your rate.

Surcharge Schedule

All car insurance companies use whats called a "surcharge schedule". This surcharge schedule details exactly how much your premium will be affected by various factors such as points on your license, accidents, etc. Many states mandate that car insurance companies give you their surcharge schedule when you buy a policy. Surcharges vary by state and insurance company. Some car insurance companies focus more on moving violations and points while others may only focus on chargeable accidents.

How much will my premium rise on average after a speeding ticket?

This depends upon the insurance company and their surcharge schedule. Some companies will let you off with a free one if it's your first and you don't have a history of moving violations. The look back period for most companies is 36 months. After 36 months, any violations will not be considered. Most companies also divide violations into "Major" and "Minor" depending upon the severity of the violations.

For example, a simple speeding ticket under 15 mph over the speed limit would typically be considered as a minor violation. If you were driving at a much greater speed and reckless driving or endangerment is involved, then it may be considered a major violation.

Allstate (as per it's 2010 surcharge schedule in Minnesota) considers Major violations to be:

Any other violation would be considered "Minor" violation.

Example of a car insurance company surcharge schedule and how a ticket affects your rates

An example of a surcharge schedule is this one (this is a pdf file) from Allstate to it's Minnesota policy holders effective 8/2/2010. If you go to page 3, you'll see the table that lists how Allstate will increase your premium following each minor moving violation as a Minnesota based policy holder. Let's say you've just had your first speeding ticket as a Minnesota policy holder and you don't have any other moving violations during the past 36 months. You look at the first table on page 3 on the left hand side and choose 1 under minor violations. You'll see factors of 1.06 under all headings. Each of the headings refers to how much each part of your policy will be affected: Bodily Injury (AA), Property Damage (BB), Personal Injury Protection (VA) or Collision (DD). A number of 1.06 means that Allstate will increase your premium by 6% after your first ticket.

If you get another ticket within a 36 month period , then Allstate will increase the premium to Minnesota policy holders by another 1.21 or 21%! If you get just 1 Major violation with Allstate in Minnesota, as listed above, then your rates according to their schedule would rise by 50-70%!

As you can see, it really pays to review surcharge schedules for various companies before you buy a policy from them. When shopping for car insurance, Insist of reviewing the surcharge schedule prior to purchasing a policy from them.

Where can I find the best deal after a few tickets?

If your rates have gone up significantly after a ticket or two, then you should definately look around to see if you can find another insurance company that has lower moving violation surcharge factors. If you are shopping for car insurance and want to compare rates, then we suggest that you compare policies and rates from several insurers. We recommend Insureme who allows you to compare several rates from dozens of major, highly rated insurers such as Met Life, Allstate, AIG, and more. Be sure to get a copy of their surcharge schedule to review before buying!

This should not be considered financial advice which can only be given by a qualifed financial professional. We suggest you consult with a qualified financial planner and/or insurance professional who is most qualified to consult with you regarding policy decisions. Many factors are involved in your policy premium some of which may not be mentioned in this article. We are an affiliate of the Bankrate Insurance Network.

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