What Makes A Speeding Ticket Different?

According to InsWeb.com, Auto Insurance Companies charge more for speeding infractions because of the inherent risk of those drivers. They theorize that speeders are more reckless and more likely to cause accidents in the future. These accidents, of course, then cost the Auto Insurance Company in damages and administrative fees. How to cover this risk? They tack on a surcharge for speeding tickets, hoping that this will offset future expenditures. The extra fee also acts as a deterrent to drivers who might press the gas pedal down a bit too far.

How Long Will I Have To Pay?

Times differ between states, but the range is between 3 to 5 years. The ticket stays on your driving abstract, so the infraction is visible even if you move from New York to Alaska. The Auto Insurance Company figures that this is enough time for irresponsible or reckless drivers to learn better habits and not speed in the future. However, it’s also enough time for other infractions to occur. The first moving violation may only cause a slight rise in Auto Insurance Rates, but subsequent missteps bring steep fees.

How Much Might A Ticket Cost?

In the long run, that $50 ticket can cost a nice chunk of change. With many states adding court surcharges of $250 or more for a moving violation on top of insurance surcharges, it pays to keep it slow. According to MSN Money, “an experienced driver in California with a single-car policy and a good driving record, [pays] the average Auto Insurance Rates statewide for liability, collision and comprehensive coverage, $765 annually. If you were a Prudential Financial customer you’d get a 25 percent good-driver discount and pay only $574. One speeding ticket would mean a roughly 27 percent increase from the base premium…a $207 annual increase, or $621 more over three years.” If this is followed with more tickets, Auto Insurance Rates increase by 40 percent and the Good Driver discount is canceled. Third infractions raise costs up to 60 percent over that original base Auto Insurance Rate. That’s the extra rate paid every year, which adds up to thousands more.

Can I Do Anything About The Surcharge?

There are several actions that drivers can take when faced with a ticket. First, attempt to defend yourself in court. Often, a judge will knock down the infraction to something more minor that will save you money. Avoid simply sending in a check in hopes of skipping traffic court. Going through the process may seem nerve-wracking, but will save dollars in the long run. Second, see if your state offers ticket forgiveness in exchange for traffic school attendance. Traffic school takes place on a weekend for several hours and students are given a certificate at the time of completion that can be turned in to the Auto Insurance Company as proof. The few weekend hours cost nothing next to thousands in surcharges, so explore that option. Third, if the ticket is for a minor moving infraction (going a few miles an hour over the limit), certain states allow dismissal of the ticket if there are no other infractions in the driver’s recent history. Ask the judge or call the court of the municipality in question.

Look for Another Auto Insurance Company

Don’t forget to shop around and see if there’s cheaper coverage out there. Auto Insurance Companies still want your business, even with a few dings on the record. Drivers can often find deals that can chop their bill by a nice amount. Many people have infractions, so don’t feel like you’re trapped with one rate because no other company will take you. Proactive action can save money in the long run.

State laws: The punishments for driving under the influence differ from state to state, but each state will suspend your license from 30 days to one year. To regain your license, you must fill out a SR-22 form to prove that you have Auto Insurance and submit it to a licensing agency. The Auto Insurance Companies is required by law to inform the licensing agency if your insurance expires or is cancelled.

Insurance premiums: You must obtain the SR-22 form from your insurance agency. This informs the agency that you were drinking and driving, and will mark you as a high risk driver. The insurance company will up your Auto Insurance Rates because you will no longer be considered a safe driver. A conviction of a DUI or DWI could result in doubled or tripled premiums. However, there are a few Auto Insurance Companies that deal with high-risk drivers. It is important to note that not all Auto Insurance Companies will provide an SR-22, and upon request will cancel or refuse renewal of your policy. While it varies from state to state, a DUI will most likely remain on your record for at least three years.

Stay safe: Please do not drink and drive. Drinking and driving is idiotic. Not only does it risk your own life and that of others, it will also increase your Auto Insurance Rates, and include possible jail time. No life, yours or that of any other is worth getting into a car when you have been drinking.

Most state laws include harsher penalties for drunk drivers, especially if a child is in the car, someone is injured, you are under 21, or if your blood alcohol level is above a certain percentage. In much of the United States, .08 is considered legally intoxicated, and in 40 states the penalties are doubled if the levels are .15 to .20 or higher.

How to Compare Auto Insurance Rates

Drivers looking to save money on auto their insurance rates must obtain several quotes and compare policies. The internet has made is much easier for drivers to obtain several auto insurance quotes online, so the next step is for the driver to make sure she is getting the best auto insurance rate possible. Here are a few tips on how to compare auto insurance rates.

Compare the coverages. Before you can compare the auto rates you have to make sure that the coverages are the same. Comparing apples and oranges is no way to truly compare auto insurance rates. Make sure the coverages are comparable.

Analyze the deductibles. There is an inverse relationship between the deductible and the your auto insurance rate. The higher the deductible, the lower the rate and visa versa. Therefore, if you compare two policies that have the same annual premium but one has a higher deductible, the policy with the higher deductible is charging a higher rate.

Research the insurance companies financial standings. A very low auto insurance rate from an insurance company that is not financially sound, is tantamount to potentially paying your own an insurance claim. You want an auto insurance company that is financial stable and is going to be around when you need them.

Review of the underwriting basis.Auto Insurance companies base the auto insurance rate based on things like driving record, years driving, marital status, age of driver, vehicle information and a host of other criteria. Make sure that he underwriting information for each policy included in the comparison is the same. Incorrect underwriting information may inflate your auto insurance rate.

Review the premium payment options. While this does not directly affect your auto insurance rate, it does affect your cash flow. Some insurance companies allow policyholders to pay their premier monthly while others quarterly and others semi annually. Depending on your cash flow, you may want to select an insurance company that offers monthly premium payment. Find out, however, if there is a charge for paying monthly (or a discount for paying upfront).

Consider the insurance companies accessibility. Having a low auto insurance rate is great for the pocketbook but if you are unable to access the claims department or the underwriting department when you need them, then selecting the lowest rate might not be the best solution. Many insurance companies allow policyholders to add and delete vehicles and order auto ID cards over the Internet. If such features are important to you, factor that into your comparison.