Auto Insurance Laws About Increasing Rates for Speeding Tickets
Driving is a privilege and not a right. Therefore, violating the laws concerning driving a car---including speed limits---can seriously affect your driving privileges and your ability to obtain reasonably priced auto insurance. Understanding auto insurance laws about increasing insurance rates for speeding tickets is an important consideration for any responsible driver.
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Significance
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Although there are other more serious driving infractions, speeding results in fines and other potential penalties. Additionally, insurance companies take a dim view of speeding citations. The laws in all states in the United States permit an automobile insurance company to increase premium rates when a driver is caught speeding. The law also permits an insurance company to elect not to renew an insured's policy based on speeding infractions.
A solitary conviction of speeding may have little to no impact on car insurance rates. However, more than one citation---particularly in any given year---will cause premium rates to increase. In the alternative, a car insurance company can decide not to renew a policy of a driver with more than one infraction.
Time Frame
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All states maintain convictions for speeding on a person's driving record for a specific period of time. Most states keep a record of speeding convictions for a period of three years. Some states maintain speeding convictions on a driver's record for a longer period of time. The laws on driving records vary from state to state. The department of motor vehicles in your state is able to provide you with more specific information about driving records.
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Effects
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Under applicable law, a car insurance company is able to take a variety of steps in response to an insured with a speeding conviction. (Again, in most cases a car insurance company will not do anything if a driver has only one speeding conviction.)
A car insurance company can elect not to renew a driver, can raise premium rates, or can place a surcharge on a driver's policy. A surcharge differs from a premium increase in that it is an additional required payment on top of the standard premium. Moreover, a surcharge is only in place for a specific period of time, usually three to five years.
Keep in mind that if your insurance company elects not to renew your coverage because of speeding, you will have a far more challenging time obtaining insurance from another provider.
Regulation
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Auto insurance laws in all states are overseen and enforced by the insurance commissioner. If you have any questions about auto insurance laws, the insurance commissioner's staff can be of assistance.
In order to obtain contact information for your state's insurance commissioner, contact the National Association of Insurance Commissioners at 816-842-3600.
Expert Insight
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Although an attorney does charge a fee to deal with a driving-related case, you are wise to consider obtaining legal assistance if you have more than a single speeding ticket. An attorney can help you negotiate a settlement of your case that will avoid a new speeding conviction being added to your driving record. Such a settlement will prevent a new speeding ticket from impacting your auto insurance premium rate.
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- Photo Credit Image by Flickr.com, courtesy of Chris Watson
