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There is no universal policy dictating what will happen to a driver's insurance coverage after he is given a speeding ticket. The primary reason for this is that the type of penalty, as well as the decision to issue a penalty at all, is almost entirely at the discretion of each individual insurance carrier. As a result, it stands to reason that some carriers will be more lenient and others will be more strict. State laws also come into play in the differences among rate hikes and policy changes. In certain states, it is illegal for an insurer to raise a driver's rates after a single speeding ticket.
Another factor that weighs in on outcomes is whether or not an insurance carrier is even aware of its clients' speeding tickets. Insurers must spend money to investigate the driving records of its drivers, so most do not do it frequently. Some carriers may check on its clients' records annually and others may only check after observing a specific type of account activity, such as inquiring into different coverage levels. -
Most insurance carriers offer safe driver discounts that apply to drivers with clean safety and speeding records. These discounts can often exceed 20 percent, making the savings potential substantial. Safe driver discounts are also typically removed as soon as an insurance carrier learns of a speeding ticket being written for one of its clients, resulting in an immediate and noticeable increase in premiums.
Additional hikes in the premium rate may also apply per the policies of each carrier. Some carriers apply a percentage increase to their offending clients, whereas others actually examine the details of each case and determine their action based on the severity of the speeding. Both these rate hikes and removals of safe driver discounts usually last for three years, provided that no other offenses occur during this time period.
In extreme cases, an insurance carrier may refuse to continue insuring a driver under his current policy, instead insisting that the driver purchase a high risk policy. High risk policies typically cost two to three times the price of an ordinary policy. More cautious insurers can even opt to cancel a customer's policy entirely if the offense is bad enough, but state laws prohibit this in some places.
Finally, some insurance carriers base their rate and policy decisions on the number of points lodged against the licenses of their customers. Driver's license points expire with time, and insurers who determine rates this way will usually reduce premiums as point tallies drop. -
The easiest way to make sure that a speeding ticket will not affect insurance policies and rates is to have it plead down to a non-moving violation, such as the kind you might get for parking in front of a fire hydrant. For all but the most serious offenses, most municipalities will gladly plead this down if you hire a lawyer to represent you. It is worth noting, however, that the reason cities are eager to do this is because they usually plea bargain tickets to the most expensive non-moving violation, which can easily cost five times as much as the original offense. So, for example, a driver might receive a speeding ticket with a $50 fine, pay a lawyer $100 to plead it down, and end up paying a $250 fine for the non-moving violation. It may seem like a bad deal at face value, but when insurance premiums may rise by more than 25 percent for three years, it's actually a bargain.
Drivers who pass on this opportunity and see their rates increase as a result of a speeding ticket may still have additional recourse. They can always contact their insurers to inquire about steps they can take to lower their premiums, which may include enrolling in driver safety classes, changing coverage levels or making voluntary safety upgrades to their vehicles.
