Speeding Fines: How They Affect Your Insurance Premiums

In 2007, according to the Insurance Institute for Highway Safety, speeding was a factor in 15 percent of all accidents that involved property damage only, and 26 percent of accidents that involved injuries. Speeding dangerous, leading to more than 1,000 fatalities on American roads each month, and it can also cost you. Speeding fine tickets, which are not cheap to pay in the first place, also negatively impact your driving record, thus leading to higher insurance premiums.

Speeding Tickets on the Rise

Many people do not realize that, as the economy has gotten worse, there has been an increase in the number of speeding tickets issued. So whether you were going five miles per hour over the posted speed limit or 20 miles over, you will find that speeding ticket fines are costly. They can run from as low as $50 up to $800 if you were speeding in a school zone. And it doesn’t stop there. If you receive a ticket, and especially if you receive more than one, you are likely to see a sizeable increase in your monthly insurance premiums.

Keeping Insurance Rates Down

As you are aware, speeding is dangerous. Insurance companies are well aware of this fact and how much money it takes to make repairs, each year, as a result of it. In fact, the National Highway Traffic Safety Administration (NHTSA) estimates that the economic impact of speed-related accidents each year is forty billion.

It is because speeding costs the insurance companies so much that, if you get a speeding ticket, your insurance premiums will go up. Receiving such tickets can make it seem as though you are a risky driver and have higher chances of getting into an accident. Therefore, the insurance company will increase your rates – possibly by as much as 20 percent or more – if you get a speeding ticket. In fact, it could be even higher, depending on the state in which the ticket is issued. Some states, like California have higher speeding fine amounts, as well as insurance premiums. While at first that may not seem like that much, keep in mind that it will remain like that for several years, until the ticket is removed from your driving record.

Saving Money

Avoiding excessive speeds may not only save a life, but may also keep your insurance premiums as much as 20 percent lower. It is in your best interest to adhere to speeding laws and, if you have already gotten speeding ticket fines, try to make sure you don’t get additional ones. Having more than one ticket could cost you thousands in higher insurance premiums, over time.