I got my first speeding ticket on my way to a sister’s wedding, how will this affect my premium?


A policy holder’s premium has a lot of factors that is all considered by a car insurance company that helps them arrive to the final quote. There is no need for you to panic because as you have mentioned, it is just your first speeding ticket. Companies can be brutal at times (especially to those they consider as “problem drivers”) but most of them are also known to have a soft spot for “first timers”. Although, you can actually feel the impact of your first ticket the moment you are hailed by a police officer. These days, you can be considered lucky if your offense will cost you below a hundred dollars.

Thanks to our government, it has stated rules that says when and why a car insurance company can change or increase a policy holder’s premium rate. More often than not, one speeding ticket won’t hurt one’s premium. There are a lot of companies around and each one differs in their rules when judging premium rates. Others consider the severity of the violation while others opt to have a specific amount they charge for a certain violation.

But if what you are after for is a clear calculation of how rates are raised, here a an answer:

The average auto policy in New York is $1313. If you have a clean driving record then you can expect a cut of 25% off the stated premium. That means less $328. This is to say that a driver with a clean record is at an average paying $985 a year for his policy. But a 2 speeding tickets will remove that discount so the base is increased by 2%. This means a $354 increase in a year. Other companies even surcharge for 3 years making it a whooping $1062 when added up.

This just proves that having a clean driving record takes a driver away from miles of expenditures. But accidents do happen and sometimes, speed is just necessary. What we can do is to be extra careful on the road always to avoid unnecessary additions in our premiums. The times are hard and there is always a way to save our hard-earned money. Although it is a requirement to have car insurance, it is never a requirement to spend all that we have in it. There are ways to save and lower our premium rates. We have the power to do this.