How Insurance Companies Learn About Speeding Tickets

Did you know that the more speeding tickets you have, the more you have to pay for insurance? But how do insurance companies find out about speeding tickets? Why do they affect your insurance premiums that much? Here we’ll investigate these popular questions that are being asked by many. Of course, I’ll provide you with some tips to reduce its effects on your premiums. Let’s get straight into it.

First of All: Why Do These Speeding Tickets Affect Insurance Premiums?

According to the statistics, people who drive faster than allowed can cause more accidents than people who obey the rules and limitations. According to the Department of Transportation, there is a direct correlation between the speed and the chance of an accident happening. Also, the severity of accidents is quite higher. For every 10 mph of speed, the risk of dying basically doubles. So if you drive at 60 mph, you are four times more likely to die or kill someone than someone going at 40 mph.

These are all risk factors, and all insurance companies calculate their insurance premiums based on risk factors. Car insurance companies make money on the assumption that the people they buy insurance do not need the money they will get from this insurance by not having an accident. So it wouldn’t be wise to insure a driver who is constantly breaking the rules by speeding and putting their and other people’s lives at risk. 

How Insurance Companies Learn About Speeding Tickets2

But I Didn’t Declare Any Speeding Tickets, How Do They Know?

Information is money for insurance companies. They need to know who they are insuring to know if they can make money out of them. As I said before, you wouldn’t bet on a losing horse, would you? This is the same for the insurance companies. They gather any and every piece of information that they can regarding your insurance topic. In this case, it is your traffic history. 

When it comes to traffic tickets that you did not declare, they get that information from the motor vehicle report (MVR). Your entire violation history is recorded, and it can be accessed by nearly all of the insurance companies in the market. Are you convicted for something you did when you were driving? It is there. You got a parking ticket while you were “waiting for a friend,” it is there.  And obviously, your speeding ticket is there. And the sad thing about it is that you cannot do anything to hide those records from the insurance companies. 

“Aw Man… What Can I Do to Get Cheaper Premiums?” Well, Hear Me Out…

A speeding ticket once in a while is not the end of the world, don’t worry. There are several things you can do to get a good deal. 

First, DO NOT SPEED. Are you really okay with the fact that you can die or kill someone for going somewhere a couple of minutes earlier? Take a look at the statistics. You might get away with a ticket here and a little bump there, but when you are charged with vehicular manslaughter and spend years in jail, you’d wish that you were going slower. 

Anyway, back to the topic. You might take a defensive driving course. Insurance companies usually value such things as they lower the risk of an accident. You’ll have to pay for the course, though. Still, it will probably reduce the premiums on your insurance, and it is a hella cool thing to say, “I took a defensive driving course.” 

You can also try to change an insurer. Some insurance companies offer cheaper premiums for new customers. You can compare and contrast prices and pick the best option for yourself. If you don’t want to change your insurer, you can reassess your coverage. Some coverage types are cheaper than others, so you can save maybe some money off of your deal. 

To Sum Up:

A speeding ticket is one of many things that can affect your premiums when you try to buy insurance. As insurance companies calculate your premiums based on your risk factors, it is no surprise that you pay more if you are a reckless driver. To remedy those higher premiums, you can try to be a good driver, take advanced driving classes, search for discounts and other deals, and reassess your coverage. On the other hand, it is always better to have expensive insurance than to have no insurance at all. 

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Betty Ligmart

Content Editor Hello, my name is Betty, and I am a content editor. My passion lies in creating high-quality content that informs, engages, and inspires my readers. As a finance journalist, I cover a wide range of topics, including cryptocurrencies, which I believe have the potential to disrupt traditional financial systems. I strive to deliver accurate and insightful reporting that helps my readers navigate the complex world of finance. In addition to my work as a journalist, I'm also a content lead and editor, responsible for overseeing the creation of content across a variety of platforms. I enjoy working with writers and content creators to develop compelling stories that resonate with our audience.

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