Can a speeding ticket increase your car insurance premium? The answer is yes. However, if it is the first ticket you’ve ever received, it may have no impact on your car insurance rates what-so-ever. Whether it does, doesn’t and to what degree depends both on which state you live in and what your insurance company’s policies are for handling speeding tickets.
Some states have regulations determining when insurance companies can increase a policy holder’s premium. Many states do not allow a rate increase after just one speeding ticket, while other states do. If you live in a state that does allow a rate increase from just one speeding ticket, chances are you will see a raise in your premium as a result of the speeding ticket.
Insurance companies also have very different ways of handling speeding tickets. Some companies will raise your premium according to the severity of the violation and others choose the simpler method of raising your premium a standard amount per violation.
Most insurance companies offer a discount if you have a completely clean driving record. Such a discount is usually a 25% savings which can add up to as much as $350 per year, so there is certainly a substantial financial incentive not so speed.
However, do not forget the most important reasons for respecting speed limits. Front and foremost is that driving at or below the recommended speed limit decreases the chance of an accident happening and also decreases the severity of an accident should one occur. Beyond the injuries and inconveniences having a car accident creates, being involved in an auto accident is also the best way to ensure you will be paying high insurance premiums for most of the rest of your life.
So you can see that being aware of the posted speed limits and following them is well worth the effort; both for your piece of mind and for your wallet.