States have laws governing when and why auto insurers can change policyholders' premiums. In some states insurers are not allowed to raise your rates after just one speeding ticket or other moving violation conviction.

Different auto insurance companies have different practices when it comes to raising premiums as well. Some companies will consider the severity of your violation and raise your rates accordingly; others will raise rates a specific amount per violation.

We do not have specific statistically information on how much a speeding ticket can raise rates for a teenage driver since state laws differ and then within the insurance laws of a given state, insurance companies' rating systems differ. In general though a conviction of a speeding ticket may raise a person's rates anywhere from 20 to 40 percent.

Because there are too many factors to simply say it will be $50 more a year, here is a real example:

The average New York auto insurance policy costs $1313 a year. If you have a clean driving record then most New York companies offer a discount. That discount is typically a 25% savings ($328). So, using these averages a driver with a clean driving record is paying $985 a year for car insurance.

One speeding ticket would remove that discount and increase the base rate by 2%. That is a $354 increase a year, or $1062 over 3 years (companies usually surcharge for 3 years).

As a teen you are already aware of how much insurance costs for new drivers since they are found to be a high risk for an insurer. A speeding ticket then goes to show the insurer that the teenager is even more of a risk since at a higher rate of speed there is a higher possibility the teen if they crash will cause a lot of damage to people or property. Thus the high rates for the teen increase (if state laws and the company's rating system allows) when their insurance company next pulls their motor vehicle record (MVR) and see a speeding violation on it.

To show you how state laws differ here is some information from insurance regulators of different states.

The Louisiana Insurance Commissioner notes that your driving record is one of the main things that your company looks at when deciding how much to charge you for insurance. Your insurance company has the right to charge you extra even if you have only received one moving violation or were involved in just one accident in which you were considered more than 50% “at fault.”

In Ohio their insurance regulator says that your insurance company cannot charge you an additional premium for a single accident that was not your fault or for a single traffic ticket. But the insurance provider likely has the right due to their rating system to increase your premium if you have a second, not-at-fault accident within a policy period.

In Virginia they state that your insurance company can charge an additional premium for a ticket or for an accident that was even partially your fault. This extra charge can last three years.

California Insurance Department states that your premium is partially based on your own driving experience. If you have tickets or at-fault accidents, you will be charged an additional surcharge based on the type of ticket or accident for which you have been cited. The more tickets and accidents you have, the higher your premium.

For the article you are writing for your school paper try contacting your state's insurance regulator to get information on your state's insurance laws as well to find out if they have statistical information such as the state's average insurance increase for one speeding ticket on a teen's driving record.

Keep in mind that for a teen to lower their premium they should:

• Avoid getting tickets.
• Avoid having accidents.
• Not drive a high performance car or a sports car.
• Maintain good grades to qualify for a “good student discount.”
• Maintain good credit.

Comparison shopping is the one of the best ways to save money on auto insurance. Savvy shoppers who keep a clean driving record will be able to find the best insurance deals with good companies.

Another way to save money is by taking larger deductibles and lowering limits; however, make sure that you are not putting yourself in trouble by choosing low limits and high deductibles. Consider a higher deductible for your comprehensive and collision coverages but remember that this is the amount of money you will have to pay out of your pocket if you have a claim so be sure you can afford it.

Auto insurance needs to be a priority in any driver's budget, not an afterthought. Many teens and adults determine how much they can afford for a car payment when buying a car but forget to price out and budget for that car's insurance policy.