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Q

How much will a speeding ticket affect the rate of a minor?


A

There is no clear cut answer to your question of how much a speeding ticket (or another moving violation conviction) will affect a minor's car insurance rates. It really depends upon the car insurance company's rating system with which the teenager has his insurance with and state laws governing the automobile insurance companies.

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

Traffic tickets in general can change a person's insurance rates a little, a lot, or not at all, depending on various factors. Typically if one has been driving for a long time and had the same car insurance company for many years a minor traffic violation may not affect their premium at all, it may have them lose a good driver discount but not receive a surcharge. Teens however,do not have a long driving history and are not typically given the breaks that an older experienced driver is.

Minors that just obtained their license lack real driving experience. Without years of experience to make them confident and mature drivers, young adults are more likely to have car accidents. Car insurance companies know this (statistics prove it) and so auto insurance rates for minors are already higher to compensate for the additional risk a new driver represents.

Beyond your own car insurance company's rating system there are state laws in place that govern when and why auto insurers can change policyholders' premiums. In some states auto insurance companies are not allowed to raise your rates after just one moving violation conviction. So if the minor is in such a state then one minor speeding ticket on their motor vehicle record (MVR) would not be enough for an insurance company to be able to raise their rates.

We do not have specific 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, a conviction for 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 Texas auto insurance policy costs $1326 a year. If you have a clean driving record then most Texas companies offer a discount. That discount is typically a 25% savings ($331). So, using these averages,a driver with a clean driving record is paying $995 a year for car insurance. One speeding ticket would remove that good driver discount and increase the base rate by 2%. That is a $358 increase a year, or $1074 over 3 years (companies usually raise rates/surcharge for 3 years).

Because teenage drivers have less driving experience and statistically are shown to be more likely to engage in risky behavior when behind the wheel their rates are already high. Trying to keep a clean driving record can help minors keep their rates lower and also asking for discounts such as a good student discount if they qualify. With one speeding ticket it may raise their rates or keep their rates the same but if a second ticket is received the rates will go up. Again there is not base amount that all car insurance companies use to raise rates for a minor with violations on their driving record but in general premiums may be affected anywhere from 20 to 40 percent, if rates in your state do go up for one moving violation conviction.

You can contact 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.

If rates go up too much for the minor driver it could be time for him and his parents to shop around for more affordable car insurance. CarInsurance.com can help you get quick quotes; even with violations on your driving record we can help you check car insurance prices and find you the best car insurance for your situation.


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