While a speeding ticket may seem like a simple fine, it comes with many unforeseen consequences and costs, such as increases in your insurance. According to Bankrate, “Wisconsin car insurance companies typically raise premiums by 25% after a speeding ticket”. Insurance companies tend to charge higher premiums for ‘riskier drivers’ to make up for the increased likelihood of having to pay out a claim. By getting a speeding ticket, you are more likely to be classified as high-risk and are viewed as more likely to get into an accident.
Auto insurance rates differ depending on a variety of factors according to TMJ-4’s interview with an independent insurance agent in Milwaukee. These factors can include the type of vehicle you drive, your age, credit, marital status, zip code, and, most importantly, your driving record. According to the TMJ-4’s interview, if you receive a speeding ticket, your monthly rate can increase by over $100 for three years. Speeding tickets stay on your record for 5 years. After 3 years the rate begins to slowly decrease until 5 years have passed since you received your ticket.
Comparing Quotes
Insurance companies all have their own way to determine drivers’ risk levels. Therefore, rates may vary from company to company. It is important to receive quotes from multiple companies to ensure you are paying the lowest rate. There is not one company that has the lowest rates for people that have speeding tickets on their record, so it is essential to explore different options to find the best one for you.
Look for discounts
Most insurance companies offer car insurance discounts. Some discounts include loyalty discounts, owning a home, multi-vehicle rewards, and bundling policies. It is important to explore companies’ discounts to save money and offset your increase from receiving a speeding ticket.
Some popular discounts to explore include:
- Student discount: you can earn a discount by maintaining good grades
- Young driver discount: by completing a new driver program through the company you can earn a discount if you are between the ages of 16 and 25
- Defensive driving discount: you can earn a discount by completing an approved defensive driving course
- Low-mileage discount: you can save on your insurance rate if you do not drive very frequently
- Safety feature discounts: if your vehicle has safety features like anti-lock brakes, airbags, and more, you may be eligible for a discount
- Billing discounts: there are also billing discounts available from some companies for paying the premium in full, signing up for automatic payments, or paying online.
When will my insurance increase?
You are not legally obligated to inform your insurance company of your speeding ticket so your rate will increase when your policy is renewed, typically around three months after you receive your ticket. Insurance companies receive your driving report from the Department of Motor Vehicles (DMV), which reflects your increase in high-risk driving behavior, thus leading to your insurance rates increasing.
Hiring an Attorney
By hiring an experienced traffic attorney instead of just paying the fine, your ticket could potentially be reduced or dismissed entirely. You can save yourself a significant amount of money by avoiding a traffic conviction on your record and avoiding insurance premium increases by hiring an attorney.
