Does a speeding ticket affect your insurance?

Typically, you won't see the car insurance rate increase for speeding tickets or other traffic violations until your policy is up for renewal. That's generally when insurance companies review your driving record and adjust the pricing of your policy, says Penny Gusner, consumer analyst for Insurance.com.

The look-back period differs by state and by company.

You should expect, at minimum, to be rated on violations such as speeding for the last three years. Some companies go back to the incident date, and others go back to the day of conviction.

Many companies will look back five or even 10 years for major violations, such as a DUI. For instance, in California insurers aren’t allowed to offer a good driver discount until 10 years have passed after a DUI violation.

And, just as a violation doesn’t raise your rates until your insurer sees the offense on your motor vehicle record, the surcharge won’t stop immediately when a violation falls off your record. You will have to wait until the next policy period when your insurer reviews your record.

Expect it to show up on your record.

Most states have reciprocal agreements that automatically share information on citations. The Driver’s License Compact has been signed by 45 states and Washington, D.C. Georgia, Massachusetts, Michigan, Tennessee and Wisconsin are not members, but they share and receive information just the same.

If your driving privileges are suspended in a state you are visiting, your home state typically will suspend your license as well.

Some states may not assign driver’s license points to out-of-state convictions, especially minor ones. But insurance companies will rate you on a violation no matter where it occurred if it appears on your motor vehicle record and is considered a surchargeable offense.

Parking tickets are considered non-moving violations and pose little risk for insurance companies. As a result, many insurers do not increase car insurance rates due to parking tickets and other non-moving violations. However, this varies by insurer and state.

If you’ve been cited for one of the infractions on our list, do not assume that you are doomed to paying much higher rates.

Each insurance company assesses risk differently. So, an offense that causes your rates to soar at one insurance company might have a much smaller impact than another. Some won’t raise your rates after a single minor violation. Others will. That's why we recommend shopping with multiple carriers before buying a policy, and even after a ticket or accident.

“Because insurers take different approaches, it provides consumers with choices,” says Jeffrey Brewer, vice president of public affairs for the Property Casualty Insurers Association of America.

In addition to comparing car insurance quotes, Gusner offers several tips for lowering your car insurance rate. These pointers can help you save money if you recently got a ticket – or even if you have not.

They include:

• Keep your driving record accident- and ticket-free. Perhaps the best way to keep rates low is to maintain a solid history of good driving.
• Raise your deductible. Paying a higher deductible often results in lower premium costs. For example, III says raising your deductible from $200 to $500 could trim your collision and comprehensive insurance costs by up to 30%.
• Build a strong credit history. Insurance companies used credit-based insurance scores to determine how much to charge you for auto insurance. So, developing good spending habits – such as avoiding debt and paying bills on time – can lower your insurance costs.
• Reduce coverage on older cars. Consider dropping comprehensive and collision coverage once your car’s value has dropped to less than 10 times the cost of the premium.
• Look for additional discounts. Insurance companies often offer many other ways to cut costs. For example, your premium might fall if you take a defensive driving course or if you drive relatively few miles each year. Ask your insurer about the discounts it offers.
• Take a defensive driving class. A defensive driving class, even taken after the fact, can remove points from your motor vehicle record, in some cases. While it cannot erase a conviction from your insurance company’s calculations, the class might bring a discount that softens the blow from the surcharge.