Can a speeding ticket cancel my car insurance?
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UPDATED: Mar 13, 2020
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Auto insurance premiums are determined by a number of different factors. Essentially, car insurance companies determine the cost of premiums by assessing a driver’s risk of being involved in an accident. High-risk drivers are those who have been involved in accidents in the past or who engage in risky driving behaviors. A poor driving history makes a person more likely to be involved in an auto accident, which in turn costs the insurance company. In order to compensate for the potential claim, car insurance companies charge more to people who are deemed to be high risk.
Willy policy get cancelled from a speeding ticket?
Some car insurance companies will cancel a customer’s policy if that customer becomes too high of a risk to insure. This may happen after a customer has been involved in an accident or if he engages in illegal activity with his vehicle. Other reasons that a driver might have his insurance policy canceled include failure to pay insurance premiums, engaging in insurance fraud, receiving a DUI conviction or facing a suspended driver’s license.
It’s not impossible to have an auto insurance policy canceled due to traffic violations, but it’s unlikely that any single speeding ticket would lead to a policy cancellation. A history of repeated violations could certainly lead to a policy cancellation, however, and may be an indication of a high risk driver.
What are Speeding Tickets?
When a road is built, it is assessed to determine the optimal speed that it can be traveled at. Speed limits are not assigned arbitrarily; rather, the limit is decided by the road’s width, the number of bumps and curves it has, how many drivers might be on it at any given time and what type of buildings lie along the side of the road. As a rule, the speed limit is the fastest a person can safely travel on a roadway.
Driving above the speed limit is dangerous. Not only do drivers have a difficult time maintaining control at high speeds, they may not have the reaction time necessary to avoid road hazards. The road itself may pose hazards for high-speed driving; for example, driving too quickly on dirt or gravel can cause the vehicle to lose traction and slide off the road or even flip over.
In order to enforce the speed limit, the local police force will monitor driving speeds and write citations to drivers who surpass the speed limit. These citations must be paid within a certain amount of time or the driver’s license may be suspended or the driver could even be arrested.
Once a speeding ticket is received, it goes against the driver’s public record. Any insurance company will be able to see how many speeding tickets a driver has, and this knowledge will play a role in determining the cost of auto insurance for a new driver. Drivers with several speeding tickets may be habitual speeders, and that increases the driver’s likelihood of being involved in a collision.
What are Points on a License?
Most states operate on a point system and many car insurance companies associate the number of points on your driving record with a risk formula. Driving infractions such as accidents, citations, DUI convictions or other concerns translate into a certain number of points against a driver’s history. After enough points are accrued, the policy’s premiums will be raised. The policy may be canceled after reaching a certain point threshold.
The actual value of any particular infraction varies from one car insurance company to the next. Some companies base the weight of an infraction on its severity; for example, a very bad car accident may be worth more than one that was less expensive. Other companies are primarily interested in tracking the quantity of infractions. Drivers who are involved in several minor accidents may pay higher premiums than drivers with only one major accident on record, for example.
The best way to guarantee that you maintain low premiums is to obey traffic laws and drive safely at all times. By avoiding auto accidents, you can earn affordable car insurance. If you do happen to get a speeding ticket, your rates shouldn’t be too badly affected if you have an otherwise clean driving record.
Fortunately, car insurance is a very competitive market. Even if one insurance company denies you coverage or charges a very high premium, another company will most likely be able to provide affordable insurance. You can search online for a free quote if you’re interested in switching auto insurance companies.