‘License and Registration, please‘ – words that can spoil the vibe of a well-planned road trip as you cruise along. A speeding ticket anywhere, whether it is in your state or out-of-state, can have severe repercussions on your insurance rates. You might hope that the authorities back home will never find out about your out-of-state speeding ticket. Sorry to burst your bubble; they will hear about your indiscretion, and so will your insurer.
How do out-of-state speeding tickets reach your insurance company?
Most states have interstate reciprocal agreements that require them to share information on convictions for moving violations. The most common is the Driver License Compact (DLC), signed by 45 states plus the District of Columbia. DLC-member states agree to report out-of-state convictions to each other. When a state suspends an out-of-state driver’s license, that driver’s home state is encouraged to do the same. If you receive a DUI while on spring break in Florida and your driver’s license is suspended in that state, your home state can also suspend your license. Georgia, Massachusetts, Michigan, Tennessee, and Wisconsin are not DLC members.
However, receiving a ticket in one of these states does not guarantee that it will not be reported to your home state. Department of motor vehicle representatives in these five states generally notifies an out-of-state driver’s home state. They are also notified if their own drivers received violations in other states as well.
Do speeding tickets affect insurance?
A traffic violation is any state that would make you vulnerable to being stamped as a risky driver. Each insurance company assesses risk differently. In some states, car insurance companies are not allowed to raise your rates after just one speeding ticket. In some states, your car insurance company will increase your premium after even one speeding violation.
Some insurers may not increase your rates but take away your good driver discount. Car insurance companies also rate you based on the type of violation you receive. The more serious the offense, the more your premium is likely to increase. Another factor that will affect your rates is how often your car insurer checks your DMV record. Some insurers check every time you renew your policy, while others check only once every one or two years.
Tips to lower your car insurance premiums
There are a few tips for lowering your car insurance rate. The pointers below can help you save money if you have got a ticket or even if you have not.
- Increase your deductible – Paying a higher deductible often results in lower premium costs.
- Build a strong credit history – Insurance companies often use credit-based insurance scores to determine the amount to charge. Developing good spending habits can keep your insurance costs lower.
- The Older the car, the lower the coverage – Reduce the comprehensive and collision coverage once your car’s value has dropped to less than 10 times the cost of the premium.
- Take a defensive driving class – In some cases, a defensive driving class can remove your motor vehicle record points. 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.
- Keep your driving clean – The best way to keep rates low is to maintain a solid history of good driving.