How long does a ticket affect insurance rates?

What is an auto insurance surcharge for a traffic ticket?

An auto insurance surcharge is an increase in premiums that is added to your base car insurance premium after you get a traffic ticket. The amount of the surcharge depends on the type of ticket.

The cost will also depend on the insurance company, as each insurance company determines what it will charge for specific tickets. Some charge much more that others for a speeding ticket, for example.

When does someone get an auto insurance surcharge?

An insurance surcharge is applied when a driver does something that increases risk for the insurance company. This includes tickets and other violations such as a DUI and at-fault accidents.

Surcharges appear on the first renewal after the incident occurs and generally last for three years; the amount of the surcharge may decrease over time if no additional violations occur.

When do insurance companies increase rates for a ticket?

Your insurance company won't increase your rates mid-term, but will add the surcharge when the policy renews, which is usually when your driving record is run as rates are re-calculated for the coming term.

John Foster, vice president of underwriting operations at Penn National Insurance in Harrisburg, PA, says the start of that three-year period may be based upon the date of occurrence or conviction. 

“It is also worth noting that some state laws -- for example, Pennsylvania -- do not permit surcharges for minor violations and only allow them for major traffic offenses,” Foster says.

How long does a ticket affect auto insurance rates?

On average, a ticket surcharge stays on your policy for three years.

Foster says the surcharge percentage generally stays the same every year and won't increase or compound. Some companies, including Penn National, reduce the surcharge percentage each year as the violation ages.

Bryan Cook, a Whitinsville, MA-based senior assistant vice president with Amica Mutual Insurance Co., says that how long an infraction stays on your driving record doesn't impact the length of time you must pay a surcharge.

While insurance companies must comply with state laws governing car insurance rates, Cook says Amica generally adds a surcharge for a ticket for three years after the ticket was issued.

Again, because the company won't change rates mid-term, you can expect to pay the surcharge until the next renewal after the ticket comes off. Although it can seem unfair to be charged after the ticket falls off, it's really still the same time period, since the charge didn't start until the renewal after you got the ticket. To get the charge off right away, you can start shopping around for a new insurance policy when the ticket comes off your record.

How much do insurance rates increase after a ticket by company?

While state laws may govern whether a surcharge can be applied and how long it might last, insurance companies determine how much they will increase your rates for each type of ticket.

The differences in car insurance rate increases from company to company can be very large. Some companies might not choose to penalize you for a small offense, even if state law allows it.

For example, McChristian notes that some insurance companies give a “free pass” to a long-time policyholder who maintained a good driving record prior to a minor traffic infraction.

"In this case, you wouldn’t see a rate increase at all," she says.

Other companies may place a surcharge that lasts for just one year. "Then, that charge drops off if nothing else appears on your record," McChristian says.

Take a look at the table below to compare car insurance premium increases by company for common tickets.

You'll see that the car insurance increase for a ticket, in this case speeding, varies significantly among carriers.

Stack up a few tickets and you run the risk of needing high-risk auto insurance.

How to save on auto insurance with a ticket on your record

There are ways to save on car insurance, despite a less-than-perfect driving record:

• Understanding how to compare auto insurance can help you find the most affordable policy, regardless of your driving history.
• Find out if you qualify for a low-mileage discount.
• You can take a defensive driving course, which may reduce the points on your license and may qualify you for a discount on some coverages.
• Check with your agent to see if you qualify for any discounts, such as those for anti-theft devices or for driving an electric or hybrid car.

If you decide to shop for a new auto insurance policy during the period of the surcharge, your new car insurance company will apply a surcharge to your premiums until the surcharge period ends, in accordance with state regulations.

"The surcharge period is generally established by state laws. So, for example, if you had a reckless driving ticket from an accident in December 2008, typically your surcharge would not fall off until January 2012," says Cook. "Your new insurance company couldn't extend the surcharge period because they are usually regulated by state laws."

Foster says that the surcharge period will be based on when the violation occurred, so that if you switch insurance companies two years after a ticket was issued, your new company can only apply a surcharge for one year. After that, you will return to regular auto insurance premiums. However, depending on the severity of your driving infraction, you may have trouble acquiring new car insurance.

"While surcharges are generally limited to only a three-year period, some carriers may evaluate tickets on your driving record beyond three years -- especially major convictions -- when determining new applicant eligibility or acceptance," says Foster. "For instance, while companies may not surcharge a person for a ticket four years ago, they may decline or refuse to accept a new applicant for that traffic ticket."

Helpful auto insurance tools and calculators

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