Insurance Q&A: “How do insurance companies find out about speeding tickets?”
First thing first. Slow down. Statistics show that “speeders” typically have more accidents and that “speed” is a significant factor in how severe a particular accident can be.
Additionally, car insurance companies charge higher insurance premiums for those of us who have one or more speeding tickets. But you knew that already.
You’re here because you want to know how they knew about the ticket(s) in the first place.
This is Going Down on Your Permanent Record
Information is golden to insurance companies. There are several reports available to insurers that detail certain aspects of our past.
When it comes to finding out about speeding tickets, the motor vehicle record (MVR) is the report dejour for insurers.
Your entire driving violation history (not just speeding tickets) is kept on record and available at the click of a button to every insurance company who subscribes to the service.
Once you’re convicted of the offense in court, the ticket shows up on the report. There’s no way around it.
Your MVR is “run” when you apply for new coverage and when your auto insurance policy renews.
*Your premium will not increase mid-term if you get a ticket after your policy is issued. However, you can expect to see a premium increase at your six or 12-month renewal.
Insurers may also deny coverage or non-renew your policy if this isn’t your first or second speeding ticket.
What Else Do Insurers Keep Track Of?
You can expect to have your insurance claims history reviewed via a C.L.U.E. report, your payment history reviewed via your insurance score, and in some cases, your vehicle’s history reviewed via a CARFAX report.
Additionally, some auto insurers review a “household member” report as part of your application in order to ensure they are charging premium for everyone who lives in your home (or excluding them)…even those family members you forgot to mention.
[Do insurance companies report accidents to the DMV?]
The Times…They Are a Changin’
Back in the day, everyone paid about the same for an auto insurance policy. In the ever increasing quest to lower premiums to attract customers, insurers are segmenting us into smaller and smaller groups.
The more accurately we’re segmented, the more appropriate the premium we’re charged.
Instead of everyone paying $100 per month, the “best of us” pay $50 and the “worst of us” pay $150. If you’re in the “best” group, you’re probably all for this trend.
It’s really about attracting the right clients and everyone paying their “fair” share. Those of us with higher odds of filing a claim will pay more for our insurance.
[Top auto insurance companies]
This may sound a lot like other financial products out there. For example, banks and credit card companies charge higher interest rates to those who present the highest statistical odds of not paying balances off on time or at all.
What Are My Options?
A speeding ticket or two are not the end of the world. Simply compare auto insurance quotes online to see how much you should be paying with your new speeding ticket factored in.
Depending on the type of insurer you seek coverage from, you may be able to get a better deal than what you had without the ticket by switching.
Read more: What do insurance companies consider a lot of tickets?
