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Auto Insurance, Speeding Tickets And Other Issues That Affect Costs.

Posted on March 18, 2010
Filed Under Auto Insurance, Auto Repair, Car Auctions, Car Buying, Car Donation, Car Insurance, Car Rental, Car Stereo |

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If you receive a traffic ticket, your auto insurance costs can greatly be affected — especially by moving violations such as speeding and running a red light. How is your insurance affected to your auto insurance costs and is there something you can do about it? Here are some points to consider.

What are the consequences? Car insurers determine rates based on several underwriting factors that affect how much your coverage will cost. The factors that most impact rates are known as “risk.” In other words, the greater risk you are for incurring a loss (making a claim) then they higher the insurer will typically charge.

So what impacts the risk factor? A person’s age, driving habits (such as commuting miles) location and type of vehicle impact how risk is determined. And another major factor is, obviously, if you are a risk of causing an accident because of violating driving laws.

Most states assign a point system to licensed drivers that track if they have been convicted of breaking a traffic law. When you go to buy auto insurance, the car insurance company will review your driving record. If you have these points or violations on your record you may be charged a higher rate or even denied coverage. If your current insurance company finds out about this, during an annual review for example, they may raise your rates.

What are your options? If you received a citation for a moving violation, you have some choices. You can pay the fine, fight it in court or you may be able to get it dropped by attending a traffic school.

By paying the fine that comes with the ticket, the violation will probably appear on your state driving record and could impact your insurance costs.

If you choose to fight the citation, it could be dropped if you win. That would mean no points added to your record. Now if you lose, you’ll still be paying the fine (and any court fees) plus your insurance costs can still go up.

If you don’t want to challenge the ticket in court, you may be able to get it dropped if your state offers a traffic school option. Courses vary from state to state but typically involve a fee and at least a few hours in traffic school. The fee may be as much as the fine for the violation — or less — but if you successfully complete the course you’ll have the citation dropped and no points will show up on your record. Your driving record will remain the same as it was in the eyes of the insurance companies. Sometimes there are limitations to how often you can take a traffic course.

If you can’t take the traffic course and your rates increase, it might be a good idea to get some car insurance quotes from different companies. Rates vary from insurer to insurer and you could find a lower rate just by doing a little shopping around. On the Internet, auto insurance online sites are a good place to start.

Another way to lower your costs is to raise your deductibles.

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