How Much do Tickets and Accidents Affect my Insurance Rates

Will an auto accident claim that is my fault affect my rates?

The simple answer is yes. Online comparisons of car insurance rates nationwide for 40-year-old drivers with no accidents as compared with those with an at fault accident show higher rates for those who have had a crash that is their fault. The analysis reviewed in the comparison showed that a relatively minor accident resulting in about $5000 worth of property damage and no injuries can raise rates. The study found that auto insurance rates were more than 50% higher for drivers without at fault accidents. The study also found that in 16 states,  average rates were more than a $1000.00 a year higher for drivers who had caused an accident than those who had not.

What type of rate increase can I expect?

Rate increases vary from state to state as well as from carrier to carrier. Like everything else it is important to compare rates with different companies after you’ve had an accident. It is important to be truthful with the carrier when requesting a quote because they will locate the accident in the database even if you do not tell them that you had the accident.  The state with the lowest increase for an out fault accident was found to be Idaho with an average rate increase of $465 for an at fault accident. And sadly, the state with the highest increase for an at fault accident with an average increase of $1200.00 per year for an at fault accident is Nevada.  

Nevada demerit point system

The Nevada  State department of motor vehicles has an extensive demerit points system. When they receive a conviction notice from the court they automatically enter the offense on your driving record. If your driver’s license address is current with the DMV, you will receive a notice when you have a cumulated between three and 11 points. If you received 12 or more demerit points in a 12 month period in the state of Nevada your driver’s license will be automatically suspended for six months. If that occurs you will be mailed a certified letter before your license is suspended and have the right to ask for hearing.   If this happens to you, it will be important for you to retain counsel to represent you at the hearing. At the Law Offices of Laura Payne Hunt, we charge between $750.00 and $1500.00 to represent clients without a DUI at this hearing. The following is the point system in Nevada which shows the number of the merit points the state has assigned for each offense. If you have a commercial driver’s license there are additional for various offenses. The following is a partial list of traffic violations, listing the demerit points that are assigned to your driving record. 

Reckless Driving8Speeding 
Careless Driving61 – 10 mph over posted limit1
Failure to give information or render aid at the scene of an accident611 – 20 mph over posted limit2
Following too closely421 – 30 mph over posted limit3
Failure to yield right-of-way431 – 40 mph over posted limit4
Passing a school bus when signals are flashing441 mph or more over posted limit5
Hand-held cellphone use or texting
  (2nd and subsequent offenses)
4Prima Facie speed violation or driving too fast for the conditions2
Disobeying a traffic signal or stop sign4
Impeding traffic, driving too slowly2
Failure to dim headlights2
https://dmvnv.com/dlpoints.htm

If you receive a suspension of your driver’s license,  you will then be required to get a document called an SR-22 which is a document indicating proof of financial responsibility for the department of motor vehicles to reinstate your license. This is basically proof of insurance. You have to obtain it directly from your insurance company and most major insurers understand what this document is and why it is required. However, most major insurance also understand that you have to obtain this because you are a high-risk driver and you will have rates that reflect the same.  Once your license has been suspended, you are required to maintain an SR-22 for three years from the day that your license is reinstated regardless of how long your license was suspended. It is important to note that the department of motor vehicles will not notify you when you are eligible to remove the SR-22 filing requirement. Therefore, it is important for you to remember what date your license was suspended on so that you will know when it is no longer required for you to obtain that form.

HOW WILL A SIMPLE SPEEDING TICKTET AFFECT YOUR AUTO INSURANCE RATE?

How much a speeding ticket will impact your auto insurance rates will depend on the amount of coverage you have, your overall driving records and how fast you were going.   The studies referenced below of annual average increases may not be the same as your situation. However, studies on this issue can give you an idea of what type of increase to expect if you receive a ticket.  That is why is always best to do traffic school to have the citation reducing to a non-moving violation if the court or court clerk gives the option

A 2018 analysis conducted by The Zebra (The Zebra is an insurance comparison site with headquarters in Austin, Texas. It compares rates from over 200 insurance carriers.) 

www.thezebra.com ‎  The annual average premium without any speeding tickets was found to be $1,427. They found that the increase after a speeding ticket depends on how fast you were driving when you received a ticket:

  • Six to 10 mph over the limit: $281 (a 20 percent increase)
  • 11 to 15 mph over: $298 (a 21 percent increase)
  • 16 to 20 mph over: $329 (a 23 percent increase)
  • 21 to 25 mph over: $348 (a 24 percent increase)
  • Speeding in a 65 mph zone: $401 (a 28 percent increase) 
  • Speeding in a school zone: $293 (a 21 percent increase)

A 2017 study from NerdWallet  reviewed how rate increases are different state to state.   It found the average annual rate increase for a driver who gets a ticket for going six to 10 mph over the limit was any ware between $54.00 and $617.00.  https://www.nerdwallet.com/insurance/compare-car-insurance-rates    However, both studies assumed that this was the driver’s only ticket. If they had other chargeable offenses on their records, the increases may be higher. 

How long does a speeding ticket affect your insurance?

The good news is that insurance companies won’t penalize you for the ticket forever.  Generally, most insurance companies only look back three to five years for minor violations, including speeding tickets, when accessing rates. Once that time is up, your ticket will not impact your insurance rates.  If you are in a situation where you have a ticket that is about to come off your record, this may be a good time for you to shop around for insurance. It may be time for you to obtain a lower rate. 

It is worth noting that the insurance review period for rate increases is different from a state’s point or demerit system, which determine your driving privileges and whether you can keep your driver’s license. While there’s often overlap in which violations can increase your rates and put points on your driving record, these are two different systems. 

If you have a question about  how a ticket or accident will impact your insurance policy or any type of accident involving a personal injury, whether from a car accident or a slip and fall or any combination of injuries, please don’t hesitate to call The Law Offices of Laura Payne Hunt, PC, and Henderson Injury Attorneys for over 15 years. Please call our office if you or if a loved one is injured.  We can make sure that you receive the care you need and deserve and advise on how to preserve evidence. If you have been in any type of accident and have questions, please don’t hesitate to contact our Henderson and Las Vegas Accident injury offices today. At our office, we are experienced in helping injured victims get the compensation they are entitled to. Insurance companies never have the best interest of the injured person at the top of their priorities.  They want to pay as little on every claim as possible. Having worked for an insurance company as an attorney for 9 years before opening my boutique law firm specializing in helping injured people, I reviewed thousands of auto accident claims and policy provisions.   

          At the Henderson and Las Vegas Accident injury Law Offices of Laura Payne Hunt, PC we are here to help you and your family in the event that accidents and tragedies occur.  For any of your legal needs, do not hesitate to contact our Henderson and Las Vegas Accident injury Henderson offices. The Law Offices of Laura Payne Hunt is a boutique, family owned law firm in Henderson that specializes in helping injured people and the community with legal issues involving auto accidents, wrongful deaths, slip and falls, truck accidents, injuries to children, bicycle accidents, dog bites, and all types of injury claims.  Please do not hesitate to call us anytime you have a legal question or you or a loved one has sustained an injury at 702-450-(HUNT) 4868 and text 24/7 at 702-600-0032.