Monday, September 16, 2013

My Son Got a Speeding Ticket – What Now?

That’s an all-too-common comment from parents insuring a teen driver. Most already are pretty outraged at what happened to their policies once they added their son or daughter to it. The prospect of even higher rates really slaps them in the face.

The answer, of course, differs according to the circumstances of the ticket. It also varies from state to state. There will be a fine, most likely, and your son also will have to pay court costs. Some states also impose a surcharge onto speeding tickets.

But the quick answer is that it could affect his – and by extension, your – insurance premiums for the next three years. And by the way, young drivers are grouped as teenagers by most carriers until they hit the age of 23. Typically, the increase can be up to about 25% the first year, then gradually declining and going away if there are no further violations within the three-year period.

What can the teen do about it? Have him check with the clerk of court in the jurisdiction in which he received the ticket. He could be eligible for traffic school or some sort of deferment program. Traffic school could cost your teen a full Saturday – and heaven forbid he’ll be bored by the proceedings – but it could prevent the ticket from affecting your auto insurance. One thing to tell your teen: In most states, he’ll only be allowed to take the course once every 18 months.

How likely is a ticket?

Chances are you’re frustrated with your teen? But you might want to give him a break. More than 100,000 speeding tickets are written every day – about one in six drivers gets a ticket during any particular year.

The average direct cost of a ticket is $150; the average insurance increase over the three-year period is $900. Now consider the other potential cost of speeding: Nearly 40% of teen motor vehicle deaths involve speeding.

One final note: If you’re facing a huge increase in premiums, it might be a good time to shop your auto insurance. Some websites, including this one, offer multiple quotes from A-rated insurance carriers. That can help you get the lowest rate for your coverage. Be sure to ask about any discounts that may be available as well. Again, discounts vary greatly by provider and state.

If nothing works and your premium is set to skyrocket, you could consider increasing the deductible on your policy. Take great caution, however, when you choose this path. It means you’ll have a larger out-of-pocket cost should you have an accident. Make sure you’ll have the cash on hand should something happen.



Source: AutoInsurance

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