Does An Out-Of-State Speeding Ticket Affect My Car Insurance Rates? – Forbes Advisor

Editor’s Note: In The Insurance Sleuth, Jason Metz tracks down answers to your questions about enigmatic insurance topics. Have a question? Send him a message, and if you want to remain anonymous, be sure to choose a fun pseudonym in case we use your question. We will not publish your full name or email address.

Hey, Insurance Sleuth,

I’m on vacation in another state and got a ticket for speeding. Will my home state find out? And if so, does that mean my car insurance rates are going to go up?

— Lead-Footed Tourist

Dear Lead Footed,

I hate to put a damper on your vacation, but you can’t outrun an out-of-state speeding ticket. Your home state is likely to find out and that could impact your car insurance rates.

“States like New York, California and Florida participate in the Driver’s License Compact (DLC), an agreement among 46 states to exchange information on traffic violations,” says Dustyne Bryant, a director at The National Alliance for Insurance Education & Research. “This means that if a driver receives a speeding ticket in another DLC member state, it will likely be reported and reflected on driving records, influencing your insurance premiums.”

Georgia, Maine, Michigan and Wisconsin do not participate in the DLC. But even if your state doesn’t report into to the DLC, that doesn’t mean you’re off the hook.

“Serious violations may be reported to the National Driver Register, which is accessible by all states,” says Bryant.

Speeding Ticket Sticker Shock

“One speeding violation could increase car insurance rates by 25% or more,” says Bryant. “Minor violations, such as five to 10 miles over the limit may result in smaller increases, while major violations like 20 miles over the limit can lead to significant hikes or even result in a car insurance company declining to issue a new auto policy or issuing a non-renewal on an existing policy.”

Unfortunately, the repercussions of that lead foot will likely last much longer than your vacation. A speeding ticket typically affects your car insurance rates for three to five years, Bryant notes.

Heed the Speed (and Pay Your Fine)

“It’s easy to find yourself speeding in unfamiliar areas,” says Bryant. “There are simply so many new sights, sounds and traffic patterns to distract an out-of-state driver.”

Bryant adds that you can utilize tools like a GPS app that will help you identify speed limits or provide flashing notifications if you go over the limit. Many newer cars are equipped with speed limit detection and automation to help you stay within the speed limit. You can also use cruise control on highways to help curtail your heavy foot.

If you do get nabbed for speeding, make sure you pay the fine. Failure to do so could have serious legal ramifications.

“If you get an out-of-state ticket, you’ll want to pay it according to the instructions,” says Kate Terry, CEO and co-founder at Surround Insurance. “If you don’t and it gets reported to your home state DMV, they can suspend your license.”

Terry adds that if a traffic warrant is issued, you can be arrested in your home state.

Seek Forgiveness (or a New Car Insurance Company)

The national average car insurance rate increase after a speeding ticket is nearly $380 per year, according to our analysis. But there are options to mitigate these costs, such as:

• Forgiveness. Some insurers, such as Travelers and Farmers, will “forgive” a minor traffic violation and won’t increase your rates at renewal time due to the offense.
• Pick a new company. If your insurer won’t forgive your speeding ticket or your rate increase is too high, consider switching car insurance companies. Not all insurers treat speeding tickets the same, so you may be able to find cheaper car insurance if you shop around.