Understanding How Statute of Limitations Impact Auto Insurance Policies

Searching for auto insurance can be a complicated process. Insurance companies may assess multiple factors while figuring out your premium. Practicing safe driving habits can help you save money, while an extended history of traffic tickets and other violations may make it difficult to find coverage. Here’s a look at how the statute of limitations may impact your auto insurance search.

Why Statute of Limitations Matter

Maintaining a perfect driving record is difficult for most people. While looking for auto insurance coverage, be aware that one small parking ticket will not impact your insurance rates. Everything depends on your statute of limitations. Based on the law, the statute of limitations for moving violations is around two years on average. However, there are multiple factors to consider. The time frame may vary based on the nature of the violation and its severity. Once the time frame has passed, you are no longer at the mercy of the courts. This is a complicated issue, as most drivers can’t avoid a ticket for two years. Some drivers have tried to succeed and failed. In regards to auto insurance policies, a common moving violation may stay on your record for about three years.

Extended Premium Increases

In some cases, a moving violation may cause your auto insurance premium to increase for close to five years. This is obviously a worst-case scenario. Research shows that drivers who are involved in a serious accident or have multiple high speeding tickets may see those items stay on their insurance record for over ten years.

How Speeding Tickets Impact Your Premium

In most cases, your auto insurance premium will rise based on how fast you were driving when you received the speeding ticket. If you were going ten miles over the speed limit when you got pulled over, you might end up paying a higher monthly premium by eight percent. Your insurer likely has an equation they rely on to determine your new rate. If you were going 25-30 miles over the speed limit, you can expect a substantial increase in your premium.

Handling the Process

If you have a violation on your record, talk with your insurer. It’s possible that you can come to a common ground regarding your penalty. Your insurer may forgive the moving violation if there were unique circumstances involved.  Some insurance companies allow drivers to take a special driving course in exchange for having the ticket forgiven. Each carrier has a unique method for handling the situation. The details may vary, but make sure to ask your insurer if they have a program that aligns with your situation.

Other Factors

While your speeding violation may impact your auto insurance premium, there are other variables that your insurer may look at as well. Your age and the type of vehicle that you drive may impact your insurance premiums. Research shows that young drivers are more likely to be involved in accidents or accumulate parking tickets. As you gain more experience as a driver, your insurance premiums will likely go down. If you have a high-end vehicle, your premiums may increase due to the potential of a collision or other violations. Finding replacement parts for a high-end vehicle can be expensive and complicated as well, which also causes your premium to rise. Look for potential discounts to help offset your rising premiums. While paying high insurance premiums is uncomfortable for many, you should see relief in the future provided that you maintain good driving habits. If you have any questions about your auto insurance policy, contact the team here at ISU Wissink Insurance Agency, and we will assist you.