Your Teen Got a Ticket or Was in an Accident on Your Car Insurance. Now What?
Car insurance companies base your premium on the likelihood of you filing a claim. When you add a teenager to your policy, expect your premiums to increase due to their higher-risk driving behavior. If your teen receives a traffic ticket or gets into an accident, your premiums could rise even further.
After ensuring your teen’s safety following an incident, you’ll need to address the potential financial impact. Here’s what you need to know about how traffic tickets and accidents involving your teen can affect your car insurance rates, and steps you can take to minimize the impact.
### How Does a Teen Traffic Ticket Affect Your Car Insurance?
Traffic tickets can impact your car insurance rates, but the first ticket may not immediately raise your premium. Moving violations like speeding or running a red light will show up on your teen’s motor vehicle report (MVR) and could lead to a 20% to 25% increase in your premium. More severe violations, like DUIs, will result in higher penalties and insurance rates.
The impact of successive tickets or serious violations can further raise your premiums. Online calculators can estimate the increase based on your state and violation type, but factors like previous claims history and policy type are not always considered.
### How Does a Teen Car Accident Affect Your Car Insurance?
Even a single accident involving your teen can increase your premiums by up to 40%. If your teen is found at fault, this increase could be closer to 60%. Surprisingly, your rates may go up even if your teen is not at fault, depending on the state’s at-fault or no-fault standards.
In at-fault states, the driver responsible for the accident faces increased premiums. In no-fault states, each driver is responsible for their damages, potentially leading to higher premiums even if your teen is not at fault.
### How Long Does the Impact Last?
Accidents and tickets remain on your record for 3 to 5 years, affecting your premiums. States regulate how far back insurers can look into your driving history, known as a look-back period. Once your teen moves out and gets their insurance, their driving history no longer affects your premium.
### What to Do About an Accident Claim
Review your policy for coverage details and accident forgiveness options before filing a claim. If the cost is less than your deductible, paying out of pocket may be a better option to avoid rate hikes. Consider shopping for a new insurance company or adjusting your policy terms to lower premiums.
### What to Do About a Traffic Violation
Contest the ticket in court to potentially overturn or reduce it. Defensive driving courses can help reduce points on the license, while installing a dashcam can provide evidence in case of accidents.
### Other Steps to Consider
Enroll your teen in defensive driving courses, consider usage-based insurance, and install a dashcam for additional safety measures. Avoid removing your teen from your policy to prevent coverage gaps in their insurance history.
By following these steps, you can navigate the impact of traffic tickets and accidents involving your teen on your car insurance premiums.
