This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

I Forgot To Tell My Insurer About A Ticket

Question: Will an insurer care that I forgot to list a speeding ticket I got last year?  It slipped my mind while shopping for a new insurance policy.  Is it really that important that the insurance company knows about all of my violations?

Answer: Yes. Your rates were based on the insurance company's calculation of the risk you posed. More tickets equal more risk of claim.

Usually an insurance company will find out about a ticket even if you accidentally (or purposely) leave one out. At that point, if the omission is a minor violation, the company will recalculate your premium based on the new information. But the new rate isn't a punishment for lying or forgetting, only a recognition that you're not quite the risk you said you were.

To give you an accurate quote, you need to supply an auto insurance provider with accurate information. The quote you get is based on the personal information you provide. If you decide to act on the quote and buy a policy, the insurer then verifies the rating factor data you've given by requesting copies of certain reports, such as your credit history (if state laws allow), claims history ( C.L.U.E. report), and motor vehicle record (MVR).

When something shows up on a report that you didn't inform the insurance company about, the insurer will re-evaluate if you're an acceptable risk.  You may still be offered a policy, but your rates could change from what you were originally quoted.  One minor ticket may not change rates much, if at all, but if it's a major offense expect your rates to jump significantly or the offer to disappear altogether. 

If you already purchased a policy, then when the insurer finds the “forgotten” information you may be notified that your premiums were modified due to this new data and that to keep your policy in effect you will need to pay an additional premium amount.

If you don't pay the extra cost, the policy will cancel out.  Or you may just be informed by the insurer that it's canceling your policy because it now perceives you to be a high-risk driver that they don't want to insure.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs