This Day On The Street
Continue to site
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

Two Tickets And A Wreck: What To Expect

Question:  Within the last year, I received two traffic tickets and was at-fault for an auto accident.   What do you think will happen with my license (I'm in California)?  And what about my car insurance? Do you think these things will increase my rates?

Answer: In general, multiple tickets and accidents will cause your auto insurance rates to spike.  It doesn't help that yours were in such a short period of time. It's even possible that your current car insurance company will now consider you to be such a high-risk driver it will force you to look elsewhere for coverage by not renewing your policy.

Car insurance companies' rating systems vary -- which is how there are competitive prices available to all types of drivers -- but your driving record is a major rating factors to all insurers.

Some auto insurance providers won't raise your rates after a single minor traffic ticket, but simply take away any safe or good driver discounts you had. Other car insurance companies up your premiums by 10 to 20 percent (or more) after a first moving violation.  (See “ Tickets that don't raise your insurance rates”)

Normally, a second ticket is frowned upon much more by auto insurers.  You're starting to show a pattern of risky driving behavior and thus rates may go up as much as 40 percent for that second ticket.

Your car insurance costs could go up even more if you were convicted of a major violation, such as careless driving or a DUI, due to the riskier nature of the offense.  It's pretty simple: The more of a risk you pose as a driver, the more you are going to pay in auto insurance premiums. (See “ What a big ticket does to your car insurance”)

Now let's add in your at-fault accident. One car accident on your record can affect rates by 10 percent to 40 percent. Add this to the rate hike for tickets and your rates could be increased considerably - and keep in mind that the surcharges you receive will continue for the next three to five years. 

Since surcharge schedules vary from one insurer to the next, you need to comparison shop to find the insurer that is priced the best for your particular rating factors.

If your auto insurance company will keep you, then maybe it will have the cheapest car insurance premiums, but it's very possible that another insurer will instead.  Car insurance quotes for even high-risk drivers will differ by hundreds, if not thousands of dollars.

For example, we compared quotes for a 35-year-old male in Oakland. With a clean driving record, the cheapest quote for liability coverage only was $604 a year. With two minor speeding tickets and an accident, the quotes ranged from $1,086 to $1,588 a year.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs