A speeding ticket typically raises car insurance rates by about 25%. How long does the impact of driving violations affect your car insurance rates?

Answer: 3-5 years

Questions:

• What driving violations do you think are most common among teen drivers?
• Why do you think that insurance companies increase the cost of auto insurance for those who have driving violations for so many years after the violation?
• Does this seem fair to you? Why or why not?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the Numbers: (Liberty Mutual)

Insurance companies review your Motor Vehicle Report (MVR) — a record of accidents and traffic violations — covering the past 3 to 5 years. Most minor violations like speeding tickets remain on your MVR for 2 to 3 years, while serious violations like a DUI can stay on your record longer depending on the state.

About the Author

Yonathan Tadesse

Yonathan is a Dallas-based Curriculum Designer at NGPF with 12 years of experience as a high school math, college transition, and financial literacy teacher. An award-winning educator, he has a track record of launching innovative programs at the high school level that expand access and opportunity for students. He is a graduate of Emory University and is passionate about advancing financial education for all students. Outside of work, Yonathan loves spending time with his wife and two kids, working out, playing chess and poker, and learning new things.

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