Question of the Day: How much does a speeding ticket increase the annual cost of car insurance?
Answer: $293-$381, depending on speed over limit
- Why do you think insurance companies raise the annual cost for drivers that get speeding tickets?
- Do you think the increased insurance cost from speeding, in addition to the cost of the ticket itself, has an impact on driving behavior?
Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (Zebra):
While violations like not buckling your seatbelt are pretty straightforward, others come with degrees of severity. If you’re caught speeding, for example, just how fast you were going over the speed limit will impact the size of your insurance penalty. Getting ticketed for driving 6-10 mph over the speed limit increases car insurance rates about 20%, while speeding 21-25 mph over the limit raises rates almost 26%.
Here's a related question of the day that looks at a broader set of driving violations and their impact on car insurance costs.
Here are more NGPF activities to increase your students' understanding of how car insurance works.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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