Car insurance rates jump for drivers by almost 20% after just one moving violation ticket and soar over 50% after a second ticket. That’s according to a new report from insurance.com that looked at 397,000 insurance quotes in 2010. Those rate increases were even higher for drivers age 65 and older who were ticketed for moving violations such as speeding. At an average annual auto insurance premium of $1,119 for a driver with no violations, that can be up to $1,713 after three tickets. That cost is also in addition to the cost of the ticket itself, which for a moving violation in California can now exceed $200. How do insurance companies determine these increased rates for higher risk drivers and do they fairly account for insuring that higher risk?
Pete Moraga, spokesperson, Insurance Network of California
Doug Heller, executive director, Consumer Watchdog