Last year Geico Insurance Co. donated $20,000,000 ( twenty million dollars ) to police departments in the form of new laser and radar guns. Other insurance companies donated large amounts as well.
Insurance companies know that your chance of an accident do not dramatically go up because of a speeding ticket. As a matter of fact the ratio to accident increase is only 4% for someone having three tickets in a three year period. (source: Insurance company institute).
If you get three tickets in a three year period your rates will double at the very least and more likely triple. For a 4% increase in risk they increase your premium by 100% to 200%. They do this because they can. They can because you as a consumer don't know the scam.
The reason they donate radar and laser guns to police department is not because they are trying to save lives. They want the amount of tickets issued to increase. If the amount of speeding tickets increases their ability to raise your rates increases dramatically, fattening their bottom line big time.
They are in business to make money. If you are a bad driver they don't want you at any cost. If you are a good driver they want to get more money from you if they can. To do this they have adjustments for your rate according to the amount of tickets you get knowing that their risk does not significantly increase.
Another statistic is that most bad drivers don't get tickets. They get accidents and normally drive slow and erratic. They don't pay attention, talk on their cell phones or are are just plain stupid. Reckless drivers get more accidents then tickets because their chance of getting a ticket is the same as a good driver that speeds now and then. Drunk drivers account for 20% of all accidents and 60% of all fatal accidents. If you get a DUI you will pay through the nose for insurance.
In over 95% of all accidents the amount of speeding tickets accumulated in the last three years was not the issue.
Insurance companies have an elaborate computer system that connects to every State Traffic Regulatory Agency where speeding ticket data is maintained. They have full access to the data and know all about your tickets. They have sophisticated programs that rate you according to the amount of tickets in a given time period and the miles over the speed limit of every ticket. The same computer also tracks your insurance applications. They want to keep you business at the highest possible price to you, the greatest amount that you are willing to pay. If they feel that they can get away with it they will raise your rates.
They know the rates of every other insurance company. They have people that do nothing but put in factious applications to their competition and then enter the data into their computers. They know what factors will trigger a rate increase and what that rate increase will be for every one of their competitors regarding tickets or combinations of tickets and accidents.
Example: You have two tickets in a three year period. They know your risk factor has increased by 1.5% and they want to raise your rate by 75%. If you broadcast insurance applications they know that the competitor is going to give you a rate about 5% higher then your present rate but 70% less then the new rate they want to hit you with. They know that their risk has not significantly changed and they still want your business so they won't change their rate when the renewal comes around.
If you did not broadcast your application before renewal they know they have you.
If you go shopping after your rate has increased because of the tickets the competition also knows this. They know that your new rate is 75% higher then it was and they know exactly what that rate is. They no longer have to offer a 5% higher rate because a new rate offer of say a 65% increase will be lower then the rate from your present insurer. In short you are now screwed.
The trick is to make a broadcast insurance application as soon as you get your ticket and another one about one month before your renewal date. The first application puts them on notice that you are shopping and the second application puts them on notice that you have a valid rate in your hand, good for 90 days. That means if they raise your rate they know you will switch because you have a valid lower rate in your hands and you can switch to that rate. They will not raise your rate and if they do it won't be more then 5% because their statistics have shown that this is the tolerance lever before switching.
The first application is most important because it puts their computer on alert and in the event you forget to apply again before your renewal. They won't take the chance of raising your rate because they don't know if you have made other applications that they don't know about.
Since car insurance is normally renewed every six months and quotes are valid for 90 days in general there is a 50/50 chance that your rate increase triggering ticket will be within 90 days of renewal.
Remember once your rates go up they stay up for three years and go down slowly. If you are paying $500 every six months and your rates jump to $1,200 you will be paying $3,600 more over the next three years because you didn't spend a few minutes protecting yourself by broadcasting applications. This protection is so simple to do, it costs you absolutely nothing and at worst, absolute worst, you may find that your insurance company has been giving you the Scrooge treatment. You might even save a bundle of money.
This is like a morning after pill if you get a miserable speeding ticket. Even if it is your first ticket in ten or twenty years you should still get the quotes because you never know if another ticket or minor accident is waiting for you around the next corner.
I have provided a link to what I have found to be the most painless format that broadcasts to almost every insurance company. No commitment, no phone calls, the quotes are either sent by snail mail or email. ( HINT: apply to both links to maximize your exposure ) If someone should call you, just tell them that you are reviewing quotes by email.
IMPORTANT: Do NOT include your present ticket when it asks for the number of tickets in the past five years. Your present ticket is not yet a conviction and does not count until it is a conviction. If you use the Tipmra defense it probably won't be either. Count only tickets for the past three years because tickets over three years old are purged from the States Computer System. (you can confess to five years worth of tickets if you so desire or can remember them all)