It’s never fun to get a traffic ticket, especially if it’s a moving violation (like a speeding ticket). The most obvious cost of your traffic ticket is that you usually have to pay a fine. Depending on how fast you are going, and the state you are in, it can very expensive indeed. However, the fine associated with the traffic ticket isn’t the only cost. You might find yourself paying even more if you aren’t careful.
Higher Insurance Costs
When you’re trying to pay a traffic fine, you probably aren’t thinking about the ticket’s impact on your insurance. However, a moving violation and other types of tickets might have an impact. Once you’ve been cited for something like speeding, or for running a stop sign, you are considered a bigger risk. What if your actions result in an accident next time?
Insurance companies adjust your premiums according to how much of a risk they think you are. Once you have a ticket, you could see an increase in your monthly premiums for three years. This is a monthly cost to you — and a monthly reminder that your traffic ticket cost more than just the fine.
The Cost of a Class
In some cases, you might not have your ticket reported to your insurer if you agree to take a defensive driving class. If you take the class within a set period of time, you can usually avoid the increased insurance premiums down the road. However, the class itself often costs money. Figure out if the cost of the class is less than the cost of a higher premium each month. In many cases, it’s probably more cost efficient to just pay for the defensive driving course and avoid the premium increases.
Piling on the Penalties
Most tickets come with a “due date.” You have a set period of time in which to pay your fine. If you don’t you might be charged additional penalties. The longer you wait, the higher the cost of the ticket.
What About Your Credit?
Your traffic ticket isn’t going to result in a problem with your credit — as long as you pay the ticket. Depending on the ticket, if you don’t pay your fine, the governing authority might decide to turn your account over to collections for your unpaid ticket. Once a collections agency becomes involved, it begins to impact your credit. Parking tickets can also cause this type of problem.
Once your credit is impacted, it means higher costs on a number of other financial transactions, especially in the form of higher interest rates on any loans you apply for in the future.
Your best defense, of course, is to obey the law when you drive. It will cost you a lot less in the long run.
