Here's How Much Speeding Raises Your Auto Insurance Rates

Your auto insurance rates largely depend on how much of a risk you are. If you have a clean driving record, you'll be considered low risk, which means you'll qualify for better rates.

On the other hand, insurance companies will charge you more if you have any negative items on your driving record. That includes accidents, driving under the influence (DUI), and those pesky traffic tickets. So if you've gotten a speeding ticket, you may be wondering if your rates will go up.

The Motley Fool Ascent recently released data on how your driving record impacts your car insurance. Here's how much you can expect your rates to rise after speeding, plus the best car insurance companies when you have a speeding ticket on your driving record.

Speeding raises your auto insurance rates by almost 10%

Drivers with a clean record pay an average of $2,706 in annual car insurance premiums. The average premium with a speeding ticket is $2,958. That's $252 more, and a 9.3% increase in rates compared to a clean driving record.

Overall, speeding is typically a minor infraction. The increase in premiums comes out to $21 per month. It's a far cry from a DUI -- drivers with that on their records pay an average of $4,282 in annual premiums.

It's worth mentioning that where you live also has a big impact on your insurance rates, and how much they're impacted by a speeding ticket. In some states, a single speeding ticket hardly makes any difference. For example, in Alabama, drivers pay an average of $2,751 with a clean record and $2,762 with a speeding ticket. That's only an $11 difference.

In other states, speeding can cost you much more. Michigan has the highest auto insurance rates in the country, and there, speeding raises the average rate by almost $2,000 -- from $4,664 with a clean record to $6,593 with a speeding ticket. Speeding is also costly in California, where it raises rates by an average of $781.

The most affordable car insurance companies after a speeding ticket

Among major car insurance companies, USAA has the best rates overall, and it also has the best rates for those who have been caught speeding. Its average annual premiums are $1,508 with a clean record and $1,685 with a speeding ticket.

However, not everyone can get insurance through USAA. It's exclusively for military members, veterans, and their families. If you're eligible, then it's an excellent choice.

Geico comes in second, in terms of both overall rates and rates after speeding. Average annual premiums are $1,750 with a clean record and $1,943 with a speeding ticket.

Keep in mind that the only way to know how much each company will charge you for car insurance is to go rate shopping and compare your options. You might get the best deal from USAA or Geico. Or there might be another carrier that offers you an even lower rate. It's not just about the price, either -- it's also important that your policy has all the coverage you need.

Minimizing the impact of a speeding ticket

In most of the country, speeding doesn't cause a huge increase in car insurance premiums. You should still avoid it, but if you have a speeding ticket on your record, it's most likely not going to cost you too much more.

To potentially avoid a rate increase after speeding, see if your insurance company has any discount opportunities available. One that's worth considering is telematics. Your insurance company sends you a tracking device to attach to your car. That device shares info about your driving habits with your insurance company. If you demonstrate that you're a safe driver, you may get a discount.

Rate shopping is also a good idea, and not just after a speeding ticket. Compare car insurance options at least once a year to make sure you're not overpaying.