The Effect of Speeding Tickets On Your Car Insurance Rates
Drivers who have excellent driving records can easily obtain car insurance quotes at the lowest possible rates. However, if a driver gets a speeding ticket, car insurance costs could go up several hundred dollars a year for three to five years, depending on how long state law requires the ticket to stay on the driver’s record.
Even if this is the driver’s first speeding ticket, the car insurance rate may be raised by the insurance company. This rate increase is based on studies done by two insurance industry research groups, the Insurance Institute for Highway Safety and the Highway Loss Data Institute. These groups have found that drivers with one or more speeding tickets have a fifty percent higher chance of causing an accident. Some insurance companies may be lenient with a long time customer and forgive the first speeding ticket if the violation is minor.
The insurance company will look at the type of speeding ticket incurred by a customer and decide if it is a severe violation. Under the laws of most states, severe speeding violations include those occurring in a school zone and those occurring in a construction zone. A speeding ticket may also be called reckless driving if a driver exceeds ninety miles per hour or exceeds the posted speed limit by more than fifteen miles an hour. The excessive speed limit for reckless driving is established by state law.
Most insurance companies will raise a driver’s car insurance rates for any of these offenses. Rates will also be raised if an accident was caused by the speeding driver. Rates for other types of insurance, such as life and health, could also go up because the driver is viewed as a high risk.
Speeding tickets in many states can be dismissed if the driver takes a traffic school safety course, which can be completed in person or online. The driver will still be required to pay the fine for the speeding ticket, but the ticket will not appear on the driver’s record. Speeding tickets can also be fought in court, but the outcome of a court decision may not be in the driver’s favor.
The car insurance business is very competitive, and even drivers with poor driving records can save money by comparing quotes from several companies. The best way to keep the cost of car insurance low is to avoid speeding tickets and other moving violations.
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Question by BerryPink: 3 Tax Questions : Lease Refund, Car Insurance premium and Donations:?
1- I turned my leased car in and received a refund, do I need to
show it on my taxes when I file, and in which section?
2- Can you claim car insurance premiums? ( I couldnt find anything addressing that on tax slayer)
3- I made a donation to salvation army – about 15 bags of clothes and shoes – they gave me a receipt but they did not itemize -or specify a dollar amount, How should I claim it ?
Thanks
Best answer:
Answer by Wayne Z
1 – No
2 – No
3 – You determine the value. Donations go on Schedule A (Itemized Deductions). If you go over $ 500, there are more forms to fill out (Form 8283 ?????). Two things to keep in mind. One, used clothing is worth much less than you think and can only deduct its value, not its original cost. Two, donations only get you a tax benefit if you itemize. If you are not paying on a mortgage, you probably won’t have enough to itemize and you will get no benefit from the donation….besides clean closets.
Add your own answer in the comments!
Effect, Insurance, Rates, Speeding, Tickets
1. Unless it was deducted as a business expense (not just claiming flat amount for milege) it is not considered income and not taxed.
2. Unless you are closely tracking all vehicle expenses, using the vehicle for a business, etc. why would insurance premiums be deductible? If you are using this vehicle for business (other than communting to/from work), there are a lot of qualifiers and forms – check IRS site. If you are deducting and/or being reimbursed a flat milege amount, then it is not deductible since its cost is already covered in the milege reimvursement. (Personally, I recommend the milege reimbursement unless you are using the vehicle almost exclusively for work and have it’s ownership under the business).
3. You have a receipt. That is all you need.
Side note: This is not the place to ask these unless you are looking for general ideas. Research the IRS site and/or tax accountant.