Holiday Travel? Study Finds Where Unsafe Driving Raises Insurance Most

Studies
Holiday Travel? Study Finds Where Unsafe Driving Raises Insurance Most

Speeding and driving under the influence can lead to disastrous consequences, for both society and your personal and financial well-being. Increases in your auto insurance rates are just one factor, but they can be considerable, especially in states such as North Carolina, California and New York.

Across the country, a DUI will cost consumers an average of 62% more on their annual insurance policies, according to an analysis by NerdWallet. With one speeding ticket, rates jumped 14% on average. Depending on where someone lives, these increases could translate into hundreds or thousands of dollars a year.

In North Carolina, a DUI raises a driver’s annual rate by 368% on average — from about $872 to $4,077. Other states with the costliest insurance penalties for drunken driving are California (128%), Oregon (126%), Delaware (124%) and Vermont (103%).

In some states, insurance companies are more lenient. The smallest rate increases after a DUI can be found in Louisiana (17% average rate increase), Maryland (19%), Utah (21%), Nebraska (28%) and Tennessee (28%).

Speeding increases the cost of auto insurance the most in North Carolina (62% average rate increase), Wyoming (57%), New York (33%), Connecticut (27%) and Arizona (26%). However, speeding may not always drain your pockets. In 19 states plus D.C., the insurance rate increase for one speeding ticket is less than 10% when compared with the policy price with no infractions.

 

The analysis looked at car insurance quotes in each state and the District of Columbia for drivers carrying liability coverage, uninsured motorist coverage, underinsured motorist coverage in states where required, and collision and comprehensive coverage with a $500 deductible. A comparison was made of the rates of sample drivers with a clean driving record to those with one speeding ticket for driving 11 to 15 miles per hour over the speed limit or those with a drunken driving infraction. Read the full report.

Elizabeth Renter is a staff writer at NerdWallet, a personal finance website. Email: elizabeth@nerdwallet.com. Twitter: @ElizabethRenter.