Auto Insurance Rates are directly affected by your driving record and the number of moving violations and/or tickets you have on record. With a greater number of infractions comes the possibility of an increase in your auto insurance premiums. The simple fact is that car insurance rules and the car coverage terms of an auto policy dictate that the insurance company does not want to insure a reckless driver. If you pose a greater risk of wrecking and calling on your insurance to pay for it, your auto insurance rates will increase. Out of state and in state violations both affect your driving record in basically the same way.
When you get an in state moving violation, it is recorded on your personal driving record. Your insurance company makes periodic audits of your driving record when evaluating your policy and car coverage terms. Extensive moving violations that indicate you could be a risk for the company prompt an increase in your auto insurance rates to help cover the increase in liability to which the company has been introduced. Out of state moving violations are a bit different in terms of how they are reported. Tickets from other states are not always included in the violations recorded on your in state driving record, or at least it may take longer for out of state tickets to be placed on your record. In the past this meant that you most likely would not see an instant increase in your auto insurance rates due to out of state violations because the reporting system was lagging behind the insurance audit system. However, today with the increase in use of technology in the insurance and law enforcement industries, out of state violations are often reported nearly as quick as in state moving violations. Therefore insurance companies may notify you fairly quickly about any affect the violations may have on your auto insurance rates.
Auto insurance companies, to their credit usually only issue warnings and do not raise auto insurance rates for first time offenders who have out of state moving violations. Generally, unless your violation included driving under the influence or excessive speed including reckless endangerment it is unlikely that an out of state violation will raise your auto insurance rates in any significant way. However, they do have a cumulative effect to the end that if you continue racking up violations (in state and out of state both) your insurance company is going to notice and will most assuredly raise your auto insurance rates. A rate hike is not necessarily a punishment, but instead is encouragement to drive safely and within your limits.
It is best to take the “hint” from the insurance company when you do get a warning for a moving violation to begin driving well within your limits. An increase in auto insurance rates may be a deterent from reckless or dangerous driving, however the ultimate price that can be paid for dangerous driving is with your health or even you life.