How Traffic Tickets Increase Business Car Insurance

Traffic tickets for company-owned cars can be a significant concern for business owners in New York City. These violations may affect your operations in several ways, especially financially.

Understanding how these tickets can impact business car insurance rates helps you maintain your financial stability and ensures the smooth operation of your company.

Insurance premium increases

One of the most immediate consequences of receiving a traffic ticket is the potential increase in car insurance premiums. For example, rates increase by an average of 8% after a single New York speeding ticket when someone has a clean driving record, according to a Bankrate study.

Insurance companies view traffic violations as a sign of increased risk. As a result, they may raise your rates to compensate for that risk. Even one ticket for running a red light can lead to higher insurance costs.

Financial impact on businesses

For business owners, higher insurance premiums can strain the budget. Increased operational costs can affect your ability to invest in your business, hire employees or expand your services. Consider the long-term financial implications of traffic tickets for company cars and take steps to mitigate their impact.

Steps to minimize the impact

You can take proactive measures to minimize the impact of traffic tickets on your company car insurance rates:

• Defensive Driving Courses. Think about enrolling in a defensive driving course. Completing such a course may help offset the impact of a traffic ticket by demonstrating your commitment to safe driving.
• Safe Driving Practices. Encourage your employees to practice safe driving. A company-wide commitment to obey traffic laws can reduce the likelihood of future violations.
• Regular Vehicle Maintenance. Ensure that your business vehicles are well-maintained. Proper maintenance can prevent breakdowns or accidents that might result in traffic violations.

It is also helpful to periodically review your car insurance policy and shop around for competitive rates. Different insurance companies may offer better deals, even if you have a previous traffic ticket.