These Insurers Offer Consumers the Best Second Chances When Applying for Auto Insurance

Unlike other types of insurance that bind you to a policy, auto insurance can be changed at any time. For some drivers, this could be significant following a traffic violation or speeding ticket, at which point their premiums will typically be higher. When drivers commit a traffic violation, their auto insurance premiums rise by 117 percent on average when they renew their policy.

However, according to LowCostInsurance research, that upcharge can vary significantly depending on factors such as where you live. We looked into auto insurance premiums to see which companies give policyholders the best second chances — in other words, the cheapest premiums after DUIs, accidents, and speeding tickets. Here's what we discovered.

Florida and New York residents are given the best second chances after traffic violations

When we compared average full coverage premiums to premiums after a DUI, accident, or speeding ticket, we found that Florida and New York residents received the best redemption, with average premium increases of 51% and 71%, respectively.

However, not all states are so lenient when it comes to traffic violations. California residents, for example, would face a 213 percent increase in premiums. This is primarily due to state laws and regulations that allow insurers to charge increasingly high premiums following a violation.

Similarly, North Carolina residents could face a 255 percent increase in premiums, the highest on our list and five times that of Floridians.

State Farm provides the best second chances on auto insurance premiums among insurers. It was, in particular, the cheapest company after a traffic violation in 38 states.

However, there are regional insurers that offer competitive rates to policyholders following these violations. Erie Insurance, for example, was the best option in Maryland, where premiums would rise by an average of 14 percent. Similarly, Palisades Insurance provides the most second chances on auto insurance premiums for New Jersey drivers, raising premiums by 15% on average.

State Farm offers the lowest increase on average after traffic violations, while Geico offers the highest

Aside from states regulating how much auto insurers can charge, insurers place a greater emphasis on certain types of auto accidents than others.

State Farm, we discovered, provided the best second-chance opportunities among the violations we compared, at 23 percent. Geico policyholders, on the other hand, can expect a 68 percent increase in premiums.

A detailed breakdown of which companies will provide the best opportunities for auto premiums is provided below.

DUI

Driving under the influence is the most heavily penalized auto incident we studied, with drivers seeing their premiums rise by 157 percent on average. Progressive, on the other hand, provides the best second chance, with an average increase of 24 percent, or $557.

In fact, this was $1,960 less than the average increase offered by Geico for someone with a DUI on their record.

Accident

A driver in an accident must not only involve their insurance company in handling the damages and processing the claim, but they must also accept the fact that the accident will raise their auto insurance premiums.

Drivers with Travelers Insurance, on the other hand, have the best chance of maintaining affordable premiums after an accident. Following an accident, the company raises premiums by 20% on average. Meanwhile, MetLife raises premiums by 68%, or $1,623, per year.

Speeding ticket

Among the three we studied, speeding is the most common incident a driver may encounter on the road. According to our research, individuals with a history of speeding violations will receive the best second-chance premiums from Erie Insurance. The regional insurer only raised speeding ticket premiums by $108 on average, or 7%.

Farmers Insurance, on the other hand, penalized drivers the most for speeding tickets, with an average premium increase of 34%.

Comparing auto insurance rates after traffic violations can save money

Your car insurance premium is determined by a number of factors, including your driving record. For example, auto insurance premiums after an accident vary by 69 percent on average between two of the largest insurers in the United States, State Farm and Geico.

It is critical to do your research and compare auto insurance quotes from various companies. Drivers who compare will be able to better evaluate the market and choose the policy that offers the best rates based on their driving history.

Methodology

Quadrant car insurance quotes were used by LowCostInsurance. All of the policies and rates mentioned in this study were applied to the following sample driver:

• thirty-year-old man
• Honda Civic EX 2015
• Credit is average.

The study's base policy was a full coverage policy with the following limits: