How Much Does My Car Insurance Go Up If I Get A Traffic Ticket?

Car Accident insurance going upThe first thing I did when I got home after receiving a speeding ticket was call my car insurance company to find out how much my car insurance premiums would go up. Interestingly, they couldn’t give me a straight answer.

If I get convicted and don’t go to traffic school, I will receive one point on my driving record for the 10 mph over the speed limit violation. When I asked the car insurance agent for specifics, she kept on ducking the answer. For all of you who have received a traffic ticket or will get one, this post should help give you a good idea of what’s at stake when it comes to insurance premiums going up.

Should I Go To Court And Fight My Speeding Ticket?

Speeding Ticket

Back at the scene of the crime

Speed racer is in the house! I got a speeding ticket for going 35 mph in a 25 mph zone the other day and I’m pretty ticked.

The cop pulled me over after I sped up in the middle of a yellow light and asked me whether I knew why he pulled me over. I innocently responded, “Because I went through a yellow light?

He looked at me a little funny and said, “No. Do you know what the speed limit is here on Masonic Avenue?”

I’m not sure officer. 35 mph?” I responded.

No, it’s 25 mph and I got you on the gun going 45 mph,” said the officer.

First I was shocked that a five lane artery (2 lanes going south, 3 lanes going north) would have a speed limit of only 25 mph. I wasn’t blowing by anybody at all. Second, I was super surprised the officer said he clocked me at 45 mph!

Moose is slow as molasses as a 14 year old Land Rover Discovery II. There is NO WAY Moose could reach 45mph in two blocks. His 0 – 60 mph time is 11.4 seconds new and surely he’s lost a step over the years. 45 mph = 66 feet / second. Average city block is around 400 feet. I would have to be putting my pedal to the metal to get to 45 mph, which I wasn’t because that action guzzles more gas.

I looked at the officer when he told me I was going 45 mph and said, “You mean this car? I don’t think so. I haven’t had a speeding ticket in 8 years since my car is so slow and old.

He kinda laughed and asked me for my license and registration.

When he came back three minutes later, he handed me a ticket and said, “I’m not going to write you up for 20 mph over the speed limit because that’s not good for your insurance and I don’t want to hammer you. I’ll just do 35 mph in a 25 mph instead.

Gee thanks. What a nice guy! I was actually hoping he’d let me off with a warning as two other cops did in the past six years when I was driving Moose. Who gives a speeding ticket for 35 mph in a 25 mph zone when everybody is driving 35 mph?

What Kind Of Car Should The Mass Affluent Buy?

Moose - A Land Rover Discover II Getting Fixed

Moose On The Operating Table

We previously described the mass affluent class by income, wealth, and investable assets. Mass affluent is essentially a subset of the middle class that’s well educated and upwardly mobile due to their education and optimism. Given you’re reading a personal finance site for fun and education and I’m writing personal finance articles, let’s all consider ourselves mass affluent with upside potential! Hooray!

After 10 years of owning the same car, I’ve decided to finally buy something new within the next six months. There are a number of problems with Moose, a 2000 Land Rover Discover II, including:

• Warning lights on for the traction control, hill decent, and ABS.
• Check engine light is permanently on.
• Sunroof doesn’t open or close.
• Heated seats don’t work.
• No Bluetooth.
• CD changer doesn’t work.
• Front passenger seat no longer adjusts due to broken motor.
• Cigarette charger doesn’t work, which means I can’t charge my mobile devices on long road trips.
• Brakes are mushy even after changing them two years ago.
• Not sure if the airbags work since they haven’t had their 10 year service.
• Gears don’t connect once every 50 starts for some reason. Have to turn him off, wait for 10 seconds, and turn back on to reengage the gears.
• Two balding tires that cost $200 to replace each.

Other than these 12 problems I can think of, Moose runs like a champ!

Over the past three years I’ve spent about $1,100 buying him a new alternator, a new serpentine belt, a tune up, and fixing a massively leaking fuel pump. If there is one more problem that costs over $500, I’m sad to say that I’ve got to let him go. It’s hard to do because he’s been so good to me. Moose has never broken down, not even in the worst Tahoe snow storm. If I’m ever in an accident, I feel safe that Moose will hold up better as well.

I’m starting to fear that I’ll one day get stranded somewhere when Moose experiences some transmission glitch. I know all I have to do is call roadside assistance and wait 45 minutes for a boost or a tow, but that’s not ideal if I’m rushing somewhere. If you have an older car, getting roadside assistance for several bucks a month is the best thing ever. I did leave my lights on several times before and roadside assistance came quickly to give me a jump.

I’d love to finally find a new vehicle that has all the creature comforts that many people for the past five years have taken for granted. You know, like being able to plug in your mobile phone to listen to some tunes. I’ve come up with a list of vehicles I’m considering for myself and for the mass affluent. Let me know which particular car or category you’d choose and why. 

Should I Get An Electric Vehicle (EV)?

Tesla Model S

Tesla Model S

Two things happened recently that has spurred my interest in electric vehicles: 1) Watching a Netflix show on Elon Musk’s desire to reduce our fossil fuel consumption by starting Solar City and Tesla Motors, and 2) Getting into my new tennis buddy’s Tesla Model S P85+ and being absolutely amazed! My friend used to work with Elon at Paypal, and now runs an enormous internet company. Crazy how interconnected we all are.

14-year old Moose is a gas hog with an average mpg of around 15. But as I said in a previous post, anybody who doesn’t DESTROY their old car before buying even a hybrid is adding more pollution to the Earth. Now that electric cars are a reality and Moose is becoming a safety issue, I’m wondering whether going electric is the way to go.

What Your Car Says About Your Investing Style And Money Making Acumen

This is a fun guest post from PK, a software engineer who writes at Don’t Quit Your Day Job…, a site which covers the intersection of personal finance, investing and economics. Follow DQYDJ if you care about the story behind the story.

Quick: what was the fastest production car that General Motors made in 1987?

The Corvette? A common answer – but the performance champion was the lesser known Buick GNX, which lives on today in the Buick Regal. (The Corvette lives on today in, of course, the Corvette)

Cars & Investing: A Universal Language!

So… why cars?

Well, first, I’ll be in fine company; this site has a history of well-reasoned articles about cars, what with the seminal 1/10th rule on car buying or its cousin, the 5% of net worth car buying rule. However, that’s not the full reason.

Like most engineers still in the workforce, I’ve spent a fair amount of time on Slashdot (tagline: “News for nerds, stuff that matters”) over the years. One of the tongue-in-cheek memes of that site (and, really, engineering-focused sites in general) is the venerable car analogy. No matter how complicated the topic, there will always be an argument as to how cars, trucks, traffic, roads, and other self-directed transportation-related items can somehow shine a (head)light on the topic. If the readers on those sites cared about investing, I’m sure you’d already have seen similar analogies put forward.

But, they don’t – and we do.

So, how would you describe the major classes of investors – passive, technical, growth and value – with car analogies? Let me take a shot first, then let’s hear your improvements in the comments!

Ferrari

In Ferris Bueller’s Day Off, Cameron’s Father’s ‘choice’ Ferrari 250GT California was just a replica… (Wikimedia)