Expert: Anne - 2/18/2010

Question
Hi,

I received a speeding ticket (76 in a 65) in Colorado.  The ticket is for $135, and carries 4 points.  However, if I don't contest it and pay within 20 days, it will only carry 2 points.  I am not a Colorado resident (just visiting :-) ).  Colorado, although part of the DLC, does not report minor violations to other states, so my home state DMV will not get notified of this.

My question is basically whether my insurance company will find out about this anyway and raise my rates?  A $135 fine is actually not very large compared to even a 20% rate increase over a few years.  There are some extenuating circumstances, and my record is very clean (no accidents or moving violations for over 25 years), so I could try to fight the ticket, but that would involve traveling back to Colorado and the associated costs.

Unfortunately Colorado is not one of those states that let you take a driver course to mitigate a ticket.

Thanks for any guidance you can give me on this.

Answer
Hello Larry,

Well, insurance companies randomly do check state records for tickets. Sometimes, they go out of state, so they could find out. If they do, they will most likely raise your rates (some insurance companies give you 1 free pass, others do not).

The key for you is to NOT lie to the insurance company. If they ask you about tickets, you will have to disclose the truth or you can be held liable for insurance fraud.

If they do not ask, you most likely do not have a duty to call and tell.

I hope this helps,

Good Luck,
Anne
http://www.auto-insurance-claim-advice.com/