Traffic Tickets & Automobile Insurance Rates
Your Insurance Company May Surcharge You For A Single Moving Violation Conviction
On December 24, 2002, the Office of General Counsel issued an informal opinion representing the position of the New York Insurance Department on the issue of whether an insurer may impose a surcharge on an automobile insurance policy for a single traffic infraction. The Office of General Counsel concluded that "an insurer may impose a surcharge on an automobile insurance policy for a single traffic infraction, provided that the insurer's approved merit rating plan contains a provision for such surcharge and the insurer complies with N.Y. Comp. Codes R. & Regs. tit 11, §§ 169.0-169.2(1997) (Regulation 100). [Emphasis added]
The following is an example of one major insurer's merit plan for traffic violations:
Chargeable Violations Experience Period Violation Table
None Past Three Years 1
1 Minor Past Three Years 2
1 Minor Past Two Years 3
1 Minor Past Year 4
2 Minor Past Three Years 5
3 or More Minor Past Three Years 6
1 or More Major Past 3 Years 7,8,9
The Accident and Violation Plan
Under the accident and Violation Rating Plan, you receive a better premium for a good driving record. If you have one or more chargeable ... violations, you may be surcharges for them, resulting in higher premium.
Chargeable Violations:
A violation is chargeable if you or a member of your household is convicted of a traffic violation. A plea of "nolo contendere" or " prayer for judgment continued" is considered a conviction. When more than one violation results from a single occurrence, only one violation will apply. In the event both major and minor violations result from a single occurrence, only the major violation will apply.
Violations of the following types will be considered major:
1. Driving while under the influence of alcohol or drugs.
2. Driving while license is suspended or revoked.
3. Leaving the scene of an accident.
4. Homicide or assault with an auto.
5. Taking part in a prearranged speed or drag race.
6. Driving in a reckless manner where injury or death results.
7. Fleeing or attempting to elude a police officer with an auto.
8. Committing a felony with an auto.
All other types of moving violations will be considered minor.
Violations of the following types are not chargeable:
1. A motor vehicle equipment violation.
2. Failure to display proper license plate numbers, provided such license plates are in existence.
3. Failure to have in your possession an operator’s or chauffeur’s license, provided such license exists.
4. Failure to sign or display a registration card.
5. Failure to wear a seatbelt.
6. Failure to provide proof of insurance when required.
Refund of Surcharge:
Surcharges will be removed and all prior surcharges will be refunded for ... violation which resulted in one or more surcharges if:
2) the conviction of a chargeable violation is ultimately reversed.
Your insurer's merit plan may be different than the above insurer's merit plan. You should check you own insurer's merit plan. Your insurer's merit rating plan can be found in your automobile insurance policy or in your most recent policy renewal offer. You can also get information about your insurer's merit plan from your insurance agent.
On December 24, 2002, the Office of General Counsel issued an informal opinion representing the position of the New York Insurance Department on the issue of whether an insurer may impose a surcharge on an automobile insurance policy for a single traffic infraction. The Office of General Counsel concluded that "an insurer may impose a surcharge on an automobile insurance policy for a single traffic infraction, provided that the insurer's approved merit rating plan contains a provision for such surcharge and the insurer complies with N.Y. Comp. Codes R. & Regs. tit 11, §§ 169.0-169.2(1997) (Regulation 100). [Emphasis added]
The following is an example of one major insurer's merit plan for traffic violations:
Chargeable Violations Experience Period Violation Table
None Past Three Years 1
1 Minor Past Three Years 2
1 Minor Past Two Years 3
1 Minor Past Year 4
2 Minor Past Three Years 5
3 or More Minor Past Three Years 6
1 or More Major Past 3 Years 7,8,9
The Accident and Violation Plan
Under the accident and Violation Rating Plan, you receive a better premium for a good driving record. If you have one or more chargeable ... violations, you may be surcharges for them, resulting in higher premium.
Chargeable Violations:
A violation is chargeable if you or a member of your household is convicted of a traffic violation. A plea of "nolo contendere" or " prayer for judgment continued" is considered a conviction. When more than one violation results from a single occurrence, only one violation will apply. In the event both major and minor violations result from a single occurrence, only the major violation will apply.
Violations of the following types will be considered major:
1. Driving while under the influence of alcohol or drugs.
2. Driving while license is suspended or revoked.
3. Leaving the scene of an accident.
4. Homicide or assault with an auto.
5. Taking part in a prearranged speed or drag race.
6. Driving in a reckless manner where injury or death results.
7. Fleeing or attempting to elude a police officer with an auto.
8. Committing a felony with an auto.
All other types of moving violations will be considered minor.
Violations of the following types are not chargeable:
1. A motor vehicle equipment violation.
2. Failure to display proper license plate numbers, provided such license plates are in existence.
3. Failure to have in your possession an operator’s or chauffeur’s license, provided such license exists.
4. Failure to sign or display a registration card.
5. Failure to wear a seatbelt.
6. Failure to provide proof of insurance when required.
Refund of Surcharge:
Surcharges will be removed and all prior surcharges will be refunded for ... violation which resulted in one or more surcharges if:
2) the conviction of a chargeable violation is ultimately reversed.
Your insurer's merit plan may be different than the above insurer's merit plan. You should check you own insurer's merit plan. Your insurer's merit rating plan can be found in your automobile insurance policy or in your most recent policy renewal offer. You can also get information about your insurer's merit plan from your insurance agent.