Auto Insurance

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

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

State Farm, Travelers and Erie increase auto insurance premiums by the lowest percentages — on average — after DUIs, accidents and speeding tickets.
Traffic stop.
Traffic stop. Source: Getty Images

Auto insurance, unlike other types of insurance that lock you into a policy, can be adjusted at any time. For some drivers, this could be significant after a traffic violation or speeding ticket — at which point they’ll typically find higher premiums. Drivers who commit a traffic violation see premiums rise 117% on average when they renew their auto insurance policy.

However, according to ValuePenguin research, that upcharge can vary significantly based on factors including the state in which you live. We explored auto premiums to understand which insurers give policyholders the best second chances — in other words, the cheapest premiums after DUIs, accidents and speeding tickets. Here’s what we found.

Key findings

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

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

But some states aren’t so lenient when it comes to traffic violations. For example, California residents would see an average premium increase of 213%. This is primarily due to laws and regulations in the state that allow insurers to charge increasingly high premiums after a violation.

Similarly, North Carolina residents could see a premium increase of 255% — the highest among our list and five times the increase that Floridians face.

Auto insurance companies by state

By insurer, State Farm offers drivers the best second chances on their auto insurance premiums. Specifically, it was the cheapest company after a traffic violation in 38 states.

However, there are regional insurers that provide policyholders with competitive rates after these violations. For example, Erie Insurance was the best option in Maryland, where premiums would increase by an average of 14%. Similarly, New Jersey drivers have the greatest second chances on their auto insurance premiums through Palisades Insurance, which would raise premiums by 15% on average.

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

Besides states setting regulations on how much auto insurers can charge, insurers put more emphasis on some types of auto accidents than others.

As we found, State Farm offered the best second-chance opportunities among the violations we compared, at 23%. On the other hand, Geico policyholders could expect a 68% increase in premiums.

Below is a detailed breakdown of which companies will give the best opportunities for auto premiums.

DUI

Driving under the influence is the highest-penalized auto incident that we analyzed, with drivers seeing premiums increase by 157% on average. However, Progressive offers the best second chance with an average increase of 24%, or $557.

In fact, this was $1,960 cheaper than the typical increase offered by Geico for someone with a DUI in their driving history.

Company
% increase
Progressive24%
State Farm37%
Travelers39%
Farmers41%
American Family59%
Erie64%
Farm Bureau77%
Allstate87%
MetLife90%
USAA91%
Nationwide98%
Auto-Owners107%
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Accident

Not only will a driver in an accident need to involve their insurance company with handling the damages and processing the claim, but they’ll also need to face the reality that the accident will increase their auto insurance premiums.

However, drivers with Travelers Insurance have the best chance at still having affordable premiums after an accident. The company increases premiums by 20% on average after an accident. Meanwhile, MetLife increases premiums by 68%, or $1,623, a year.

Company
% increase
Travelers20%
State Farm22%
Erie25%
Auto-Owners25%
Farm Bureau33%
USAA37%
Farmers40%
Nationwide50%
American Family53%
Allstate54%
Progressive54%
Geico60%
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Speeding ticket

Speeding is the most common incident a driver may face when on the road among the three we analyzed. Our research found that individuals with a history of speeding violations would be given the best second-chance premiums from Erie Insurance. The regional insurer only increased premiums for speeding violations by $108 on average, or 7%.

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

Company
% increase
Erie7%
Auto-Owners7%
State Farm11%
Farm Bureau13%
Travelers16%
Allstate17%
American Family18%
Geico19%
USAA22%
Progressive27%
Nationwide29%
MetLife29%
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Comparing auto insurance rates after traffic violations can save money

Auto insurance premiums are determined by a variety of factors, including your driving history. For example, between two of the largest insurers in the U.S. — State Farm and Geico — auto insurance premiums after accidents vary by 69% on average.

Doing your homework and comparing auto insurance quotes from a variety of companies is crucial. Drivers who compare will be better able to evaluate the market and determine a policy that offers the best rates based on their driving history.

Methodology

ValuePenguin utilized car insurance quotes from Quadrant. All policies and rates referenced in this study were used for a sample driver shown below:

  • 30-year-old man
  • 2015 Honda Civic EX
  • Average credit

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

Coverage type
Study limits
Bodily liability$50,000 per person/$100,000 per accident
Personal injury protection$10,000
Property damage$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible