How Do Car Insurance Companies Find Out About Traffic Tickets?
Reader’s Question:
I got a question about speeding tickets. I know that normally getting a speeding ticket would have a negative impact on my car insurance rate since it would cause an increase on my premium. Now, my question is, do car insurance companies in Maryland find about the traffic right away? Or does it take some time?
Lorrie
Columbia, MD
Hello Lorrie!
According to my boyfriend who had several traffic tickets, in most cases car insurance companies do not find about the traffic violation right away. One of the reasons is that you need to be convicted first of the traffic violation before it reflects on your driving records. Once convicted, the court would report it to the Maryland Motor Vehicle Administration (MVA) to have it recorded on your driving record. Usually, this process takes about 30 days or sometimes it takes even longer.
There are some instances wherein you might also be able to qualify for a driving school to have the ticket removed from your record. If that is the case, then your car insurance company would never find about your traffic violation. Thus, it will not affect your auto insurance premium.
What Happens if a Car Insurance Company Filed for Insolvency?
Reader’s Question:
I have auto insurance policy on all of my vehicles. What worries me is the economic stability of the companies we have specifically the car insurance companies. What happens if my auto insurance company filed for insolvency? Will I still be covered or not? I am from Northwest Clackamas, Oregon.
Jefferson
Northwest Clackamas, OR
Interesting question Jefferson! But I am really hoping your auto insurance company will not be insolvent.
To answer your question, I’ve done some research. According to the Oregon Insurance Department, in an event that a car insurance company declared insolvency (or bankruptcy) you really don’t have to worry because you are protected. The fund that gives protection to Oregonians who purchased auto insurance in the state of Oregon is the Oregon Insurance Guaranty Association (OIGA). Said guaranty funds will pay for the covered claims. Limits for the coverage is up to $300,000. However, not all claims would be paid. Said funds would only pay claims that are likely to be paid by the insolvent car insurance company.
Also, you must make remember this only covers residents of Oregon who purchased auto insurance from state-licensed insurers.
For more information about car insurance insolvency, you can ask the Oregon Department of Insurance.
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