Consequences of a Parking Ticket on Insurance

Consequences of a Parking Ticket on Insurance
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Unlike other vehicle violations, the parking ticket has little, if any, impact on your insurance policy and its premium. Parking tickets are non-moving violations that are mostly incurred while the driver is away from the vehicle. Though the parking infraction may be against the area’s rules, the infraction does not cause physical harm to the driver, his passengers or other parties, nor does it cause damage to the vehicle. As a result, insurance companies are, generally, unconcerned with your parking violations, unless they get out of hand.

Suspension

When the parking ticket is paid in a timely fashion, the violation simply goes away. It is not recorded on your driving or accident histories, nor is it reported, in any fashion, to your insurance company. This minor city violation remains a quiet kept secret between you and the city. However, if you obtain many parking violations or fail to pay any of those violations, the issuing city may prevent you from renewing our vehicle registration and tow your vehicle. Some states, including New Jersey and Illinois, will even suspend your driver’s license privileges until the fines are paid. While the blocked vehicle registration and towed vehicle will not impact your insurance policy, a suspended license will not only impact your insurance premium -- it could make you an unacceptable risk.

Increase

A license suspension resulting from parking violations has the same impact on the policy as a suspension resulting from speeding violations. The suspended license means the driver is unable to lawfully operate on the roadways. The insurance carrier may increase the policy premium to accommodate for the increased risk. While newly issued insurance policies usually see the increase within the first 60 days of the policy, policies that are older than 60 days may not see the premium increase until the policy’s renewal.

Cancellation

The underwriting guidelines of some insurance carriers do not permit companies to insure drivers who do not hold valid driver’s licenses. Depending on the driver’s policy specifics, the carrier may not be able to insure a policyholder with a past suspension, even when the license’s current status is valid. If the license suspension from the parking violation occurs while insured with these carriers, it is possible that the insurance carrier will cancel the policy midterm or not renew the policy at the policy’s expiration.

Considerations

License suspensions for unpaid parking tickets have become a common collection method amongst many major cities and populated states. Along with New Jersey and Illinois, New York, Georgia and Los Angeles are just some of the places in which some cities and counties, if not the entire state, enforce license suspensions to collect unpaid parking violations. To avoid premium increases and adjustments for parking violations, pay the violations as swiftly as possible and communicate with the issuing city when you cannot.