Most people tell you that getting caught speeding and receiving a speeding ticket will have a negative impact on your driving report. It could possibly raise your insurance rates especially if you are a multiple offender. But, very few people actually sit down and factor out what you earn, if anything, when you arrive at your destination a little early thanks to speeding.
The Cost Benefit Analysis Of A Speeding Ticket
I have been wanted to show exactly what little financial benefit speeding has on your life for a while now. So, let’s take my commute into work every day as an example. I work 20 miles away from my home. Most of my commute is on a two lane divided highway where the speed limit is 55mph. For simplicity’s sake, let’s just say that the speed limit is 60mph which would mean that I could cover the distance of a mile every minute. If I drive 70mph instead of 60mph in to work, I can reduce my 20 minute commute down to 17 minutes. So, if I earned approximately $40 per hour before taxes, I saved approximately $2 worth of my time by arriving three minutes earlier than normal, and that is assuming that I was productive during those three extra minutes earning at least my base pay of $2 per minute.
The True Cost Of A Speeding Ticket
Most people realize that speeding, which I am not condoning, can cost drivers hundreds of dollars. Most states have severely cracked down on speeding and raised the fines that are levied against speeders that are caught. In many cases, speeding 10mph over the posted limit will earn you at least a $100 ticket. In many states, speeding over 15 to 20mph over the posted limit can add reckless driving charges to a speeding ticket which of course increase the total amount that will be due on your ticket.
The Damage May Come With Your Insurance Company
While a speeding ticket in and of itself may not warrant a premium increase from your insurance company for the first offense, you may see your insurance rates rise after having multiple speeding tickets. This could happen especially if you have a speeding ticket or two within a close time period. The insurance companies keep how they calculate your insurance premium a closely guarded secret, but a rate increase is something that can follow you for years while you try to rebuild your driving reputation.
Speeding is, of course, not only dangerous and illegal, but it does not have a solid foundation from a cost perspective. A speeding ticket costs too much money for far too little gain. Even if you could capitalize on the time you saved by making it to work earlier than normal, the gains would not offset the potential negative cost implications.
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