Parking Tickets and Insurance Rates They aren't usually a factor, but be careful.
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Luckily, there is no direct connection between parking tickets and insurance rates. Because they aren't considered moving violations, as long as your parking tickets are dealt with judiciously, your insurance rates will remain unchanged. With that being said, there are still plenty of insurance-related arguments for dealing with parking tickets before they become overdue.
Parking Tickets Issued From the State
Unpaid parking tickets issued from a state authority (like from a parking meter violation) will eventually result in a hold or suspension on your license if they go unresolved for too long. A likely scenario for a person with too many unpaid tickets is that, when his or her license expires, he or she will be unable to renew it without paying the fines. Depending on the severity of the ticket, a mandatory suspension may be ordered. Insurance companies view license suspensions—even if they are just from parking tickets—warily. Higher rates are almost sure to result from any license suspension.
Parking Tickets Issued From a Private Organization
If the parking ticket you received is from a private entity such as a pay-lot, you should still act in a timely fashion if you receive a ticket. An unpaid parking ticket from a private pay-lot will likely go to a collection agency if ignored. More often, state governments are utilizing collection agencies to recoup unpaid fines as well. Even if the original ticket was for a paltry $25, your credit score could be severely damaged by a mark on your credit report from a collection agency.
A below average credit score is more than just a nuisance—it's expensive! For people with bad credit, loan and mortgage rates are worse, rentals are harder to come by, and insurance rates are higher. For more information, read our article about credit scores and insurance.
If you receive a ticket parking somewhere for too long or in the wrong zone, the best thing to do is pay it. It may be satisfying to crumple up a parking ticket and forget about it, but the victory will be fleeting. Sooner or later, the unpaid fines will catch up to you. And when they do, they're going to cost a lot more than their original face value.
