Street Racing Can Cause Car Insurance Premiums To Soar

Drivers like to go fast. Some people especially younger teen drivers often engage in street racing which is illegal in all 50 states. If you have been given a ticket for illegal street racing then you will face financial consequences from your car insurance company.
For example, a person who was given a ticket for racing and speeding when driving 85 in a 35 mile zone they will face first a fine for speeding.

You will also have to answer to your car insurance company who will increase your premiums the next time your policy comes up for renewal.
Car insurance companies typically have exclusions written in their policies that drivers who are involved in a car accident while street racing or driving excessively fast will have their claims denied. This means that speed can not only kill but can leave you broke and penniless.
Most people who get a ticket will see their insurance premiums increase by more than 30% and those who do become involved in car accidents while racing or speeding can see their premiums increase by 200%. This is due to the fact that the behavior is deemed to be reckless and insurance companies want to minimize their risk.

They will still for the most part insure these drivers. However, people who were racing and caused huge accidents with injuries will most likely have their insurance policies cancelled.
Insurance companies know that speed is often a factor in accidents so you will be assigned insurance points. For example, in the state of North Carolina a driver would receive twelve points for an arranged street race that they participated in. If they were racing of their own free will on the street then they would receive ten points.
The more insurance points that a person has the worse they will look to their insurance company when their policy comes up for renewal. Every point increases their premiums so it is important to minimize the number of them that are accrued.
The driver would then feel the financial pinch of their transgressions because their insurance premiums would soar by 260 to over 340 percent.

If no one is hurt then typically people will not be arrested if they are engaged in pre-arranged or willful street racing.
Most drivers will have their license suspended and face a fine up to $1,000 so it does not pay to race anyone with your car. Each state has different laws regarding street racing. Insurance companies do provide a list of insurance point schedules for such offenses. Some states allow police officers to impound vehicles that have been involved in street racing so it is important for all drivers regardless of age to take the penalties seriously.