I recently received information from an e-mail concerning insurance for traffic tickets, of all things. Apparently, this is a new type of scam insurance where you pay $12.95 a month and they will pay the fines for up to 7 traffic violations per year. Sounds great, doesn’t it. However, this will ultimately lead to more traffic tickets being issued (which is a scam in and of it self). Traffic Tickets are a Multi-Billion Dollar Industry:
Traffic tickets are a multi-billion industry. They have virtually nothing to do with highway safety, but they have everything to do with money….No one knows how many traffic tickets are actually issued. Many local units of government deliberately hide this information so they don’t have to split their traffic ticket revenue with the state. Not including parking tickets, we can estimate that somewhere between 25 and 50 million traffic tickets are issued each year. Assuming an average ticket cost of $150.00, the total up front profit from tickets ranges from 3.75 to 7.5 billion dollars. If just half of these tickets result in insurance surcharges (typically at least $300 over a period of three years), you can add another 3.75 to 7.5 billion dollars in profit for insurance companies.
However, TraffiCare, which provides traffic ticket insurance, just adds fuel to the fire. In essense, they are promoting the idea that you can pay a monthly costs and think that you can get away with committing a crime. That’s right, moving traffic violations are no different than any other law. Either you obey the law or you are a criminal. If you speed you are breaking the law.
The purpose of insurance is to cover unusual risk for things that you have no control. Such things as natural disasters, thefts, auto collision, et cetera. Here’s a simple way to save money and avoid this insurance scam: drive the speed limit and obey the law!
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