Do points affect auto insurance rates?
Four points are added to your driver’s license when you have been convicted of certain traffic violations. Points on your license indicated risky driving habits and will drive up your rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jun 22, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 22, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Drivers with fewer points on their license are considered less of a risk by auto insurance companies
- Some points can stay on your insurance record for years
- There are steps you can take to lower and remove points that affect your auto insurance rates
If you have points on your driving record, then you’ve likely seen your auto insurance rates go up. Accumulating as few as four points on your license can increase your insurance rates, and the more points you have, the higher your rates will be.
Insurance companies have different ways of deciding how points affect auto insurance rates. If you’re a high-risk driver, it’s important to compare quotes from multiple companies to find the most competitive rates.
You can also keep your rates low by attending a driver’s education course and maintaining a clean driving record for the next few years. Keep reading to learn more about how points affect car insurance rates and the steps you can take now to start reducing the points on your license.
What types of points affect auto insurance rates?
Insurance companies consider two types of points when determining your auto insurance rates: driver’s license points and car insurance points.
Driver’s License Points
You will accumulate driver’s license points for most traffic violations. The most common traffic violations that raise your points and your auto insurance rates are:
- Speeding
- Drunk driving
- Negligence resulting in an auto accident
- Disobeying traffic laws
The driver’s license point system varies by state. For example, most states will add an additional point to your license for every 10-15mpg you’re caught driving above the posted speed limit.
Anything considered reckless could result in doubling or even tripling the number of points added to your record. More severe violations that cause accidents, injuries, or result in criminal convictions will add even more points to your driving record.
Most states have a cap on the number of points you can accumulate before your license is suspended, while some offenses can lead to immediate suspension. Auto insurance with a suspended license is even more expensive, so be aware of how many points you have against your license.
Car Insurance Points
Insurance companies use a different point system than the one on your driving record because there are additional traits and behaviors that insurance companies consider along with your driving habits.
Insurance companies maintain a point system to assess the risk of insuring a driver. Many factors that are unrelated to your driving record can impact your overall point score, including your age and address.
While there isn’t much you can do about how old you are or where you live, there are issues you can control. The most common factors that will add points to your insurance score are:
- Making late payments
- Having a drop in your credit score
- Filing a claim
While you never want to do anything that might cause your auto insurance rates to increase, the good news is it’s not permanent. Points lower with time, and most points will cycle off your record within 3-5 years.
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Will my insurance company allow me to see my points?
Whether your insurance company allows you to see any points you’ve accumulated depends on the company. Some companies are willing to share this information when you request it.
Insurance companies are not required by law to share why they increase your rates. However, you can anticipate rate increases by keeping track of your driving record. If you have a series of traffic violations, you shouldn’t be surprised if you see a rate increase during the next renewal period.
If you feel you have an unwarranted increase and your company will not share why they’ve increased your rates, you can file a complaint with your state Department of Insurance.
Will my insurance increase with four points on my license?
Insurance rates often go up when you get a new car. However, your insurance rate may not rise much after getting four points on your driver’s license. Most companies use the number of accidents you had in previous years to determine how much your premium should be raised. If you don’t already have auto insurance, it is best to wait until you need it to purchase coverage.
What steps can you take to reduce points on your license?
If points are added to your driver’s license, some states will lower or even remove points after you complete a defensive driving or another type of driving education course. You can also reduce points on your driving record by being proactive and maintaining your vehicle. For example, repairing a broken tail light right away will reduce the odds of a ticket and point increase.
In addition to driving courses and maintaining your vehicle, be sure to keep track of any points on your driving record. You can request a copy of your record from the local DMV and ensure everything is correct and accurate. If any points are mistakenly attributed to your record, contact your state Department of Insurance.
BQ: The best way to lower your points for car insurance is with time and patience. Some insurance points can stay on your record for up to 10 years, but typically they disappear within 3 to 5 if you maintain a good driving record.
The best strategy is to set a goal to keep your driving record clean and always make your car insurance payments on time. Some points may start to clear within a year of maintaining a good record.
Where To Find Driver’s Education Courses
The best way to avoid unnecessary points on either of your records is to maintain a safe driving record. Locally, you should be able to find classes through automobile clubs and community colleges. If your city has a center for continued adult learning, you may also find courses there. Courses vary by organization, and some can be as short as a few hours, while others may take several sessions to complete.
To find classes online, check with your state’s motor vehicle division or safety organization. Drivers who are aged 50 and older can also find courses through the AARP.
Always check with your insurance company to verify the courses you are taking qualify for discounts on your policy.
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How Points Affect Auto Insurance Rates: What You Need to Know
Understanding how both point systems work can help you make informed decisions moving forward. There are demographics beyond your control when it comes to insurance points, but you can focus on the things you can control to ensure you don’t gain points on either record.
Keeping a clean driving record, taking a defensive driving course if necessary, and avoiding claims will ensure you can always find the most affordable auto insurance rates.
Frequently Asked Questions
Do points affect auto insurance rates?
Yes, points can affect auto insurance rates. Points are typically assigned to drivers who have been convicted of certain traffic violations, such as speeding, running a red light, or reckless driving. Insurance companies consider points as indicators of increased risk and may adjust premiums accordingly.
How do points affect auto insurance rates?
The impact of points on auto insurance rates can vary depending on several factors, including the number of points accumulated, the severity of the violations, and the specific policies of the insurance company. The more points you have, the higher your insurance rates are likely to be. Accumulating points suggests a higher likelihood of future accidents or claims, which can result in increased premiums.
How long do points affect auto insurance rates?
The duration for which points affect auto insurance rates can vary depending on the insurance company and the specific violations. In general, points remain on your driving record for a certain period, usually between three and five years. During this time, they are typically considered by insurance companies when calculating your rates. However, the exact timeframe can vary by jurisdiction and insurance company, so it’s important to check with your specific provider for accurate information.
Will points always increase my auto insurance rates?
Accumulating points on your driving record does not automatically mean your auto insurance rates will increase. The impact on your rates will depend on various factors, including the number of points, the severity of the violations, your overall driving history, and the policies of the insurance company. While points generally indicate an increased risk, some insurance companies may offer forgiveness programs or other incentives that mitigate the impact of points on rates.
Can I lower my auto insurance rates if I have points?
It may be possible to lower your auto insurance rates even if you have points on your driving record. Here are a few strategies that may help:
- Safe driving: By maintaining a clean driving record and avoiding further traffic violations, you can demonstrate to insurance companies that you are a responsible and low-risk driver. Over time, this may lead to lower premiums.
- Defensive driving courses: Completing a defensive driving course can sometimes earn you a discount on your auto insurance rates. Check with your insurance provider to see if they offer any such discounts and if you are eligible to participate.
- Shop around: It’s always a good idea to compare quotes from multiple insurance providers. Different companies have varying approaches to rating and considering points. You may find that some companies offer more favorable rates despite having points on your record.
Can points be removed from my driving record?
The process for removing points from your driving record can vary depending on your jurisdiction. In some cases, points may automatically expire after a certain period, such as three to five years, without any further action needed. However, it’s important to note that the specific regulations and procedures for point removal differ by location. To learn about the rules and potential options for removing points from your driving record, it’s advisable to contact your local Department of Motor Vehicles (DMV) or relevant authority.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.