DMV Points vs. Insurance Points Defined (2024)
DMV points vs insurance points is simple. DMV points affect the status of your license and driving privileges, while insurance points raise your rates. Points from a driving offense like a DUI can raise your rates over $1,000 more a year.
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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 23, 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 23, 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
- DMV points are what the DMV adds to your driving record after traffic violations.
- The insurance points system is when insurers add points to your insurance record.
- In some cases, you may remove points earlier by taking a defensive driving course or contesting a ticket.
Are you stressed trying to figure out what the difference is between DMV points vs insurance points? What do points on your insurance even mean? Our guide breaks down the difference between license points vs insurance points, as well as how DMV and insurance points work. Read on to learn more.
If the DMV point system is ruining your insurance rates, start shopping for cheap auto insurance rates right away. Enter your ZIP code in our free tool above to get started.
DMV Points and Insurance Points
So what is the difference between auto insurance points vs DMV points? How do insurance points work in contrast to DMV points? The quick explanations below should help.
- How do the DMV and points work? DMV points are what the DMV adds to your driving record after traffic violations. If you accumulate enough points, your license may be revoked.
- What are the insurance points? The insurance points system is a system wherein insurers add points to your insurance record. While these points don’t affect your license, they will raise your insurance rates.
Keep reading to see how many insurance points is too much, and what you can do about it.
How many points raise your insurance?
How will points affect auto insurance rates? Most drivers wonder how many points affect insurance. Common questions are, “How much will my insurance go up with 3 points? How much do 4 points affect insurance? Is having 2 points on your license bad?”
Unfortunately, there is no clear cut guide on how much points will raise your rates. There are a number of factors that influence how much insurers charge for something like 4 points on a license insurance increase.
The two most important factors are the nature of the violation behind the point and the time that passes between points. So if you are wondering, “Does a 0 point ticket affect insurance?”, the answer is likely no. For example, violations like a parking ticket won’t raise your rates but running a red light will.
The following table explains how major traffic violations can affect your rates.
Average Annual Auto Insurance Rates by Driving Record
| Insurance Companies | Average Annual Auto Insurance Rates with a Clean Record | Average Annual Auto Insurance Rates with 1 Accident | Average Annual Auto Insurance Rates with 1 DUI | Average Annual Auto Insurance Rates with 1 Speeding Violation |
|---|---|---|---|---|
| USAA | $1,933.68 | $2,516.24 | $3,506.03 | $2,193.25 |
| Geico | $2,145.96 | $3,192.77 | $4,875.87 | $2,645.43 |
| American Family | $2,693.61 | $3,722.75 | $4,330.24 | $3,025.74 |
| Nationwide | $2,746.18 | $3,396.95 | $4,543.20 | $3,113.68 |
| State Farm | $2,821.18 | $3,396.01 | $3,636.80 | $3,186.01 |
| Average | $3,102.08 | $4,076.60 | $4,895.38 | $3,641.34 |
| Progressive | $3,393.09 | $4,777.04 | $3,969.65 | $4,002.28 |
| Travelers | $3,447.69 | $4,289.74 | $5,741.40 | $4,260.80 |
| Farmers | $3,460.60 | $4,518.73 | $4,718.75 | $4,079.01 |
| Allstate | $3,819.90 | $4,987.68 | $6,260.73 | $4,483.51 |
| Liberty Mutual | $4,774.30 | $6,204.78 | $7,613.48 | $5,701.26 |
Not only do these offenses add points to your license, but your insurance rates will go through the roof.
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Finding Out How Many Points are on Your License
How much do points affect insurance? It depends how many points are on your license. The best way to find out how many points you have is to contact your state DMV.
Contacting the DMV will also help find answers to state questions like, “How much do 2 points affect insurance points in NJ?” You can also find out how many points are permissible in your state before your license is revoked.
“Can I keep auto insurance while my driver’s license is revoked?” The answer is no. Insurers will cancel your policy if you have a revoked license.
Frequently Asked Questions: DMV Points vs Insurance Points
Do you still have questions about how do DMV points affect insurance? Read on to see what others are asking.
How do insurance companies find out about tickets?
Every time you renew your insurance, companies check your Motor Vehicle Record (MVR) at the DMV to see if any new traffic violations have occurred. So if you get a speeding ticket, your rates won’t go up right away until your six-month or yearly policy renewal.
How do I remove points from my driving license?
In some cases, you may remove points earlier by taking a defensive driving course or contesting a ticket and getting it removed. Getting a ticket dropped will also make sure you don’t get insurance points added as well, such as Progressive insurance points.
How long do points stay on your license?
After a while (usually at least a year), points will cease to matter on your driving record, although a record of them will remain. In some states, a charge like a DUI will stay on your license for years.
How many insurance points for a speeding ticket?
Wondering how many points is a speeding ticket? It depends on what state you live in, but generally, a speeding ticket will add about two points to your license. Depending on your insurer, the insurance points for speeding will likely add at least $100 onto your annual premium.
How many points for driving without insurance?
Once again, this depends on the state. However, driving without insurance will add a high number of points to your license. According to NOLO, driving without insurance may result in the immediate revocation of your license and hefty fines.
We hope you have a better understanding of how DMV points affect your insurance points and rates.
If you find that your insurance rates have gone up after DMV points, it’s important to shop around to find affordable auto insurance rates. Enter your ZIP code in our free tool below to get great auto insurance quotes.
Frequently Asked Questions
What are DMV points and insurance points?
DMV points, also known as driver’s license points, are a system used by the Department of Motor Vehicles to track and penalize drivers for traffic violations. Insurance points, on the other hand, are a system used by insurance companies to determine the risk profile of a driver and calculate premiums based on their driving history.
How do DMV points and insurance points differ?
DMV points are primarily concerned with licensing and enforcing traffic laws, while insurance points are used by insurance companies to assess risk and set premium rates. DMV points can lead to the suspension or revocation of a driver’s license, whereas insurance points may result in higher insurance premiums.
How are DMV points assigned?
DMV points are typically assigned when a driver is convicted of a traffic violation, such as speeding, running a red light, or reckless driving. The number of points assigned varies depending on the severity of the offense. Accumulating too many DMV points within a specific timeframe can result in license suspension or other penalties.
How are insurance points determined?
Insurance points are determined by insurance companies based on a driver’s history of accidents, moving violations, and claims filed. Each insurance company has its own system for assigning points, and the number of points assigned can vary. Generally, more severe violations and accidents result in higher insurance points.
What are the pros and cons of DMV points and insurance points?
Pros of DMV points:
- Encourage safe driving behavior by penalizing traffic violations
- Provide a standardized system for assessing driving records
- Can help identify high-risk drivers and remove them from the road
Cons of DMV points:
- May result in license suspension or revocation, impacting daily life and employment
- Punitive approach may not address the underlying causes of unsafe driving
- Lack of consistency across different states in terms of point assignments
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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.