How much do points on a license affect car insurance rates?

The connection between the number of points on your license and insurance is simple — the more points you have, the more expensive your car insurance rates will be. 

However, your rates increase depending on where you live and your car insurance company.  Keep reading to find out how much your rates will increase after receiving points on your license. This article covers how to calculate car insurance increases related to points on your driving record for different moving offenses.

Will my car insurance rates increase due to points on my driver’s license?

The short answer is yes, but there are some particulars. For example, your rates will not necessarily go up if the number of points you have is below the minimum threshold your insurance company allows. 

In other words, if you have two points on your driving record, but your insurance company doesn’t increase rates until you receive three points, your car insurance rates will remain unchanged unless you reach three points.

Be aware that laws regarding car insurance increases vary by state. If you move to another state, you may also want to change your car insurance to ensure you’re getting the best deal.

How much will my insurance rates increase if I have points on my driver’s license?

Exactly how much points on your license affects insurance will depend on the state and your insurance company. It also can vary by the offense itself. With some companies, a violation worth the same number of points may not increase your rates by the same amount.

For example, speeding over 10 mph in California and disobeying a traffic control signal is worth one point each. However, disobeying a traffic control signal is considered the slightly more severe violation of the two. Therefore, your insurance rates could increase more for disobeying a signal than if you were speeding. 

In Florida, disobeying a traffic control signal and reckless driving are worth four points each. However, reckless driving is considered the more severe offense. So, being found guilty of reckless driving would raise your rates more than the former offense.

Because speeding violations will add points to your driving record, it’s important to know that speed limits for similar roads differ depending on the state you’re driving in. So pay attention to the legal and safe speed to drive your car in your state to avoid penalties and increased car insurance rates.

What types of offenses will add points to my driver’s license?

Depending on the severity of the moving violation, the number of points you receive differs from state to state. However, certain offenses will almost certainly add points to your record. These include:

• Drunk driving
• Highway racing and reckless driving
• Driving with a suspended license
• An at-fault accident
• Following another vehicle too closely
• Speeding

This is not a complete list of violations that add points to your driving record. Other offenses could cause you to gain points, so speak to your insurer if you have questions about something in particular.

Read more:

• How do you get rid of car insurance points?
• What could cause me to get points on my car insurance?

Do minor offenses add points to my driver’s license?

Some insurance companies consider certain offenses minor enough that no points are added to your driving record, even if you have to pay a fine. For example, most parking violations won’t add points to your record.

The key term is “moving violation,” meaning your car needs to be in motion when the offense was committed for points to be added to your driving record.

How can I decrease the number of points on my driver’s license?

While it varies somewhat by state, there are a few general things you can do if you want points taken off your driving record.

The most reliable method is consistently practicing safe driving habits to avoid receiving any moving violations. Every year you go without a moving violation, a certain number of points will be taken off your driving record. In most states, three points are taken off your driving record every year you drive without any moving violations.

You can also try contesting the offense in traffic court. If you’re found not guilty, no points will be added to your driving record. However, this may backfire if you’re found guilty, as being guilty in court may affect your record more than if you simply paid the ticket.

Many states offer the option of taking a defensive driving course once every five years. If you pass this course, you can avoid points or have points removed for former offenses.

There is a difference between the state taking points off your driving record and when your insurance company forgets offenses. Even if points are taken off your driving record, your insurance company will typically wait between three and five years to expunge offenses from their records.

Case Studies: Impact of License Points on Car Insurance Rates

Case Study 1: Minor Traffic Violation With a Single Point

John received a minor traffic violation, resulting in a single point on his license. The violation was classified as a low-risk offense, such as a minor speeding ticket. In this case, John’s car insurance rates remained relatively unaffected, as a single point may not significantly impact premiums with some insurance providers.

Case Study 2: Accumulation of Multiple Points

Sarah accumulated several points on her license over time due to multiple traffic violations. These violations included instances of speeding, running red lights, and reckless driving. The total number of points on Sarah’s license reached a significant level. As a result, Sarah’s insurance premiums increased as her insurer perceived her as a higher-risk driver due to her pattern of violations and associated points.

Case Study 3: Serious Offense With License Points

Mike was involved in a serious traffic offense, such as driving under the influence (DUI) or causing an accident resulting in injuries. These offenses resulted in a substantial number of points on his license. Mike’s insurance provider considered these serious offenses as a significant risk factor, leading to a substantial increase in his car insurance rates.

Case Study 4: Insurance Provider Policies and Point Systems

Samantha received points on her license due to minor traffic violations, but her insurance provider has specific policies and a point system in place. Samantha’s insurer evaluates the severity and frequency of violations based on their point system. While Samantha received points, her insurer’s evaluation indicated a minimal impact on her car insurance rates, as the violations were relatively low-risk.

Final Thoughts on How Points on Your Driver’s License Can Increase Your Rates

If you receive points on your driver’s license for a moving violation, you can reasonably expect your insurance rates to go up. However, certain variables may allow you to avoid a rates increase or remove points from your driving record altogether. 

For example, points tend to be treated differently across states. Be aware of the particular system your state uses to assign points to various offenses. Finally, understand how your insurance policy works so you can have the best possible understanding of what will happen if you receive too many points on your driving record.