What is the best car insurance for drivers with points?

One point is unlikely to affect a driver’s insurance costs, if it is the only point on the driver’s record. One point is assigned for a minor violation, like driving with broken taillights or an expired license, which the insurance company might not even hear about it. And if the insurer does not tally the point, it will not result in a higher premium.… read full answer

Forty-one of the 50 states use a license-points system. Drivers get points for different traffic violations, such as speeding and driving under the influence. The other nine states (Hawaii, Kansas, Louisiana, Minnesota, Mississippi, Oregon, Rhode Island, Washington, and Wyoming) keep track of the number of traffic violations you have, instead. Then your license will be suspended if you end up with too many violations. The only difference is that those nine states don’t use a publicly defined points system, where specific traffic violations equal a certain number of points toward a suspended license.

The long-term effects of 1 point on your license

Insurance companies don’t track state license points, but they definitely care about the traffic violations that earn you those points. So your license points and your insurance costs are related. In fact, insurance companies have their own points systems for policy pricing, which consider serious traffic violations, claims history, and more.

That’s important because an additional violation or claim could potentially raise your insurance rates by 50% or more, if you already have a point on your record. Having a point on your record means that you’re one point closer to exceeding your state’s point limit and losing your driving privileges.

In some states, a defensive driving course can get points wiped off your record. Once you complete the course, your state removes a set number of points from your license. However, not all states have a point reduction program, including some states that use points to track violations. That’s why it’s still important to pay your ticket(s) on time and do your best to abide by all traffic laws if you want to increase your chances of avoiding any further state or insurance penalties.

Two points will increase a driver’s insurance costs by roughly 20% to 100%, depending on the state, insurance company and type of violation. Two points are assigned for relatively minor traffic violations, like driving at night with no headlights or making an illegal U-turn. Two points might even be the minimum number of points you can get, depending on where you live. Some states assign points by a factor of two, skipping odd numbers in their points system. The specific cost increase will vary depending on the driver’s insurance company and home state – insurance companies don’t count license points specifically, so a driver can’t be sure how much their insurance company will charge them for the violation.… read full answer

Instead, license points are tracked by your state’s department of motor vehicles in 41 of the 50 states. You get points for different traffic violations, such as speeding and driving under the influence. The other nine states (Hawaii, Kansas, Louisiana, Minnesota, Mississippi, Oregon, Rhode Island, Washington, and Wyoming) keep track of the number of traffic violations you have and suspend your license if you have too many.

The long-term effects of 2 points on your license

Your insurance company doesn’t track your state license points, but they definitely care about the traffic violations that earn you those points. So your license points and your insurance costs are related. In fact, insurance companies have their own points systems for policy pricing, which take into account serious traffic violations, claims history, and more. Any additional violation or claim can further raise your insurance rates by up to 50% or more, on top of your already increased rate.

However, your state’s tracking system has far greater consequences than your insurance company’s. If your company penalizes you for a violation, the worst thing that will happen is you pay a lot of money for car insurance. If you earn too many license points, you can expect to lose your license completely.

Additional points on your record increase the odds that your next violation will result in license suspension, by bringing you closer to exceeding your state’s point limit. Two points will stay on your license anywhere from one to six years, depending on state laws – three to five years is typical.

If you have two points on your license, be extra careful in the future to avoid another violation. In some states, a defensive driving course can get two points (or more) wiped off your record, but not all states have a point reduction program. And you’re limited in how often you can use the driving course to remove points – it’s normal to have to wait at least one year before you can get more points removed. That means it’s still important to pay your ticket(s) on time and do your best to abide by all traffic laws. Doing so will increase your chance of avoiding more state or insurance penalties.

If you get 3 points on your license, your car insurance premiums will likely increase and you will be closer to the threshold for a license suspension, depending on your state. Driver’s license points are used to track violations, so accumulating 3 points is a sign of increased risk for insurers.… read full answer

Each state has a different threshold for how many license points lead to a specific penalty, but accumulating points is never good. The table below shows the consequences of having 3 points in the five most populous states.

Penalties for 3 License Points by State

Car Insurance Premiums for Drivers with 3 Points

The exact amount that your premium increases after accumulating 3 points will depend on your state, insurance company, and individual driving record. For example, one speeding ticket will increase your rate by 25% on average, whereas a DUI conviction will generally raise your premium by 79%.

Since each insurer treats violations differently, it’s a good idea to compare quotes if you recently had points added to your license. Given the change in your risk factors, it might be cheaper to switch insurers rather than stick with your current company.

To learn more about how license points work in your state, check out WalletHub’s complete guide.