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Car insurance points are how insurance companies grade each customer’s risk as a driver. All major auto insurance companies assign points based on certain driver behaviors, like filing accident claims or getting a speeding ticket. The points, in turn, help the insurance companies decide how much to charge drivers for a policy. The more points a driver has, the more they are likely to cost the insurance company, and the more they will have to pay for coverage as a result. Car insurance points are similar to driver's license points, but they're not the same thing.
How Do Car Insurance Points Work?
When you receive a citation for a traffic violation, that information goes into your motor vehicle record (MVR). Your insurer reviews this record each time you renew your policy, and they will add points to your account and adjust your rates accordingly.
Insurers can also add points for:
- An insurance claim
- Bad credit
- Having a lapse in coverage
It’s worth noting that not all insurers specifically use a points system, but they all look at these common factors when determining your rates.
Car Insurance Points vs. Points on Your License
Auto insurance points are not the same as driver’s license points, though there is a lot of overlap between them. Driver’s license points primarily track moving violations, and they’re used to determine whether you can legally have a license. Insurance points track moving violations and other factors, and they’re used to determine your insurance rates.
Driver’s License Points
- In 41 of the 50 states (plus the District of Columbia), the department of motor vehicles assigns and tracks license points. You get points for different traffic violations, such as speeding, or driving under the influence. Once you cross the state’s limit for license points, your license gets suspended.
- The other nine states also keep track of traffic violations to determine when to suspend a driver’s license, but they do not assign a point value to each violation.
Insurance Points
Insurance companies track more than just traffic violations. They also take your insurance claims and accidents into account. If you file a claim for any type of accident, you’ll probably pay more for your next insurance policy.
Even a one-car accident (like hitting a mailbox or a deer) has the potential to raise your insurance premium. But some companies do offer accident forgiveness for your first accident in a period of 3-5 years, so that can prevent your rates from going up.
How to Check Your Car Insurance Points
You can check your car insurance points by simply calling your auto insurance company and asking. And if your insurer doesn’t specifically use points, they can at least break down the factors that led to your current rates.
You can also check your TransUnion auto insurance score for free here on WalletHub. This score, rather than being based mainly on your driving record, is based on the information on your credit report, and shows how risky you are to insure. Higher auto insurance scores lead to lower premiums.
People also ask
What happens if you get 5 points on your license?
If you get 5 points on your license, your car insurance premiums will likely increase and you might have your license restricted, suspended, or revoked, depending on your state. Driver's license points are used to track violations, so accumulating 5 points is a sign of increased risk for insurers.
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...
read full answer by Lilah Butler, Car Insurance WriterHow do South Carolina drivers license points work?
South Carolina driver’s license points work as part of a system that identifies and takes action against high-risk drivers by assigning a specific number of points for different types of traffic violations. In South Carolina, drivers accumulate two points for minor violations like driving in the wrong lane. For major violations, like reckless driving, drivers will get six points.
Driver’s License Points Per Violation in South Carolina
| Violation | Number of Points Assigned |
How do Michigan drivers license points work?
Michigan driver’s license points work as part of a system that identifies and takes action against high-risk drivers by assigning a specific number of points for different types of traffic violations. In Michigan, drivers accumulate two points for minor violations like having an open container of alcohol in the vehicle. For major violations, like reckless driving, drivers will get six points.
Driver’s License Points Per Violation in Michigan
| Violation ... | Number of Points Assigned |
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