Do Points on Your License Increase Insurance?

Car insurance premiums are significantly influenced by a driver’s record, with traffic violations often leading to increased costs. While state motor vehicle departments assign points to track driving behavior, insurance companies utilize their own systems to assess risk, directly impacting what you pay for coverage.

Understanding Driving Record Points

Driving record points are assigned by state motor vehicle departments for various traffic violations. These points accumulate on a driver’s record and serve as an indicator of driving risk. For instance, moving violations like speeding, running a red light, or at-fault accidents typically result in points being added to your license.

The specific number of points assigned for an offense and the rules for their accumulation vary significantly from state to state. Accumulating too many points within a specified timeframe can lead to penalties like license suspension.

How Points Impact Car Insurance Rates

Insurance companies do not directly use the state-assigned driver’s license points to determine your car insurance premiums. Instead, they review your Motor Vehicle Report (MVR), which details your past moving violations, accidents, and other incidents. The violations themselves, rather than the points on your license, are what insurers consider when assessing your risk level and setting rates.

Insurers view these violations as direct indicators of increased risk, leading to higher premiums. They often have their own internal risk assessment models, sometimes referred to as “insurance points” or “surcharge points,” which are separate from the state’s license point system. A minor traffic violation might result in a premium increase of 5% to 30%, while major violations, such as a DUI or reckless driving, can lead to substantial rate hikes or even policy non-renewal.

Duration of Point Impact and Other Factors

The violations that lead to points typically remain on a driver’s official record for a period ranging from two to seven years, depending on state laws and the severity of the offense. For insurance purposes, these incidents can influence premiums for a similar timeframe, often three to five years, though severe infractions may have a longer-lasting impact. Even after points may “fall off” a state’s record, the underlying violations can continue to affect insurance rates for several years.

Beyond driving record points or the violations themselves, several other factors influence car insurance rates. These include your claims history, even if no points were assigned for an incident, the type of vehicle you drive, your age, and your geographic location. Additionally, factors such as your credit score (where permitted by state law) and annual mileage can play a role in determining your insurance premiums.

Reviewing and Addressing Your Driving Record

To understand your driving record, you can obtain a copy of your official Motor Vehicle Report (MVR) from your state’s Department of Motor Vehicles (DMV). Many states offer online portals for checking your driving status and points, often requiring your license number and personal identification. Some states allow you to view a summary for free, while a full report may involve a nominal fee.

In some states, you may be able to mitigate the impact of points or violations by completing state-approved defensive driving courses. These courses can sometimes lead to a reduction in points on your official record or prevent points from being assessed for certain violations. While completing such a course may not always directly reduce your insurance premium, some insurance companies offer discounts or may reduce surcharges for drivers who complete them. The effectiveness and availability of these programs vary by state regulations.