Does Removing Points Lower Insurance?

Driving record points are a common concern for vehicle owners, directly influencing how insurance companies assess risk. These points, assigned for traffic violations, can lead to increased auto insurance premiums. This article explores the relationship between driving points, their removal, and the impact on insurance costs.

How Driving Record Points Affect Insurance

Driving record points serve as a system used by motor vehicle departments to track unsafe driving behaviors. They are assigned for various traffic violations, from minor infractions to serious offenses. While the specific point system varies by jurisdiction, points are demerits that reflect a driver’s adherence to traffic laws.

Insurance companies do not directly use these state-assigned points to calculate premiums. Instead, they review a driver’s Motor Vehicle Report (MVR), which details past moving violations, accidents, and other incidents. Insurers interpret these violations as indicators of increased risk, viewing drivers with a history of infractions as more likely to be involved in future accidents. Consequently, a driving record with multiple violations often results in higher insurance premiums.

Strategies for Managing Driving Record Points

Drivers have several methods to manage or reduce points on their driving record. One common approach involves completing approved defensive driving courses. These courses, often offered online or in person, can sometimes lead to a reduction in assigned points or prevent new points from being added, depending on state regulations.

Another way points are managed is through expiration. Points typically remain on a driving record for a specified period, after which they are automatically removed. Some states may also reduce points if a driver maintains a clean record for a certain duration.

Contesting a traffic ticket can also prevent points from being assigned to a record. If a driver successfully challenges a citation in court, the associated points will not be added. Maintaining excellent driving behavior naturally prevents the accumulation of new points.

Assessing the Impact on Insurance Rates

Removing points from a driving record is beneficial, but the immediate impact on insurance premiums is not always guaranteed. Insurance companies base their rates on the underlying violations documented in the Motor Vehicle Report (MVR), not just the points themselves. Even if points are removed, the conviction for the traffic violation may still appear on the MVR and influence premium calculations.

The timing of point removal and policy renewal also plays a role. Changes to a driving record may not be reflected in insurance rates until the policy is renewed. Insurers typically review driving records periodically at each renewal cycle. The severity of the original violation can have a lasting effect; serious infractions can lead to higher premiums for several years, irrespective of point removal.

Insurance company policies vary in how they weigh past violations. Some insurers may offer “good driver” discounts or reduce surcharges if a driver maintains a clean record or completes an approved defensive driving course. While point removal may not instantly lower premiums, it contributes to a cleaner driving history, which can eventually lead to more favorable rates and eligibility for discounts.

Additional Factors Affecting Insurance Premiums

Beyond driving record points, numerous factors influence auto insurance premiums. A driver’s overall driving history, including past accidents and claims, regardless of points, is a significant determinant of rates. The type of vehicle insured also plays a role, with factors like the make, model, safety features, and theft risk impacting the cost of coverage.

Geographic location is another important consideration, as premiums can vary based on the garaging address, local traffic density, and crime rates. Annual mileage and the primary use of the vehicle also affect risk assessment. Age, driving experience, and in some states, credit score, can influence the premium charged by insurance providers.