What Does 2 Points Do to Your Insurance?

Driving record points are a common consequence of traffic violations, impacting a driver’s standing with their state’s Department of Motor Vehicles (DMV). These points track infractions and identify individuals who frequently violate traffic laws. Accumulating points signals an increased risk on the road, aiming to promote safer driving habits.

Understanding Driving Record Points

Driving record points function as demerits assigned by state DMVs following traffic violations. Each infraction, such as a speeding ticket or running a stop sign, carries a specific point value determined by its severity. For example, minor moving violations might result in fewer points compared to serious offenses like reckless driving. These points accumulate on a driver’s record over a specified period, typically ranging from one to three years, though this can vary by state.

The primary purpose of this point system is to monitor driving behavior and, if a certain threshold is met, to impose penalties such as license suspension or mandatory driver improvement courses. While state DMVs assign these points, car insurance companies do not directly use this exact point tally to calculate premiums. Instead, insurers conduct their own assessments of a driver’s history, often reviewing motor vehicle reports (MVRs) that detail traffic violations and accidents.

Direct Impact on Car Insurance Premiums

Receiving two points on a driving record often leads to a noticeable increase in car insurance premiums. Insurance companies view these violations as indicators of elevated risk. Insurers implement surcharges, which are additional fees added to the premium, to offset this increased risk.

Drivers might see their rates climb anywhere from 20% to over 100%. For instance, a two-point violation for reckless driving in some areas could result in an increase of up to 180%. This financial adjustment typically takes effect at the policy’s renewal or when the insurer pulls an updated driving record. The surcharge for such violations is applied to various coverage types, including liability and collision.

Factors Affecting the Premium Increase

While two points on a driving record indicate an increased risk, several other factors influence the exact amount of a premium increase. A driver’s overall driving history is a significant consideration; a clean record prior to the two-point violation may result in a less severe increase than for a driver with multiple past infractions. The specific nature of the violation also plays a role. A minor speeding infraction, for example, might have a different impact compared to a more serious violation like reckless driving, even if both result in two points.

The driver’s age and geographical location can influence the rate adjustment. Younger drivers or those residing in areas with higher accident rates may experience more substantial increases. Each insurance company has its own underwriting policies, meaning the financial impact can differ between providers. Some insurers may offer “forgiveness” programs for minor first-time offenses, potentially mitigating the immediate effect on rates.

Steps to Manage Insurance Costs After Points

After receiving points on a driving record, drivers can take several proactive steps to manage potential increases in insurance costs.
Shop around and compare quotes from multiple insurance providers. Different insurers assess risk and apply surcharges uniquely, so a new policy could offer more favorable rates.
Enrolling in an approved defensive driving course. Such courses may lead to a reduction in the number of points on a state driving record or qualify the driver for an insurance discount, typically 10% for three years.
Increase the policy’s deductible to lower the premium, though this means the driver would pay more out-of-pocket in the event of a claim.
Bundle multiple insurance policies with the same provider often results in discounts.
Maintaining a clean driving record is crucial, as points typically age off a record after a certain period, often three to five years, which can lead to lower rates over time.
Review existing discounts with your current insurer.