Driver’s license points don’t directly affect your car insurance, but violations that earn those points can increase your premium. Instead of counting license points, insurers review documents called Automobile Reports (MVRs) whenever they apply for insurance or renew their policy. Violations listed in the MVR may cause the insurance company to add an additional fee to your premium for 3-5 years.
What are driver license points?
In most states, the Automobile Department (DMV) tracks driver violations through a point system that assigns a certain number of points to a particular violation. Earn enough points and you can face consequences such as termination of your license or sudden fines to restore your driving privileges. This is a way for state governments to track drivers who are not responsible or cautious and who could improve public safety.
For example, let’s say you get a ticket in New York to discuss it on your mobile phone while driving. In addition to the fines that may be issued, the DMV adds five license violation points to the record. If you violate the Mobile Phone Act again, your total points will be 10. Once you accumulate 11 license points for 18 months, DMV can suspend your license.
However, in 10 states there is no point system. Drivers in Hawaii, Kansas, Louisiana, Minnesota, Mississippi, Oregon, Rhode Island, Texas, Washington and Wyoming do not earn violation points when breaking traffic laws. However, these state violations are still on your driving records and can lead to all the same outcomes, including fines, suspensions, and insurance surcharges.
How do the points affect your premiums?
Driver’s license points do not directly affect car insurance fees. With all states following different points systems and most major insurers operate in multiple states, insurance companies have their own systems for tracking driving violations.
Rather than checking your license points, your insurance company will review your Automotive Report (MVR) every time your policy is updated (or if you request a policy from a new carrier). This document obtained from your state’s DMV or equivalent department contains records of past travel violations, accidents, and other incidents that may affect the risks you present to your car insurance company. If your insurance company finds a violation of your MVR, it may be that your premium comes with an additional fee.
You may hear people refer to airlines that check your “insurance points,” but insurance companies don’t necessarily use points systems and all ratings on driver driving violations look a little different. For example, some airlines do not do business with drivers who have been suffering from recent DUI violations, while others accept your business, but add your fees strongly. That violation has only one value in a particular state’s driver’s licence point system, but insurers see the various levels of risk associated with DUI.
Other results of driver’s license
Depending on the condition you live in, your driver’s license can have a variety of results, including:
- License suspension or cancellation: In most states that use point systems to promote violations, tracking points allow DMVs to reduce driving privileges after an individual has accumulated a certain number of points.
- Recovery fee: Once your license is suspended, you must meet the reinstatement requirements before you can regain your driving privileges. In most cases, these requirements include fees ranging from just $20 to $100 or more.
- SR-22 Insurance Registration Requirements: Drivers with a history of large numbers of license points or serious violations may be subject to the SR-22 rules. This requires insurers to submit a form to their state DMV to ensure they have insurance coverage required by law.
Can I remove the licensing points?
In states with driver license points systems, the most reliable way to get points from a license is to wait until the points expire. In most cases, points are not permanent and age the records after a certain period of time – usually between 3 and 5 years.
Depending on violations and state law, you may be able to remove points before the expiration date by taking an approved defensive driving course or attending a traffic school. However, not all license points are eligible for deletion even in states where this option is provided. Check with your state automotive department for a better understanding of options.
Please note that removing points from your driver’s license does not necessarily reduce your premiums. Some insurance companies may offer discounts or reduce additional fees when they complete a defensive driving course to reduce points. Some airlines do not respect these courses. In addition to investigating point deletion in the DMV, we recommend contacting your insurance company and asking if you can reduce costs by completing the course.
How can I retard my insurance rate?
If your car insurance fees increase due to the points accumulated on your driver’s license, there may be a way to combat this extra fee.
- Ask your insurance company about your defensive driving class. In some states, insurance companies may offer discounts for taking an approved defensive driving or driver’s license education course.
- Take advantage of other discounts: Most auto insurance companies offer many discounts to eligible drivers. Choosing a carrier with many applicable discounts may help you save. Common discounts include bundling, benefits and excellent students. If you are practicing safe driving habits, we recommend considering a telematics program. This allows insurers to track driving habits for potential savings.
- Shop for new policies: If you are doing everything you can with your current insurance policy and your insurance is not down, we recommend comparing estimates from other carriers to see if another company offers lower fees for your situation and coverage needs.
- Improve your credit: In most states, improving credits can reduce car insurance premiums. Carriers usually consider themselves at high risk of guaranteeing inadequate credit drivers, and usually raise the fees for these drivers.
- Increase the deduction amount: If you’re still struggling to find affordable rates, you can consider increasing your deduction. Higher deductions can lower your premiums, but keep in mind that if you have a claim, you will need to pay a higher out-of-pocket fee.
