How Can Points Affect My Car Insurance Rates?

By Sharon Gibson Posted in Car Insurance News

Let’s Talk Driving With Points On Your Driving Record

The points system is managed by each state’s Department of Licensing. Exceeding point allowance within a time period will result in suspension of your driver’s license. However, the way your car insurance company uses this information varies.

Having recent violations on your driving record will more than likely cost you more on car insurance premiums. However, there are insurance companies who treat these points differently. Some insurance companies will “forgive” a violation or accident if you take and pass a defensive drivers course. As in most states, taking these courses reduce the number of points assessed on your driving record. So, if your insurance company uses a point system to determine premium costs, this course will help save on your policy.

So, if you are a driver who has points on your driving record, there may be alternatives to high premium costs.

Best Course Of Action

When seeking car insurance coverage, it is best to determine which of the insurance companies use the point system and how it’s determined if certain course of actions are taken such as the defensive driving course. Also, be sure to understand how each infraction such as parking tickets, at-fault accidents, moving violations and driving under the influence of drugs and alcohol is assigned point values.

Insurance companies consider the more points you have, the worse your record. Each insurance company has its own method of evaluating potential policyholders, so the points on your driving record may or may not have a direct impact on the rates you pay for car insurance premium.You can be assured though, if you have points on your driving record, your car insurance premium rate will be higher because you are seen as more of a risk for insurance claims.

Related posts:

  1. How Do Driving Records Affect My Car Insurance Premium?
  2. What Affects Your Driving Record?
  3. How Many Years Before My Driving Record Is Clean?
  4. How Does A Defensive Driver Discount Work For Car Insurance?
  5. How Are The Average Car Insurance Rates Determined?

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