How do “points” affect my car insurance?


This point system is administered by the Department of Licensing to keep track of careless or dangerous drivers. Each certain point value acts as a demerit on one’s driving record and are added every time a driver or motorist commits a traffic violation. The more of these points in one’s driving record, the more negative one’s driving report would be and the higher one has to pay for insurance. Exceeding point allowance would result in penalties, which includes suspension of driving privileges and license.

The reason for higher rates is because the more a driver is likely to cause traffic violations, the more likely they could get in an accident and need financial coverage. Violations include: at-fault accidents, driving under the influence, no charge violation, minor and major violations, and speeding. Several violations could double coverage rates, almost to the point when drivers or motorists could no longer afford them for the car they drive.

Most Insurance companies use the point system to calculate and determine their premiums, along with other factors such as gender, marital status and credit history. But some insurers even use their own point system to determine the rise or fall of the rates. Because each company has a different and complex rating algorithm, there is no general payment amount and rating point comparison. Drivers could contact their insurers and inquire about the rating specifics, and the rating algorithms would be complex or simple depending on the company.

There are ways of reducing or removing the auto insurance points from one’s driving record. In many US states, a driver who spent a year without committing any violations can have as many as three points off his or her record. Also, most times points drop off from the record after a certain amount of time so drivers could wait for it to happen. Points could also be deducted by taking part in a driving improvement course or a defensive driving course. And hiring a good attorney could help in reducing the resulting points from a traffic violation.

Other ways to avoiding having points in one’s driving record is simply to avoid any reckless behaviour on the road that could lead one to an accident or violation. Drivers should also keep note and follow traffic rules and regulations. As long as drivers and motorists drive safely on the roads, they won’t have to worry about getting a point added to their record.