DMV vs. Insurance Points in 2025 (Key Differences)
DMV vs. insurance points can impact your car insurance rates differently. DMV points typically raise rates by $112 per month, while insurance points increase rates by about $110 per month. Understanding how points affect your insurance is crucial, especially when dealing with DMV points and insurance coverage.
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Table of Contents
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Farmers CSR for 4 Years
Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...
Leslie Kasperowicz
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Ty Stewart
Updated May 2025
DMV vs. insurance points can make a significant difference in your car insurance premiums. The DMV assesses your points for driving infractions, and insurance companies will view those points when determining your premiums.
A clean driving record will lead to cheaper rates, but excessive points might increase them. Knowing the difference between DMV and insurance points is significant since they affect expenses differently.
Geico is an excellent choice for individuals with fewer points since it provides competitive premiums even if their driving record isn’t stellar. Understanding how these points affect your premiums will help you select the best insurance provider.
- DMV points get added to your driving record after traffic violations
- The insurance points system assigns severity to bodily injury claims, affecting rates
- Contesting a ticket or taking a defensive driving course could remove points
Furthermore, if the point system is ruining your insurance rates, start shopping from the cheap auto insurance companies right away. Enter your ZIP code into our free quote comparison tool to get started.
DMV vs. Insurance Points Explained
Knowing the difference between DMV points and insurance points can help you avoid problems with your license and keep your car insurance rates lower. Even though both are connected to your driving, they are used in different ways. For example, insurance points vs. license points in NC are tracked separately by the DMV and your insurance company.
How DMV Points Are Assigned
DMV points are added to your driving record when you break traffic laws, like speeding or not stopping at a stop sign. These points are tracked by your state’s Department of Motor Vehicles.
DMV vs. Insurance Points: Monthly Rate Impact by Providers
| Insurance Company | Base Rate | +1 DMV Point | +2 DMV Points | +3 DMV Points | +1 Insurance Point | +2 Insurance Points | +3 Insurance Points |
|---|---|---|---|---|---|---|---|
 | $125 | $145 | $165 | $190 | $135 | $160 | $185 |
 | $118 | $132 | $150 | $172 | $128 | $146 | $170 |
 | $123 | $140 | $160 | $185 | $133 | $155 | $180 |
 | $110 | $125 | $140 | $165 | $120 | $135 | $160 |
 | $130 | $150 | $170 | $200 | $140 | $165 | $195 |
 | $118 | $134 | $152 | $177 | $128 | $146 | $172 |
 | $120 | $135 | $155 | $180 | $130 | $150 | $175 |
 | $115 | $130 | $150 | $175 | $125 | $145 | $170 |
 | $129 | $148 | $168 | $195 | $138 | $160 | $188 |
 | $100 | $112 | $128 | $145 | $110 | $125 | $140 |
If you get too many in a short time, you could lose your license. These points on license and insurance stay on your record for a few years and can lead to higher insurance rates, too. It helps to know how license and insurance points affect your record so you can avoid extra trouble.
Explore how auto insurance companies check driving records to understand how your driving history impacts your insurance rates and how to avoid higher costs.
How Insurance Points Work
Insurance points are used by your car insurance company to decide how much to charge you. If you’ve been in an accident or gotten tickets, your insurance company might add points to your record, which can raise your rates. Getting insurance points in NJ can cause your insurance cost to go up a lot, even if your license is still valid.
Every insurance company has its own car insurance point system, so the same violation might affect your rate differently depending on who you’re insured with.
Understanding how insurance points vs. license points in NC work and how each system affects you can help you drive smarter, avoid extra costs, and stay out of trouble with both your insurance company and the DMV. Find out if you can keep auto insurance with a revoked driver’s license.
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How Points Affect Your Auto Insurance Premiums
Points on your driving record can raise your auto insurance rates, and how much depends on a few factors. Many drivers ask if points on a license will affect insurance. Yes, they can. The more points you have, the higher your rates could be.
For example, 1 point on your driving record affects insurance differently than several points, but even one point can raise your premiums with some insurers.
Insurance rates are influenced by violation severity. Minor tickets don't affect rates, but serious ones, like running a red light, usually raise premiums.Michelle Robbins Licensed Insurance Agent
People also wonder how points affect your insurance. The answer is simple: more points generally lead to higher rates. If you’re asking if points affect auto insurance rates, the answer is yes.
Factors that affect auto insurance rates include the number of points on your record, the seriousness of the violation, and the insurance provider’s policies. It’s also important to understand DMV vs. insurance points, as DMV points affect your license, while insurance points impact your premiums.
The following table explains how major traffic violations can affect your rates.
Auto Insurance Monthly Rates by Driving Record
| Insurance Company | Clean Record | One Accident | One DUI | One Speeding Violation |
|---|---|---|---|---|
 | $228 | $321 | $385 | $268 |
 | $166 | $251 | $276 | $194 |
 | $198 | $282 | $275 | $247 |
 | $114 | $189 | $309 | $151 |
 | $248 | $335 | $447 | $302 |
 | $164 | $230 | $338 | $196 |
| $150 | $265 | $200 | $199 |
 | $123 | $146 | $160 | $137 |
 | $141 | $199 | $294 | $192 |
 | $84 | $111 | $154 | $96 |
| U.S. Average | $170 | $246 | $298 | $210 |
These offenses add points to your license and can raise your insurance rates, whether it’s four points on your license for SC insurance or two points on your license with Ohio insurance.
Finding Out How Many Points Are on Your License
If you’re wondering whether the points on your license affect your insurance, the answer is yes, but it depends on how many points you have. The best way to find out how many points are on your license is to contact your state’s DMV.
By contacting the DMV, you can get answers to questions like, “What do 3 points do to your insurance?” or “How much do 2 points affect car insurance?” You can also learn how to check car insurance with points on your license in states like NC and find out how many points are allowed before your license can be suspended.
It’s important to understand that if your license is suspended, you will be unable to retain your car insurance. Insurance agencies will terminate your policy if you are not licensed to drive. Therefore, it’s a smart move to watch your points and attempt to have a clean driving record to maintain lower insurance charges and avoid the possibility of suspension.
Read more: Can I keep auto insurance while my driver’s license is revoked?
How to Reduce or Remove DMV vs. Insurance Points
Many drivers don’t realize there’s a difference between DMV points and how insurance companies view them. For example, DMV points in NC are added to your license after traffic violations, and too many can lead to a license suspension.
Some ask, does the DVM run your insurance? The answer is no. The DMV doesn’t handle insurance, but insurance companies do look at your DMV record to determine your rates.
That’s where the link between DVM points and insurance comes in. Points do affect auto insurance rates — more points often mean higher premiums.
If you’re wondering how to remove insurance points, you may be able to take a defensive driving course or keep a clean record for a few years. Even though car insurance for drivers with license points tends to be more expensive, companies like Geico and State Farm still offer coverage, and some even offer discounts if you improve your driving habits over time.
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How License and Insurance Points Impact Your Car Insurance Rates
Knowing how license and insurance points work is important for keeping your car insurance rates affordable. The car insurance point system is different from the points the DMV tracks, and it’s helpful to understand how they affect you.
While DMV vs. insurance points might seem similar, they are used for different reasons—DMV points affect your driving record, while insurance companies use the car insurance point system to decide how risky you are as a driver and adjust your rates.
Having too many points, whether from tickets or accidents, can cause your rates to go up because it shows you’re more likely to have future claims. So, it’s important to know how points affect your insurance to keep your premiums in check.
In addition, if you find that having driver points on your insurance or insurance points on your license has caused your insurance rates to go up, it’s important to shop around for lower auto insurance premiums. You can also search for companies offering various auto insurance discounts, even if you have points on your insurance policy.
Finding cheaper insurance rates is as easy as entering your ZIP code into our free quote comparison tool.
Frequently Asked Questions
What are DMV vs. insurance points?
You probably want to know what car insurance points are. What is the DMV point system definition? DMV points, also known as driver’s license points, are a system used by the Department of Motor Vehicles to track and penalize drivers for traffic violations.
Insurance points, on the other hand, are a system used by insurance companies to determine the risk profile of a driver and calculate premiums based on their driving history.
So if you’re wondering, no, insurance companies don’t use the same point system as the DMV to determine insurance rates.
How do DMV points and insurance points differ?
So, what is the purpose of the DMV point system? DMV points are primarily concerned with licensing and enforcing traffic laws, while insurance points are used by insurance companies to assess risk and set premium rates. That’s why there is sometimes a correlation between license and insurance points, even though they are different things.
DMV points can lead to the suspension or revocation of a driver’s license, whereas insurance points may result in higher insurance premiums. Finding cheaper insurance rates is as easy as entering your ZIP code into our free quote comparison tool.
How are DMV points assigned?
DMV points are typically assigned when a driver is convicted of a traffic violation, such as speeding, running a red light, or reckless driving. The number of points assigned varies depending on the severity of the offense. Accumulating too many DMV points within a specific timeframe can result in license suspension or other penalties.
However, you can find out how different states treat DMV points. You can learn about how to remove points from your driving record in California, as well as find out about South Carolina DMV points.
Read more: Do I have to declare speeding points on my insurance?
How are insurance points determined?
Is there a car insurance point system? Do license points affect auto insurance? Insurance points are determined by insurance companies based on a driver’s history of accidents, moving violations, and claims filed. Each insurance company has its own system for assigning points, and the number of points assigned can vary.
You can look up specifics, such as the Progressive point system, or find out more about Geico car insurance points on your license.
Generally, more severe violations and accidents result in higher insurance points, and car insurance with points is usually more expensive.
What are the pros and cons of DMV points and insurance points?
Here are the pros of DMV points:
- Encourage safe driving behavior by penalizing traffic violations
- Provide a standardized system for assessing driving records
- Can help identify high-risk drivers and remove them from the road
Here are the cons of DMV points:
- May result in license suspension or revocation, impacting daily life and employment
- A punitive approach may not address the underlying causes of unsafe driving
- Lack of consistency across different states in terms of point assignments
How do insurance companies find out about tickets?
Every time you renew your insurance, companies check your Motor Vehicle Record (MVR) at the DMV to see if any new traffic violations have occurred. So if you get a speeding ticket, your rates won’t go up right away until your six-month or yearly policy renewal.
That means that initially, car insurance for people with points won’t be extremely expensive, but rates will most likely increase. Do points on your license affect insurance? Yes, eventually they will.
Read more: How to Get Instant Proof of Your Auto Insurance Policy Online
How do I remove points from my driving license?
You might wonder, does removing points lower insurance? In some cases, you may remove points earlier by taking a defensive driving class or contesting a ticket and getting it removed.
Where you live may determine the process as well, such as finding out how to get insurance points removed in NC or how to remove insurance points or DMV points in NJ.
Getting a ticket dropped will also ensure that you don’t get insurance points added, such as Progressive insurance points.
How long do points stay on your license?
After a while (usually at least a year), points will cease to matter on your driving record, although a record of them will remain. In some states, a charge like a DUI will stay on your license for years. Points on your license and insurance might vary, so be sure to check specific state laws and company processes.
How long a speeding ticket stays on your license may depend on where you live, such as if you get a South Carolina speeding ticket.
How many insurance points can you get for a speeding ticket?
Wondering how many points a speeding ticket is? It depends on what state you live in, but generally, a speeding ticket will add about two points to your license. The number of points on your insurance might vary. Depending on your insurer, the insurance points for speeding will likely add at least $100 to your annual premium.
How many points can you get for driving without insurance?
Once again, this depends on the state. However, driving without insurance will add a high number of points to your license. According to NOLO, driving without insurance may result in the immediate revocation of your license and hefty fines.
What are BI points?
Will 2 points on my license affect my insurance?
Do 3 points affect insurance?
How many points on a license before insurance goes up?
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