DMV Points vs. Insurance Points Explained (2024)
DMV points vs. insurance points are separate systems to monitor driving infractions. While DMV points affect license and driving privileges, insurance points raise rates. Points from a DUI can raise rates by over $1,000 annually. We'll explain the difference between insurance points vs. license points below.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences i...
Commercial Lines Coverage Specialist
UPDATED: Feb 26, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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
DMV points vs. insurance points are two different systems for tracking driving infractions on your record. DMV points only affect your license and driving privileges, while insurance points can increase your auto insurance rates.
Our guide breaks down the difference between license points vs. insurance points, including how DMV and insurance points work.
If the point system is ruining your insurance rates, start shopping for cheap auto insurance rates right away. Enter your ZIP code into our free quote comparison tool above to get started.
DMV Points and Insurance Points
So what is the difference between auto insurance points vs DMV points? How do insurance points work in contrast to DMV points? The quick explanations below should help.
- DMV points: DMV points are what the DMV adds to your driving record after traffic violations. If you accumulate enough points, your license may be revoked.
- Insurance points: The insurance points system tracks how many bodily injury (BI) liability auto insurance claims were processed on your insurance. While having BI points won’t affect your license, they’ll raise your car insurance rates.
Read More: Can I keep auto insurance with a revoked driver’s license?
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How Points Affect Your Auto Insurance Premiums
Do points affect auto insurance rates? Most drivers wonder how many points affect insurance. Common questions are, “How much will my insurance go up with three points? How much do four points affect insurance? Is having two points on your license bad?”
Unfortunately, there is no clear cut guide on how much points will raise your rates. There are a number of factors that affect auto insurance rates for something like four points on a license insurance increase.
Read More: How Auto Insurance Companies Check Driving Records
The two most important factors are the nature of the violation behind the point and the time that passes between points. So if you're wondering if a 0-point ticket affects insurance, it likely won't. For example, violations like a parking ticket won’t raise your rates but running a red light will.Michelle Robbins Licensed Insurance Agent
The following table explains how major traffic violations can affect your rates.
| Insurance Company | Clean Record | One Accident | One DUI | One Speeding Violation |
|---|---|---|---|---|
| USAA | $59 | $78 | $108 | $67 |
| Geico | $80 | $132 | $216 | $106 |
| American Family | $117 | $176 | $194 | $136 |
| Nationwide | $115 | $161 | $237 | $137 |
| State Farm | $86 | $102 | $112 | $96 |
| Average | $119 | $173 | $209 | $147 |
| Progressive | $105 | $186 | $140 | $140 |
| Travelers | $99 | $139 | $206 | $134 |
| Farmers | $139 | $198 | $193 | $173 |
| Allstate | $160 | $225 | $270 | $188 |
| Liberty Mutual | $174 | $234 | $313 | $212 |
Not only do these offenses add points to your license, but your insurance rates will go through the roof.
Read More: Do I have to declare speeding points on my insurance?
Finding Out How Many Points are on Your License
How much do points affect insurance? It depends how many points are on your license. The best way to find out how many points you have is to contact your state DMV.
Contacting the DMV will also help find answers to state questions like, “How much do two points affect insurance points in NJ?” You can also find out how many points are permissible in your state before your license is revoked.
Can I keep auto insurance while my driver’s license is revoked? The answer is no. Insurers will cancel your policy if you have a revoked license.
More About DMV Points vs. Insurance Points
We hope you have a better understanding of how DMV points affect your insurance points and rates.
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If you find that your insurance rates have gone up after DMV points, it’s important to shop around for lower auto insurance premiums. You can also search for companies offering various auto insurance discounts to lower your monthly premium. Enter your ZIP code in our free tool below to find cheap auto insurance quotes.
Frequently Asked Questions
What are DMV points and insurance points?
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.
How do DMV points and insurance points differ?
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. DMV points can lead to the suspension or revocation of a driver’s license, whereas insurance points may result in higher insurance premiums.
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.
How are insurance points determined?
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. Generally, more severe violations and accidents result in higher insurance points.
What are the pros and cons of DMV points and insurance points?
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
Cons of DMV points:
- May result in license suspension or revocation, impacting daily life and employment
- 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.
How do I remove points from my driving license?
In some cases, you may remove points earlier by taking a defensive driving course or contesting a ticket and getting it removed. Getting a ticket dropped will also make sure you don’t get insurance points added as well, 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.
How many insurance points for a speeding ticket?
Wondering how many points is a speeding ticket? It depends on what state you live in, but generally, a speeding ticket will add about two points to your license. Depending on your insurer, the insurance points for speeding will likely add at least $100 onto your annual premium.
How many points 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.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences i...
Commercial Lines Coverage Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.