Do points affect auto insurance rates?
DMV license points, which you get after a traffic incident, can definitely affect auto insurance rates. They can raise premiums by 20%-100% depending on the incident severity. State Farm, USAA, and Liberty Mutual are the best providers for drivers with several license points on their record.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
UPDATED: Apr 10, 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: Apr 10, 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.
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3,606 reviews- State Farm, USAA, and Liberty Mutual are the best providers with several license points
- Some points stay on your insurance record for years, often three to five
- Even with four points on your license, you can lower rates and remove points
License points are one of the factors that affect auto insurance rates. You’ll see higher premiums with more points, and getting as few as two points on your license can cause rates to go up.
Companies have different ways to decide how points affect insurance rates, so get quotes from top providers to find cheap high-risk auto insurance coverage. Keep rates low by attending a driver’s education course and maintaining a clean driving record. Read on to see how points affect car insurance rates and how to reduce the points on your license.
How License and Auto Insurance Points Affect Your Rates
Insurance companies consider two types of points when determining your auto insurance rates: driver’s license points and car insurance points. You’ll accumulate driver’s license points for most common traffic violations, including:
- Speeding
- Drunk driving
- Negligence resulting in an auto accident
- Disobeying traffic laws
The driver’s license point system varies by state. For example, most states add an additional point to your license for every 10-15 mph you’re caught driving above the posted speed limit. In addition, most states have a cap on the number of points you can accumulate before your license is suspended, while some offenses can lead to immediate suspension.
Check out the table below to see average car insurance rates by location and license points:
| State | No Points | Two Points | Four Points | Six Points | Points for License Suspension |
|---|---|---|---|---|---|
| Alabama | $150 | $170 | $200 | $250 | 12 |
| Arizona | $140 | $160 | $190 | $240 | 8 |
| Arkansas | $145 | $165 | $195 | $245 | 14 |
| Colorado | $155 | $175 | $205 | $255 | 12 |
| Delaware | $160 | $180 | $210 | $260 | 14 |
| Georgia | $165 | $185 | $215 | $265 | 15 |
| Idaho | $135 | $155 | $185 | $235 | 3 |
| Illinois | $155 | $175 | $205 | $255 | 20 |
| Indiana | $145 | $165 | $195 | $245 | 12 |
| Iowa | $130 | $150 | $180 | $230 | 5 |
| Kansas | $140 | $160 | $190 | $240 | 12 |
| Kentucky | $155 | $175 | $205 | $255 | 12 |
| Maine | $145 | $165 | $195 | $245 | 6 |
| Michigan | $180 | $200 | $230 | $280 | 12 |
| Minnesota | $150 | $170 | $200 | $250 | 4 |
| Mississippi | $140 | $160 | $190 | $240 | 12 |
| Missouri | $155 | $175 | $205 | $255 | 8 |
| Montana | $160 | $180 | $210 | $260 | 5 |
| Nebraska | $140 | $160 | $190 | $240 | 7 |
| Nevada | $165 | $185 | $215 | $265 | 12 |
| New Hampshire | $150 | $170 | $200 | $250 | 12 |
| New Mexico | $145 | $165 | $195 | $245 | 12 |
| North Dakota | $135 | $155 | $185 | $235 | 6 |
| Ohio | $135 | $155 | $185 | $235 | 2 |
| Oklahoma | $150 | $170 | $200 | $250 | 14 |
| Oregon | $150 | $170 | $200 | $250 | 18 |
| South Dakota | $140 | $160 | $190 | $240 | 22 |
| Tennessee | $140 | $160 | $190 | $240 | 12 |
| Texas | $160 | $180 | $210 | $260 | 18 |
| Utah | $145 | $165 | $195 | $245 | 200 |
| Vermont | $150 | $170 | $200 | $250 | 16 |
| Wisconsin | $140 | $160 | $190 | $240 | 12 |
| Wyoming | $150 | $170 | $200 | $250 | 14 |
Anything considered reckless could double or triple the number of points added to your record. More severe violations that cause accidents, injuries, or result in criminal convictions will add even more points to your driving record. Auto insurance with a suspended license is even more expensive, so be aware of how many points you have against your license.
Insurance companies use a different point system than the one on your driving record because there are additional traits and behaviors insurance companies consider along with your driving habits. Insurers maintain a point system to assess the risk of insuring a driver. Many non-driving-related factors can impact your overall point score, including your age and address.
While you can’t control your age or location, you can control these common factors that add points to your insurance score:
- Making late payments
- Having a drop in your credit score
- Filing a claim
While you never want to do anything that might hike your insurance rates, the good news is it’s not permanent. Points lower with time, and most insurance points cycle off your record within three to five years.
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Top Auto Insurance Companies With Points on Your License
View the table below to compare average full coverage auto insurance rates by provider and license points:
| Insurance Company | No Points | One Point | Two Points | Three Points | Four Points | Five Points | Six Points |
|---|---|---|---|---|---|---|---|
| Allstate | $150 | $165 | $180 | $195 | $210 | $225 | $240 |
| American Family | $140 | $155 | $170 | $185 | $200 | $215 | $230 |
| Auto-Owners | $135 | $150 | $165 | $180 | $195 | $210 | $225 |
| Erie | $145 | $160 | $175 | $190 | $205 | $220 | $235 |
| Farmers | $155 | $170 | $185 | $200 | $215 | $230 | $245 |
| Geico | $130 | $145 | $160 | $175 | $190 | $205 | $220 |
| Liberty Mutual | $148 | $158 | $168 | $178 | $188 | $198 | $208 |
| Nationwide | $160 | $170 | $180 | $190 | $200 | $210 | $220 |
| Progressive | $152 | $162 | $172 | $182 | $192 | $202 | $212 |
| State Farm | $142 | $152 | $162 | $172 | $182 | $192 | $202 |
| Travelers | $149 | $160 | $170 | $180 | $190 | $200 | $210 |
| USAA | $138 | $148 | $158 | $168 | $178 | $188 | $198 |
As you can see, State Farm, USAA, and Liberty Mutual are the best auto insurance companies with several points on your license. However, you can only get USAA if you’re in the military or part of a military family.
Read More:
How to See Your Auto Insurance Points
Whether your insurance company allows you to see any points you’ve accumulated depends on the company. Some companies will share this information if you request it.
However, the law doesn’t require insurance companies to explain why they increased your rates, but you can anticipate rate increases by monitoring your driving record. If you have several traffic violations, you’ll likely see higher rates when you renew.
You can file a complaint with your state’s department of insurance if you feel your rates increased unjustly and your company won’t share why they increased them.
Ways to Reduce Points on Your License
If points are added to your driver’s license, some states will lower or even remove points after you complete a defensive driving or another type of driving education course. You can also reduce points on your driving record by being proactive and maintaining your vehicle. For example, repairing a broken tail light right away will reduce the odds of a ticket and point increase.
In addition to driving courses and maintaining your vehicle, be sure to keep track of any points on your driving record. You can request a copy of your record from the local DMV and ensure everything is correct and accurate. If any points are mistakenly attributed to your record, contact your state Department of Insurance.
The best way to lower your points for car insurance is with time and patience. Some insurance points can stay on your record for up to 10 years, but typically they disappear within three to five if you maintain a good driving record.Chris Abrams Licensed Insurance Agent
The best strategy is to set a goal to keep your driving record clean and always make your car insurance payments on time. Some points may start to clear within a year of maintaining a good record.
How Driver’s Education Courses Can Lower Points and Rates
The best way to avoid unnecessary points on either of your records is to maintain a safe driving record. Locally, you may find classes through automobile clubs and community colleges. If your city has a center for continued adult learning, you may also find courses there. Courses vary by organization, and some can be as short as a few hours, while others may take several sessions to complete.
To find classes online, check with your state’s motor vehicle division or safety organization. Drivers who are aged 50 and older can also find courses through the AARP.
Always check with your insurance company to verify the courses you are taking qualify for discounts on your policy. (Read More: How to Get a Driver’s Ed Auto Insurance Discount)
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How Points Affect Auto Insurance Rates: What You Need to Know
You can see your auto insurance rates go up anywhere from 20% to 100% after you get license points added to your record. Accidents, speeding tickets, DUIs, and other traffic violations add points your record, affecting your premiums. You may also need to get SR-22 insurance, which costs even more and proves to your state that you carry the minimum coverage required by law.
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Keeping a clean driving record, taking a defensive driving course, and avoiding claims will ensure you can find the most affordable auto insurance rates.
Understanding the Impact of Points on Your Auto Insurance
Accumulating points on your driver’s license is a clear indicator to insurance companies that you may pose a higher risk on the road. These points, typically resulting from traffic violations or accidents, can significantly influence your insurance premiums. The impact varies greatly depending on the severity of the violations, the total points accumulated, and the state in which you’re insured.
State-Specific Effects of Points on Insurance Rates
Different states have varying systems for assessing points for traffic violations. For example, in Massachusetts, the Safe Driver Insurance Plan (SDIP) directly ties the number of points on your driving record to your insurance premiums. Conversely, states like Florida and New York also follow a points system where accumulating violations can lead to increased insurance costs, license suspension, or even revocation.
In general, receiving four points on your license could result in a premium increase, but the exact amount can vary significantly from one state to another. For instance, in South Carolina (SC) and Michigan, the insurance rate hike for accumulating points might differ due to the states’ unique insurance regulations and the discretion of individual insurance companies.
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Mitigating the Impact of Points on Insurance Rates
There are several strategies to minimize the effects of points on your auto insurance:
- Attend a Defensive Driving Course: Many states offer the option to reduce points on your driving record by completing a state-approved driving course. This can not only help in lowering your points but may also qualify you for additional discounts from your insurance provider.
- Maintain a Clean Driving Record: Going forward, avoiding traffic violations and accidents will help reduce the points on your record over time. In many states, points decrease or disappear from your driving record after a certain period, typically three to five years.
- Shop Around for Insurance: If your current insurer significantly increases your rates due to points, it might be beneficial to shop around. Some insurers specialize in covering high-risk drivers or offer more forgiving rates for those with points on their record.
Frequently Asked Questions
How do points affect auto insurance rates?
License points typically get assigned to drivers convicted of certain traffic violations, such as speeding, running a red light, or reckless driving. Insurance companies consider points as indicators of increased risk and may adjust premiums accordingly.
What does four points do to your insurance?
You’ll likely see higher auto insurance rates if you get four points on your license. Four points on insurance indicates a driver is high risk, so they pay higher premiums.
How much does two points affect your insurance?
Two points on your license means insurance rates may go up anywhere from 20% to 100%, depending on your location.
How much does four points affect insurance in Massachusetts?
Having four points on your license in Massachusetts can increase your auto insurance rates by up to 30%. Below are the license points that get added to your license in MA after certain incidents, according to the official state website:
- Minor traffic violation: Two points
- Minor at-fault accident: Three points
- Major at-fault accident: Four points
- Major traffic violation: Five points
Read More: Massachusetts Auto Insurance
How much does four points affect insurance in Wisconsin?
A speeding ticket in Wisconsin, which adds three license points, can increase rates by around 25% to 30%. So, expect even higher rates if you add four points.
Read More: Wisconsin Auto Insurance
How long do points affect auto insurance rates?
The amount of time points affect auto insurance rates vary by company and the specific violations.
In general, points remain on your driving record for a certain period, usually between three and five years. During this time, they’re typically considered by insurance companies when calculating your rates.
However, the exact timeframe can vary by jurisdiction and insurance company, so it’s important to check with your specific provider for accurate information.
Will points always increase my auto insurance rates?
Accumulating points on your driving record doesn’t automatically mean your auto insurance rates will increase.
The impact on your rates depends on various factors, including the number of points, the severity of the violations, your overall driving history, and the policies of the insurance company. For example, four points isn’t as bad on insurance as eight points.
While points generally indicate an increased risk, some insurance companies may offer forgiveness programs or other incentives that mitigate the impact of points on rates.
Can I lower my auto insurance rates if I have points?
It may be possible to lower your auto insurance rates even if you have points on your driving record. Here are a few strategies that may help:
- Safe driving: By maintaining a clean driving record and avoiding further traffic violations, you can demonstrate to insurance companies that you are a responsible and low-risk driver. Over time, this may lead to lower premiums.
- Defensive driving courses: Completing a defensive driving course can sometimes earn you a discount on your auto insurance rates. Check with your insurance provider to see if they offer any such discounts and if you are eligible to participate.
- Shop around: It’s always a good idea to compare quotes from multiple insurance providers. Different companies have varying approaches to rating and considering points. You may find that some companies offer more favorable rates despite having points on your record.
Can points be removed from my driving record?
The process for removing points from your driving record can vary depending on your jurisdiction. In some cases, points may automatically expire after a certain period, such as three to five years, without any further action needed.
However, it’s important to note that the specific regulations and procedures for point removal differ by location. To learn about the rules and potential options for removing points from your driving record, contact your local department of motor vehicles.
How much does four points affect insurance in Massachusetts?
In MA, four points could lead to a noticeable increase in your insurance rates due to the SDIP (Safe Driver Insurance Plan) system. However, the exact impact varies by insurer and individual driving history.
Can attending a driver’s education course reduce my points in NY?
Yes, New York offers a Point and Insurance Reduction Program (PIRP) where completing a state-approved defensive driving course can reduce up to four points from your driving record and offer a minimum 10% reduction in the base rate of your auto and motorcycle insurance premiums for three years.
How does accumulating points affect insurance rates in states like Colorado and Virginia?
While each state’s DMV system for points varies, insurance companies nationwide assess risk similarly. More points often mean higher rates, but the specifics depend on state laws and individual insurer policies. In both Colorado and VA, accumulating points can lead to higher insurance rates.
What’s the impact of six points on my insurance in Ohio?
Accumulating six points in Ohio can lead to severe consequences, including potential license suspension. The insurance impact can be significant, with possible rate increases or difficulty finding affordable coverage.
How can I check the points on my license in MA?
You can check your driving record, including any points, through the Massachusetts Registry of Motor Vehicles (RMV) either online, in person, or by mail.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
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.