How Driver’s License Points Affect Car Insurance Rates
More serious driving violations are likely to have a bigger negative effect on your car insurance premiums.
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Written byMiranda Marquit
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Co-hosts the Money Talks News podcast
MBA from Utah State University
Miranda is a financial writer and avid podcaster with nearly two decades of experience contributing to major outlets, including Forbes, The Hill, and NPR.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Data reviewed byKonstantin Halachev
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Updated November 1, 2024
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Table of contents
Table of contents
Car insurance points are different from driver’s license points. Auto insurance companies have their own point systems for determining how certain incidents, such as accidents or moving violations, might affect your insurance rates. How an insurer determines your rates differs from the points a state authority can add to your license.
States use driver’s license points to track moving violations and other serious infractions on your driving record. Points systems vary by state, but most states reserve the right to suspend your driver’s license if you accrue too many points in a short period of time.
Car insurance premiums don’t always directly relate to the points on your license, but insurers still keep track of traffic violations on your record and adjust your premiums accordingly. Learn more about how insurance points work and how they can affect your car insurance rates.
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How insurance points affect premiums
Insurance companies have their own systems for calculating points per incident. Significant offenses — like a speeding ticket, at-fault car accident, or DUI — typically result in increased insurance rates.[1]
Insurance companies increase rates to account for different violations on your record. For example, receiving a parking ticket will likely have a much lower point value than a DUI conviction. If you have multiple violations, your insurer will likely view you as a high-risk driver and charge you more for insurance.
You can check with your insurance agent to learn how much your rate may increase because of certain traffic violations or other risk factors.
In the table below, you can see how a few different violations affect average monthly full-coverage car insurance quotes from different companies.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Data reviewed by Konstantin Halachev
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Insurance Company ▲▼ | With Ticket ▲▼ | With Accident ▲▼ | With DUI ▲▼ |
|---|---|---|---|
| Auto-Owners | $89 | $94 | $120 |
| USAA | $118 | $126 | $163 |
| State Farm | $139 | $149 | $196 |
| GEICO | $142 | $152 | $196 |
| Allstate | $159 | $169 | $219 |
| Progressive | $179 | $196 | $251 |
| American Family | $193 | $205 | $265 |
| Nationwide | $222 | $236 | $300 |
| Travelers | $233 | $247 | $315 |
| Liberty Mutual | $359 | $374 | $425 |
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Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Driver’s license points vs. car insurance points
An official state department or authority typically adds driver’s license points to your license. Violations like reckless driving, driving under the influence (DUI), and exceeding the speed limit can all add points to your driver’s license. Minor offenses might not register the same way as major offenses. Each state has its own system and specific guidelines dictating how many points result in a suspended license, whether drivers can remove points, and more.
Separate from driver’s license points, your car insurance points correspond with how an insurance company evaluates your driving record and claims history to calculate your premium. Each car insurance company has a different system for determining premiums, so you should compare different insurance costs regularly to see if you can find a lower rate elsewhere.
It’s also important to note that the car insurance points an auto insurer determines don’t result in fines, jail time, and license suspension or revocation. But you can face the aforementioned penalties as a result of receiving too many driver’s license points.
Keep in Mind
You can check with your state DMV to see how your driving history can affect your future ability to get a driver’s license.
Driver’s license points by violation
Each state has a different driver’s license points system, so the same violation can hold different weights depending on where you live. For information about how specific violations add to your points total, you can look to your state’s DMV for information about state laws and what counts as a major or minor violation.
In addition to driver’s license points, a major offense can result in fines and a hearing before a judge. You might face a misdemeanor charge for certain traffic tickets or infractions, depending on their severity and the laws where you live. How long points remain on your record also depends on the state.
The following table offers information about how a few states handle some different types of moving violations, including the number of points needed in a certain period to face license suspension.[2] [3] [4]
Violation ▲▼ | North Carolina ▲▼ | New York ▲▼ | Pennsylvania ▲▼ |
|---|---|---|---|
| Leaving the scene of property damage incident | 4 points | 3 points | 4 points |
| Running a red light | 3 points | 3 points | 3 points |
| Speeding | 2–3 points | 3–11 points | 2–5 points |
| Reckless driving | 4 points | 5 points | 3 points |
| Points needed for suspension | Accumulate 12 points in 3 years | Accumulate 11 points in 18 months | Upon second accumulation of 6 points or immediate suspension after accumulating 11 or more points |
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How to remove driver’s license points from your record
Depending on your state, here are some things you can do to remove driver’s license points from your record:
Contest the ticket in court
If you feel you unjustly received a traffic violation, you can try to contest a traffic ticket in court. If you successfully contest it, the state may remove it from your driving record.
Take a defensive driving course
DMVs in some states allow you to reduce your number of driver’s license points by completing an approved driving course or program. Similarly, some insurers will remove some of your car insurance points if you attend traffic school or take a defensive driving course.
Check with your state’s department of motor vehicles
You can check with your state DMV to see what steps you can take to reduce the number of points on your license.
Contact your insurance company
Ask your insurance company if you can offset some of your negative driving history with a course or program. Some companies also offer safe driving programs that can help you reduce your costs over time.
Maintain a clean driving record
It’s typically possible to improve your driving record over time as you wait for your driver’s license points to expire and fall off your record. Maintaining a clean driving record going forward is the best way to avoid both driver’s license points and insurance points.
Insurance points FAQs
If you still have questions about driver’s license and insurance points, the information below should help provide a better understanding of how a points system works.
How does insurance work with points?
You might see a couple of different references to points in insurance: car insurance points and driver’s license points. Insurance companies use their own car insurance point system when setting your rates, taking your driving record into consideration.
Driver’s license points are points that your state DMV adds to your license if you’re convicted of a violation, such as speeding or running a red light. The more serious the driving infraction, the more points you’ll receive on your license.
What does one point mean on your driver’s license?
If you’re convicted of certain motor vehicle violations, your state will add points to your driver’s license. Each state has a different points system, and some states don’t use driver’s license points systems at all.
One point on your driver’s license means you’ve likely committed a minor traffic violation, such as running a red light, failing to yield, or speeding 10 mph or less over the limit.
How long does it take for points to come off your license in Tennessee?
In Tennessee, it typically takes two years for points to come off your driving record.
Do driver’s license points increase your insurance premiums?
Most likely. Your driving record is one of many factors that insurance companies consider when setting your premiums. If you have many points on your driver’s license, your insurer will consider you a higher-risk driver and charge you higher rates as a result.
How can you remove points on your driver’s license?
Depending on what state you live in, you might be able to remove points from your driver’s license by contesting the ticket in court, taking a defensive driving course, or paying your fine in full before the due date.
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Sources
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
- North Carolina Division of Motor Vehicles. "Driver License Points."
- New York Department of Motor Vehicles. "The New York State Driver Point System."
- Pennsylvania Department of Transportation. "The Pennsylvania Point System."
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Miranda Marquit Insurance Writer
Miranda Marquit, MBA, is a freelance financial writer covering various markets and topics since 2006. She has contributed to numerous media outlets, including Forbes, TIME, The Hill, NPR, HuffPost, Yahoo! Money, and more. Her work has been syndicated by MSN Money, Marketwatch, Credit.com, and other publications. She has written about insurance topics for Clearsurance, HealthCare.com, and various other websites. She is also an avid podcaster and co-hosts the Money Talks News podcast. Miranda has a Master’s Degree in Journalism from Syracuse University. Connect with her on LinkedIn.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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