Understanding License Points: How They Affect Your Car Insurance Rates
Car insurance premiums often feel like a mystery, with many factors influencing how much you pay. One commonly overlooked factor is license points. These points, assigned for various traffic violations, are sometimes used by insurance providers to help determine your level of risk as a driver and ultimately, your insurance rates. The more points you accumulate, the more you may end up paying.
Below, we'll take a look at the basics of points, how points are assigned, and how license points affect car insurance rates. You'll find all the knowledge you need to keep your driving record — and your insurance rates — in good standing.
What Are License Points and How Are They Assigned?
License points are part of a system used by many states to monitor and penalize drivers for traffic violations. Points are assigned based on the severity of the offense, with minor violations like speeding adding fewer points compared to more serious infractions like reckless driving or driving under the influence.
For example, in South Dakota, failing to display your license plates properly results in one point, while reckless driving could add eight points to your record. Speeding tickets in South Dakota, on the other hand, can range from zero to 15 points depending on the speed and location of the violation.
The rules and penalties associated with license points vary significantly from state to state. Some states may suspend your license if you accumulate a certain number of points within a specific period, while others may impose fines or require you to attend traffic school. Your Department of Motor Vehicles (DMV) typically tracks points for a set amount of time and removes them from your record once they expire (often between one and three years).
The following 10 states use alternative systems instead of assigning points to track and penalize drivers for traffic violations:
Review the insurance requirements of your state:
How Do License Points Affect Your Car Insurance Rates?
Your driving record is one of the most significant factors insurers consider when determining your car insurance premium. Any negative additions to your record, such as a speeding ticket or DUI, can cause your rates to increase. If you are in a state that uses a points system, insurance companies may take into account the number of points on your record as an additional metric to help determine your premium.
Insurance companies keep internal records of violations with their own scoring systems that are often more complex and comprehensive than the state's point system. These internal systems vary widely between insurance providers, so the impact of specific points on your rates may differ from one company to another. However, in general, having license points can result in higher insurance premiums as it indicates a higher risk of getting into accidents or making claims.
This is especially true when shopping for new car insurance or taking out a new policy. Insurance companies may also review your driving record when renewing your current policy and adjust your rates accordingly.
Which Traffic Violations Lead to License Points?
Traffic violations that result in license points vary widely in terms of severity and the number of points assigned. Minor infractions like speeding a few miles over the limit, improper lane changes, or failing to stop at a stop sign typically result in lower point totals. For example, you might receive two or three points for these types of violations, depending on the state.
More serious violations, however, come with steeper penalties. Infractions like reckless driving, driving under the influence (DUI), or leaving the scene of an accident can add a significant number of points to your record — sometimes as many as 24 points for a single offense. In states with more strict point systems, these violations can quickly lead to a suspended license if accumulated over a short period.
How Can You Check and Monitor Your License Points?
Regularly monitoring your license points and insurance premiums is a smart way to avoid surprises. There are several methods available to check your points.
One of the easiest ways is to use your state’s DMV online services. Many states have user-friendly websites where you can log in, view your driving record, and see how many points you’ve accumulated. This process typically requires your driver's license number and may involve a small fee, but it provides instant access to your record.
If online access isn’t available in your state, you can request a copy of your driving record by mail or in person at your local DMV office. This process might take a bit longer, but it’s a reliable way to get an official record directly from the source.
For those who prefer not to deal with the DMV directly, third-party companies offer services to obtain your driving record on your behalf. These services often charge a higher fee, but they can save you time and hassle. Just be sure to choose a trustworthy service to protect your sensitive information.
What Strategies Can You Use To Reduce License Points?
So, you’ve checked your license points and noticed that they are higher than you’d like. How can you work on reducing license points to lower insurance costs? Here are a few strategies that may help:
- Attend a Defensive Driving Course: One of the most common ways to reduce points is by attending a state-approved defensive driving course. These courses, often available both online and in-person, can remove points from your record upon completion. The number of points reduced and the frequency with which you can take these courses vary by state.
- Drive Safely and Avoid Violations: The best way to reduce points is to avoid accumulating them in the first place. By adhering to traffic laws, obeying speed limits, and practicing defensive driving, you can prevent new points from being added to your record.
- Timely Resolution of Tickets: Addressing traffic tickets promptly by paying fines or contesting them in court can help prevent additional points from being added to your record. In some cases, negotiating a lesser charge or attending traffic school as part of a plea deal can result in fewer points.
- Contest Tickets in Court: If you believe a traffic violation was issued unfairly, you can contest it in court. Successfully challenging a ticket may result in the violation being removed from your record.
- Time-Based Point Reduction: In many states, points will automatically be removed after a few years of violation-free driving. By keeping a clean record, you can ensure that older points eventually fall off.