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Q

How do points affect insurance rates?


A

Each traffic infraction you are convicted of -- such as moving violations, at-fault accidents or driving under the influence -- can be assigned a certain point value, if your state has a point system in place.  Some tickets, such as non-moving violations like a parking ticket, typically do not have points associated with them.

The more points you have on your driving record, the worse your record looks to a car insurance company. Each auto insurer has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for car insurance.

A point system is simply the assignment of "points" or values to each infraction. Then, the rating system of the car insurance company evaluates the "points" instead of each infraction. The insurance company, thus, has it's own insurance points system that may or may be the same as your state's DMV points system.

For example, a company may use this type of system:

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Description

Points 1st Occurrence

Points 2nd Occurrence

Points Each Additional Occurrence

At-fault Accident

2

3

2

Driving Under the Influence

1

2

3

No Charge Violation

0

0

0

Major Violation

4

4

4

Minor Violation

2

1

1

Not-at-fault Accident

0

0

0

Speeding

3

2

2

Because each insurance company has a different (complex) rating algorithm there is no set dollar amount or rating point comparison that can be given. If you want to find the specifics for your insurance company, their rates are filed with the state's department of insurance. You can request a copy of those rating factors and how they affect the companies' specific rates or check out state car insurance information at our state car insurance rates page. It is very complex and not for the faint of heart.

Typically, you can expect the company rating algorithm to try to put an insurance point value on each infraction (regardless of the state driving record point system). Based upon that point value a different rating factor is use to either raise or lower the rate. Again, it is different for every company. Some companies rating algorithms are much more complex and some are simple.

For example, one major violation can increase your rate by 25 percent with one insurer and 40 percent with another car insurance carrier. Most rating systems gradually lower the impact each year.  Meaning it may be 40 percent the first year, 30 percent the second and 20 the third and if the violation then falls off your driving record the surcharge would be over by year four.


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15 Responses to "How do points affect insurance rates?"
  1. ed

    I got a ticket for an illegal turn. Will my rates increase?

      Reply»  
  2. Visitor

    My rate with Esurance went up $20 per month, after I took a driving class to get points removed. But the violation was removed and Esurance told me they don't care about points.

      Reply»  
  3. Visitor

    For all you wanting to know price range, my car insurance went up $50 per month after I got 2 points.

      Reply»  
  4. Anonymous

    i have a +1 on my driving record is that good

      Reply»  
  5. Anonymous

    vague

      Reply»  
  6. Anonymous

    Please give examples of each category of violation. For example, minor violations: improper lane change, rolling a stop, no drivers license, no insurance, etc.) Also, what does each point translate into as far as increase in insurance coverage? Are there any other ways outside of paying more money to an insurance company, that a point would negatively affect your driving record?

      Reply»  
  7. Anonymous

    You should give some examples about the increase in the cost of the insurance for traffic violations.

      Reply»  
  8. Anonymous

    how can i delete points from my florida driver license before the 3years requirement?

      Reply»  
  9. Anonymous

    what are you meaning by point system?

      Reply»  
  10. Anonymous

    Estimates for points, for example: 2 points = 10% increase 4 points = 25% increase 12 points = 40% increase etc., etc. Averages would be fine.

      Reply»  
    1. gina April 13, 2013 at 7:40 PM

      Very true. Mine went up 100 dollars, exactly 10%, for 2 points.

        Reply »  
  11. Anonymous

    could you be more specific? any estimates (10,20 or 30% increase).....

      Reply»  
  12. Anonymous

    Clear, concise and to the point....even a little humor.

      Reply»  
  13. Anonymous

    any idea of geico rates

      Reply»  
  14. Anonymous

    YOU SHOULD BREAK UP THE POINTS AND AROUND HOW MUCH YOUR CAR INSURANCE WILL GO UP

      Reply»