DMV points are assigned in some states for traffic infractions. The point values are determined by state laws. In the states that put points on your driving record and/or against your driving license, it can indeed affect your driving privilege. If you accumulate too many points typically your license will be suspended or revoked.

In California, if you can amass too many points from moving violation citations you can be considered a negligent operator and can lose your driving privilege. The point totals CA uses to name you as a negligent driver are 4 points in 12 months, 6 points in 24 months or 8 points in 36 months.

In Wisconsin, if you accumulate 12 or more demerit points in a 12 month period a suspension of your driving privilege will result. In the District of Columbia if you collect 10 or 11 points your DC license will be suspended for 90 days. If you receive 12 or more points your DC license will be revoked for 6 months. To find out what you states laws are contact your DMV.

As for insurance rates, how they are determined differs from insurance company to insurance company. Some might consider the amount of points or the severity of your violations as part of the variables they use to decide rates. You can check with your state's insurance regulatory body to see how your insurance company does their rating system since they much be filed with this entity.