In New Jersey, any driver who is convicted of a moving violation is assessed points for each conviction in accordance with the NJSA point schedule. These points are considered motor vehicle points and are placed on your driving record, along with the conviction for the violation, by the NJ Motor Vehicle Commission.

Once a driver is convicted of a violation NJ insurance companies can assign points and assess surcharges. These points are known as insurance points or insurance eligibility points. Generally they are the same as the points imposed for motor vehicle points; however several serious violations that do not have motor vehicle points assigned to them will result in an assessment of points by the insurance company. These insurance points are used by insurance carriers to determine the rate of premiums that an insured will pay for coverage.

The New Jersey Motor Vehicle Points can be reduced. Two points can be subtracted every 5 years for taking an approved MVC defensive driving course. According to the NJ MVC, points cannot be taken away to reduce your insurance surcharge. So even if your insurance company does not see that you gained and lost 2 points, they will be able to still see the violation on your record, the next time they check your MVR, that originally gave you the motor vehicle points.

When your insurer does see the violation they may assign you insurance points and it may affect your rates depending upon your insurance company's rating system. To find out about your insurance company's rating system, contact your insurance agent.