Questions Regarding Auto Insurance Penalties

There are many activities you may be involved in that result in auto insurance penalties. Generally, insurance penalties are things like high premiums. Of course, each auto insurance company is different, so one may not impose the same level of penalty after an action as another.

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What are the insurance penalties that result from license points?
First, let's discuss what license points are. When you have a traffic violation, your DMV will assign something called points to your driver's license. These points give an indication of how severe your violation was. Points can be avoided if driving classes are taken, and they do have an effect on your auto insurance premiums. Generally, the higher the points on your driver's license, the higher your auto insurance premium will be.

What are the insurance penalties of driving without insurance in a state that requires it?
If you are a resident in a state that requires car insurance, and you continually drive without it, you may face fines and, in a worst case scenario, and impounded vehicle. Since you do not actually have insurance when this happens, there may be no auto insurance penalties, but the fines may show up on your motor vehicle report and could result in higher premiums.