If you’ve ever gotten a ticket of any kind, you know that a ticket means points can be added to your driver’s license. Most states issue license points after a violation. Separately, when you get an insurance quote, the insurer will use its proprietary point system to help set rates for individual drivers.
While insurers may use information about your driving record, including your driver’s license points, insurance points are determined separately as a part of the quote process.
Below, we explore the differences between insurance and license points. Plus, we look at how each impacts you.
- Most states use a point system to keep track of traffic violations and accidents.
- You should expect an increase in insurance premiums once a ticket or violation appears on your DMV record.
- Your state’s Department of Motor Vehicles or a similar state organization should be able to provide you with detailed information on how points are added to and subtracted from a driver’s driving record.
Insurance points vs license points: What’s the difference?
Insurance points differ from driver’s license points that your state’s Department of Motor Vehicles (DMV) puts on your driving record for various traffic offenses. Insurance companies use a separate proprietary point system to help them set rates for individual drivers.
An insurance company’s point system may match up with a DMV points system, but in most cases, they are entirely separate.
What are insurance points?
Insurance points are used to assess your eligibility for auto insurance coverage and for the calculation of rates. In many cases, the impact of insurance points lessens over time. As time passes, if you keep your driving record clean and don’t file any claims, the insurance points on your record could be reduced, leading to a lower premium.
Most point systems insurers use are proprietary, so they can vary dramatically by insurance company. However, many insurance carriers use the system based on the Insurance Services Office (ISO) guidelines.
“Each point represents a risk factor for insurance providers, often leading to increased premiums as insurers anticipate a higher likelihood of claims,” says Christian Strange, owner of Strange Insurance Agency.
Insurers assign points to your insurance record for issues such as speeding tickets and other infractions, but they also ding you for claims. Once your point total hits a specific threshold, your premium will be “surcharged.” In other words, your rates are headed up. If your point total gets too high, you may be dropped altogether.
For exampleIf your insurance company assigns three points for a speeding ticket for 10 mph over the limit and 2 points if you are caught running a red light, your insurance record will have 5 points on it. Insurance companies have surcharge schedules that detail the rate increase for various point totals. If their surcharge schedule indicates that a driver with 5 points would be surcharged 1.25, your rate is headed up 25% until the tickets fall off of your driving record, which will usually take three years.
Understanding insurance points: How they affect premiums
As an insurer determines rates, they add insurance points based on your driving behaviors. For example, a speeding ticket will likely equate to insurance points.
Generally, more insurance points lead to higher insurance premiums. While the details vary by insurance company, the insurance points may remain on the driver’s insurance points tally for several years. As long as the insurance points remain in the tally, insurers will likely charge you more for insurance coverage.
It is always possible to see the specifics of your insurance carrier’s rating system. Contact your insurance agent or your state’s insurance regulatory body and request your insurer’s surcharge schedule. All insurance companies must file their rates with the state insurance regulators.
What are license points?
In most states, traffic violations and accidents are tracked using a point system. These point systems vary by state.
If the Department of Motor Vehicles (DMV) in your state uses a point system, any time you are issued a ticket for speeding or other driving infractions, the points associated with that ticket will hit your DMV record. If you accumulate a specific number of points in a certain amount of time (it varies by state) your license will often be suspended or revoked.
Points vary by the severity of the infraction. While a speeding ticket may only put one point on your DMV record, a reckless driving ticket could put four points or more on your license. Your insurance company will consider these tickets and accidents but incorporate them into their point system.
Some moving violations that usually have points assigned to them include the following:
- Speeding
- Reckless driving
- Leaving the scene of an accident
- Passing a stopped school bus
- DUI
- Improper passing
- Failure to stop or yield
How do license points influence your driving record?
Most points from minor traffic infractions fall off your DMV record within three years, but this also varies by state. More serious offenses, such as a DUI or driving without insurance, can stay on your record for much longer. In most states, it is at least seven to 10 years, and, in some states, severe offenses stay on your record for decades. In Florida, for example, it takes 75 years for a DUI to come off your driving record.
Once a ticket or infraction shows up on your DMV record, your insurance rates will likely go up. However, it may not happen immediately. Insurance companies are not notified every time you get a ticket; it is up to them to pull your DMV record at renewal time. Your rates will probably stay the same until you hit your renewal date, file a claim, add a driver, or buy a new car.
How many license points lead to a suspended license?
If you manage to put a lot of points on your license and hit a certain threshold (it varies by state), your license will be suspended. To find out about your specific state’s points system and what violations have points assigned to them, check with your local Department of Motor Vehicles.
For example, drivers who accumulate 12 points within 12 months in Florida will incur a 30-day suspension.
How long does it take to remove points from your license?
It varies depending on your state, but in most cases, you can expect minor violations such as speeding tickets to drop off your record in three to five years. More severe infractions such as DUIs tend to stick around for seven to 10 years and, in some states, for decades.
You should be able to get specific information from your state’s Department of Motor Vehicles or Department of Transportation on how points are accumulated and removed from a person’s driving history.
For examples of how some states handle DMV points, see below:
- Pennsylvania: The Keystone State allows points to be removed from your driving record for safe driving. You can get 3 points removed from your driving history for every 12 consecutive months (from the date of the last violation) without a violation. Once a driving record is reduced to zero and remains at zero points for 12 consecutive months, any further accumulation of points is treated as the first points accumulation.
- Utah: Utah’s point system states that one-half of your accumulated points will be removed from your driving record if you go one full year without a moving traffic violation conviction. All points are deleted if you drive for two straight years without conviction. Otherwise, individual convictions are automatically removed three years after the violation date.
- New York: In New York State, the DMV computer system automatically calculates your point total. Your point total is the number of driver violation points you received during the 18 previous months.
Points are counted from the dates of your traffic violations, not those of your traffic convictions. A traffic conviction is required for the points to appear on your driver’s record. Eighteen (18) months after the violation date, the points for that violation are removed from your point total. The convictions remain on your record.
What happens when you get points on your license?
It will vary depending on the state you live in, but in most cases, the only significant impact of a few points on your license is more expensive insurance. If you get a speeding ticket, you can expect your insurance rates to go up, but that should be the only significant consequence of the points.
However, the pain will be much more severe if you end up with numerous tickets in a short time or a significant traffic infraction on your record. You could end up with a suspended license, significant fines and even jail time.
For exampleIn California, points ranging from zero to three are assigned based on the severity of an offense. Most minor offenses like speeding will result in one point on your license. Your license will be suspended for six months, and you’ll be on probation for a year if you get the following:
- 4 points in 12 months
- 6 points in 24 months
- 8 points in 36 months
A suspended license will result in dramatically higher insurance rates and may make it difficult to find a policy.
How to get points removed from your license
Once again, the answer varies by state. Here are a few tips for getting points removed from your DMV record:
- Defensive driving course: Many states allow drivers to take a state-approved defensive driving course to remove a few points from their licenses. Verify this is an option in your state, and get a list of approved courses. Once you pass the course, you must contact the DMV to request removal of the points. Most states only allow this option to be used once every few years.
- Fight the ticket: If you feel the ticket was unwarranted or there were mitigating circumstances, you can go to court and ask for the ticket to be dismissed or reduced. You may be able to get the points reduced or even eliminated.
- Verify points drop off: Points will impact your insurance rates as long as they stay on your driving record. Check your DMV record when the points are set to drop off to ensure they have been removed. If they have not disappeared, contact the DMV to request the points expire.
How do insurance and license points vary by state?
Although not every state uses a license point system, most do. In terms of insurance points, insurers across the country use the information from your driving record to assess your risk as a driver and determine your premiums.
The bottom line
When it comes to insurance and license points, drivers who receive a ticket for a violation of some kind should expect both insurance and license points. You can check into the license points by contacting your DMV. While points remain on your record, you can expect higher insurance premiums.
Frequently asked questions
How much do 3 points affect insurance premiums?
It varies. In some states, 3 points may be a lot. In another state, it might not be much at all. The same can be said for insurers. They all rate risk differently and surcharge at different levels for the same infraction. The best idea is to contact your insurer and ask for their surcharge schedule.
How often do insurance companies check your points?
Each time an insurance company issues a new policy, it will likely check out your points. From there, the insurer will use the points when determining your premiums.
Can I get insurance with points on my license?
Yes, it’s possible to get insurance with points on your license. However, you should expect to pay more for insurance coverage if you have points on your license.
Resources & Methodology
Sources
- California DMV. “The Negligent Operator Treatment System (NOTS).” Accessed November 2024.
- Florida HSMV. “Points & Point Suspensions.” Accessed November 2024.
- New York DMV. “The New York State Driver Point System.” Accessed November 2024.
- PennDot. ”Pennsylvania’s Point System.” Accessed November 2024.
- Utah Department of Public Safety. “Utah Points System.” Accessed November 2024.
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