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Driver’s License Points
Most U.S. states have a system for adding points to your state driving record if you’re convicted of violating motor vehicle laws at the state, county, or city level. The purpose of points is to encourage safer, better driving habits and to protect drivers, passengers, and others who share the road. Each legal violation has a fixed point number assigned to it. These points are typically set by the state’s department of motor vehicles.
Alternative names: demerit point system, driver violation point system, mandatory point system, negligent operator point system, point system
Each state has a different scale for assigning points. Here’s a comparison of a few driving violations across a handful of states: Some of the assigned points could lead to immediate suspension of your license. For example, Arizona’s limit of eight points in 12 months means that an eight-point violation for reckless driving or a DUI requires either traffic survival school or a license suspension for up to 12 months. In some states, certain convictions garner immediate suspension in addition to points. Some states even add points for moving violations out of state.
How Do I Find Out the Number of Points on My License Right Now?
You may be able to discover your point balance by looking up your driving record through your state’s department of motor vehicles’ online portal or calling its office. Some states will also allow you to review the record of your past driving history.
What Happens When You Get Points on Your License?
You might receive a letter in the mail. For example, Michigan drivers will receive a notice if they receive four or more points within two years. Depending on how many points you already have, one of several things could happen when you add points to your license: You could continue driving without any changes, be required to attend traffic school, or face suspension of your driving privileges. State DMVs may also notify your insurance company of your point-earning conviction, which is where insurance points come in.
Insurance Points
Most insurance companies have implemented surcharges for those same moving violations and at-fault accidents, which some call “insurance points,” according to Flannagan. Insurance points may also be known as “accident- or violation-related premium increases or surcharges,” she says. Your insurance premium is the amount you pay annually for your insurance policy. In some states, you may be turned down for insurance or face non-renewal if you have too many “eligibility points” for traffic violations.
How Do Insurance Points Affect Premiums?
When it’s time to renew your policy, your insurance company will likely pull the driving record of all insured drivers listed on your policy, Flannagan says. A driving record includes all driver’s license issuances, renewals, violations, points, accidents, suspensions, and other related occurrences. At that time, the insurer will consider what type of moving violations you might have picked up—such as speeding or an at-fault accident—along with any claims you made, such as repairs for a parking lot fender-bender. Based on the severity of the violation or accident, your insurance premiums could increase accordingly.
Which Violations Have the Biggest Effects?
Violations and insurance points vary by state and insurer. Flannagan notes that your rates might go up by 10% for a speeding ticket, or even to 100% for a DUI. Let’s look at an example: North Carolina has created a Safe Driver Incentive Plan (SDIP) and assesses SDIP points, which increase your insurance premium by a set percentage. Here’s the impact it would have on an $800-per-year policy. The agent can also tell you how long the surcharge will apply. Insurance points typically stay on your insurance policy until they roll off of your driving record after a certain period of time. At-fault accidents remain on a driver’s insurance record for varying lengths of time, typically also two to three years.
Driver’s License Points vs. Insurance Points
As we can see, driver’s license points and insurance points both punish poor driving choices. However, driver’s license points aim to either improve a driver’s behavior or suspend the license. Insurance companies use points to better assess their risk in covering specific drivers—if the driver has shown risky behavior, the company is more likely to have to pay claims. Some companies offer “accident forgiveness” for one at-fault accident, where no insurance points are assessed and no surcharge is added to the driver’s premium—for example, sideswiping a concrete parking pillar and denting your car, which now needs repairs. As an additional benefit, completing these classes could reduce your auto insurance premiums or points—ask your insurer. Here are some examples of how many points within a certain time period can lead to losing your driving privileges. To get your license back, you may need to complete driver’s safety courses, complete your suspension, and/or pay fees.
