How Driver’s License Points Affect Car Insurance Rates
More serious driving violations are likely to have a bigger negative effect on your car insurance premiums.
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Car insurance points are different from driver’s license points. Auto insurance companies have their own point systems for determining how certain incidents, such as accidents or moving violations, might affect your insurance rates. How an insurer determines your rates differs from the points a state authority can add to your license.
States use driver’s license points to track moving violations and other serious infractions on your driving record. Points systems vary by state, but most states reserve the right to suspend your driver’s license if you accrue too many points in a short period of time.
Car insurance premiums don’t always directly relate to the points on your license, but insurers still keep track of traffic violations on your record and adjust your premiums accordingly. Learn more about how insurance points work and how they can affect your car insurance rates.
How insurance points affect premiums
Insurance companies have their own systems for calculating points per incident. Significant offenses — like a speeding ticket, at-fault car accident, or DUI — typically result in increased insurance rates.1
Insurance companies increase rates to account for different violations on your record. For example, receiving a parking ticket will likely have a much lower point value than a DUI conviction. If you have multiple violations, your insurer will likely view you as a high-risk driver and charge you more for insurance.
You can check with your insurance agent to learn how much your rate may increase because of certain traffic violations or other risk factors.
In the table below, you can see how a few different violations affect average monthly full-coverage car insurance quotes from different companies.
Driver’s license points vs. car insurance points
An official state department or authority typically adds driver’s license points to your license. Violations like reckless driving, driving under the influence (DUI), and exceeding the speed limit can all add points to your driver’s license. Minor offenses might not register the same way as major offenses. Each state has its own system and specific guidelines dictating how many points result in a suspended license, whether drivers can remove points, and more.
Separate from driver’s license points, your car insurance points correspond with how an insurance company evaluates your driving record and claims history to calculate your premium. Each car insurance company has a different system for determining premiums, so you should compare different insurance costs regularly to see if you can find a lower rate elsewhere.
It’s also important to note that the car insurance points an auto insurer determines don’t result in fines, jail time, and license suspension or revocation. But you can face the aforementioned penalties as a result of receiving too many driver’s license points.
Driver’s license points by violation
Each state has a different driver’s license points system, so the same violation can hold different weights depending on where you live. For information about how specific violations add to your points total, you can look to your state’s DMV for information about state laws and what counts as a major or minor violation.
In addition to driver’s license points, a major offense can result in fines and a hearing before a judge. You might face a misdemeanor charge for certain traffic tickets or infractions, depending on their severity and the laws where you live. How long points remain on your record also depends on the state.
The following table offers information about how a few states handle some different types of moving violations, including the number of points needed in a certain period to face license suspension.2 3 4
How to remove driver’s license points from your record
Depending on your state, here are some things you can do to remove driver’s license points from your record:
Insurance points FAQs
If you still have questions about driver’s license and insurance points, the information below should help provide a better understanding of how a points system works.
How does insurance work with points?
You might see a couple of different references to points in insurance: car insurance points and driver’s license points. Insurance companies use their own car insurance point system when setting your rates, taking your driving record into consideration.
Driver’s license points are points that your state DMV adds to your license if you’re convicted of a violation, such as speeding or running a red light. The more serious the driving infraction, the more points you’ll receive on your license.
What does one point mean on your driver’s license?
If you’re convicted of certain motor vehicle violations, your state will add points to your driver’s license. Each state has a different points system, and some states don’t use driver’s license points systems at all.
One point on your driver’s license means you’ve likely committed a minor traffic violation, such as running a red light, failing to yield, or speeding 10 mph or less over the limit.
How long does it take for points to come off your license in Tennessee?
In Tennessee, it typically takes two years for points to come off your driving record.
Do driver’s license points increase your insurance premiums?
Most likely. Your driving record is one of many factors that insurance companies consider when setting your premiums. If you have many points on your driver’s license, your insurer will consider you a higher-risk driver and charge you higher rates as a result.
How can you remove points on your driver’s license?
Depending on what state you live in, you might be able to remove points from your driver’s license by contesting the ticket in court, taking a defensive driving course, or paying your fine in full before the due date.
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