Many states in this country operate with a point system in terms of driving privileges, and this point system can affect a person's auto insurance rates. While the point system may operate differently in all states, there are some things in common with the rules in most states. Here are a few things you should understand about points and your auto insurance.
Points are not a good thing
When you are talking about a sporting event, points are typically a good thing—as it means a team has scored—but with insurance and driving, points are not a good thing. Points represent problems with your driving record, and you can only get points from incurring traffic violations. If your state uses a point system, you start out with zero points. Anytime you get a ticket, you may get points added to your driver's license.
Points added vary by severity of incident
The number of points added for a ticket will vary. Tickets and driving violations that are minor might not incur any points, or they may only cause you to have one point added to your license. If you receive a major driving offense, such as a DUI, you may get a lot of points added. If you get too many, you will lose your driving privilege.
Higher points lead to higher insurance rates
Insurance companies track the points on their policyholder's driver's licenses. In other words, if you get points added, your insurance company will know. Each time you get another point, it may cause your rates to increase. You become a bigger risk when you have points added than you were prior to the addition, and that is why your rates will likely go up.
There are ways to reduce or remove them
Over time, your points will drop off your record, but this may take several years or longer. If you want to reduce the points right now, you would need to talk to your insurance agent about it. Your insurance agent can tell you what steps you can take to drop points from your record, and following these suggestions could help you save money on insurance costs. One common way to do this is by completing a driver's education course that is approved in your state.
If you are not sure how many points you have on your license, you can look it up, or you can talk to an auto insurance company such as Affordable Insurance about it.
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