Does points on licence affect insurance?
In today’s world, maintaining a clean driving record is crucial for numerous reasons, including the cost of car insurance. Many individuals often wonder whether the points on their driver’s licence have any impact on their insurance premiums. The answer is a resounding yes. Let’s delve into how points on a driver’s licence can affect insurance and what you can do to minimize the impact.
The Role of Points on Your Licence
Points on a driver’s licence are penalties imposed by the government for traffic violations. These points are added to your record, and the number of points you accumulate can have a significant impact on your car insurance rates. Typically, the more points you have, the higher your insurance premiums will be, as insurance companies view you as a higher risk driver.
How Points Affect Insurance Premiums
Insurance companies use a variety of factors to determine the cost of your insurance, and points on your licence are one of those factors. When you apply for car insurance, the insurance company will review your driving record and consider the following:
1. The number of points on your licence
2. The type of violation that led to the points
3. Your overall driving history
If you have a higher number of points, the insurance company may perceive you as a greater risk and, as a result, increase your premiums. Conversely, if you have a clean driving record with no points, you may qualify for lower rates.
Types of Violations and Their Impact
Different violations carry different point values, and the severity of the violation can also affect your insurance premiums. Some common violations and their corresponding point values include:
– Speeding: 3-6 points
– Running a red light: 3-6 points
– Reckless driving: 6-12 points
– Hit-and-run: 6-12 points
– DUI/DWI: 6-12 points
Insurance companies will take into account the type of violation and its point value when calculating your premiums.
How to Minimize the Impact of Points on Insurance
If you find yourself with points on your licence, there are steps you can take to minimize the impact on your insurance premiums:
1. Take a defensive driving course: Some insurance companies offer discounts for completing a defensive driving course. This can help improve your driving skills and may lead to lower premiums.
2. Maintain a clean driving record: Avoid committing further traffic violations to prevent additional points from being added to your licence.
3. Shop around for insurance: Compare quotes from different insurance companies to find the best rates for your situation.
4. Consider an insurance discount: Some insurance companies offer discounts for good students, military members, or for being a member of certain organizations.
In conclusion, does points on licence affect insurance? Absolutely. Points on your licence can have a significant impact on your car insurance premiums, so it’s essential to maintain a clean driving record and take steps to minimize the impact of any points you may accumulate.
