How are insurance rates affected by points on a drivers license?
Points are levied against drivers who make a mistake or violate rules of the road. Accumulating points on your driving record will likely have a negative impact on your auto insurance premium.EffectsThe effect of points on an auto insurance premium depends on the number of points and the violation. A car accident may increase a premium by up to 30 percent. In some states, receiving a certain number of points may lead to a suspended or revoked license. Usually, states allow between four and six points before a license is suspended.ConsiderationsHaving one point on your record may not have much of an impact on your auto insurance premium. In California, for example, insurance companies cannot legally increase your auto insurance rates if you have just one point.Driving RecordsThe state Department of Motor Vehicles does not notify an auto insurer if you get a point on your driving record. But insurance companies periodically check these records, so they may eventually find out.Time FrameW
