How Much Will Your Insurance Premium Go Up With 4 Points On Your License From a Speeding Ticket?

A lot of people view driving as a right. But in reality, it is a privilege that must not be abused. Reckless driving harms pedestrians, fellow drivers, property and more importantly, your own bank account. When caught, numerous expensive fines and attorney’s fees which can drain your dollars away. All states have their own set of driving regulations that every driver should respectively follow. Majority of the states abide by the point system provided by the Department of Motor Vehicles. It can also be referred to as the DMV point system.

This is a value system that assigns points to each infraction that might happen to you. Moving violations, fault-based accidents, issuance of parking tickets and driving under the influence of alcohol are some of the common reasons why many drivers accumulate these expensive points. Corresponding values are given to every type of infraction. Unlike school, here, the more points you have accumulated over time means you are a worse driver than the general population. You pose a higher risk for spending, in the point of view of auto insurers. All companies have different evaluation tools which determine whether or not these points will have an effect on your premium rate. However, for most auto insurance providers, having infraction points mean that it will directly impact your premium payments.

Normally, one to two ticket violations won’t increase your premium but it also depends on the cause. If you get a ticket for leaving the scene of an accident, your premium rate might not only increase drastically but your insurance policy might even be canceled.

By assigning numerical values to every violation, your insurance carrier is able to evaluate the infraction more objectively by comparing and calculating the points instead of the actual violation. It also matters how often you commit the violation. For example, you were caught driving under the influence of alcohol for the first time. Your car insurer, then, assigns one point the first time it happens. However, on the second and third occurrences, they could assign three points for each time. Another example could be a minor violation earning two points on the first occurrence while only one point for the succeeding incidences. Some points can remain constant no matter how often the violation occurs. A major violation can earn a four points for a driver every time it happens. In addition, premium rates can increase as much as 26% for a single major violation. On the other hand, majority of insurers slowly lessen the impact on an annual basis.

No fixed dollar amount can be provided because, as mentioned earlier, each auto insurance provider has its own rating system for these points. The different rates are available at the state’s department of insurance. The public can request a copy of the rates and corresponding values for the points. However, the process can be taxing and long. It is quite complicated. We do not recommend this for citizens who don’t have the time and effort to spare.