How car insurance rates are affected by DMV points

Are you looking for car insurance at lower premiums? Your first step should be to learn how accidents, tickets and points can affect your premium rate before applying for a policy. This will give you a better idea on the type of coverage you can get and which insurance company can provide you with the type of coverage you want.

Many insurers give discounts to those who have a safe driving record. While being a safe driver is crucial to your safety and those around you, it also qualifies you for the best insurance rates.

Understanding Points

Most states have a points system that tracks those who are careless on the road. Accumulating points at the DMV means you would have to pay for higher premiums because you are considered “dangerous.” After one accumulates a certain number of points, you can get your driver’s license either revoked or suspended. Getting a clean history at the DMV means you will get better rates on your car insurance policy. Most states allow for up to 11 points on your record before suspending your license upon getting the 12th point. A suspension can last anywhere from 6-12 months, depending on the state.

Accidents

Accidents don’t actually get you points, but the ticket you are given if you’re at fault does. These points can be anywhere from 3-5 points, again, depending on the state.

Common Traffic Violations

We all get tickets from time to time - from speeding to running a red light. What you may not realize is that each ticket adds points to your record. Different violations give different amounts of points. In Nevada, for example, speeding can give anywhere between 2-5 points. Most traffic sign violations are worth four points, and careless driving can net 6-8 points.

The more points you have, the higher your premium is likely to go up. Your traffic record stays with you for about three years, so if you haven’t been careful, you’ll be paying more for quite some time. So drive safely; your car insurance will be lower and your wallet will thank you!