Does having points on licence affect insurance?
In today’s fast-paced world, driving is an essential part of daily life for many people. However, with the increased number of vehicles on the road, the risk of accidents has also risen. As a result, insurance companies have become more stringent in assessing the risk associated with each driver. One of the factors that insurance companies consider is whether a driver has points on their licence. This article will explore how having points on a licence can affect insurance premiums and what drivers can do to mitigate this risk.
Understanding Points on a Licence
Points on a licence are penalties imposed by the government for various traffic violations. These points are recorded on a driver’s licence and can remain for a certain period, depending on the severity of the violation. Common violations that result in points include speeding, running red lights, driving under the influence of alcohol or drugs, and reckless driving. Accumulating too many points can lead to a suspension or revocation of the driver’s licence.
The Impact on Insurance Premiums
Insurance companies use a variety of factors to determine insurance premiums, and points on a licence are one of them. Drivers with points are considered higher risk by insurance providers, as they have a history of violating traffic laws. This higher risk translates to higher insurance premiums. The more points a driver has, the more they can expect to pay for their insurance coverage.
How Points Affect Insurance Rates
The impact of points on insurance premiums can vary depending on the insurance company and the state. Generally, drivers with points can expect the following:
1. Higher premiums: Drivers with points will likely see an increase in their insurance rates, as the insurance company views them as a higher risk.
2. Increased deductibles: Some insurance companies may also increase the deductible amount, which is the amount the policyholder must pay out of pocket before the insurance coverage kicks in.
3. Additional fees: Some insurance companies may charge additional fees for drivers with points, further increasing the overall cost of insurance.
Reducing the Impact of Points on Insurance
While it is impossible to remove points from a licence, there are ways to reduce the impact of points on insurance premiums:
1. Maintain a clean driving record: By avoiding further traffic violations, drivers can demonstrate that they are committed to safe driving and may be eligible for discounts.
2. Take defensive driving courses: Some insurance companies offer discounts to drivers who complete defensive driving courses, which can help improve driving skills and reduce the risk of accidents.
3. Shop around for insurance: Comparing quotes from different insurance companies can help drivers find the best rates, even with points on their licence.
Conclusion
In conclusion, having points on a licence can significantly affect insurance premiums. Drivers with points are considered higher risk by insurance companies, leading to higher rates and increased deductibles. However, by maintaining a clean driving record, taking defensive driving courses, and shopping around for insurance, drivers can mitigate the impact of points on their insurance costs. It is essential for drivers to understand the consequences of traffic violations and take steps to improve their driving habits and insurance rates.
