How Insurance Points Affect SR22 Cost

How Insurance Points Affect Auto Insurance Premiums


Auto insurance premiums are influenced by various factors, one of which is the accumulation of insurance points. Insurance points serve as a means for insurers to assess the risk associated with insuring a driver and, subsequently, adjust their premiums accordingly. Understanding how insurance points impact auto insurance premiums is essential for drivers seeking to manage their insurance costs and improve their driving records. In this article, we will delve into the mechanisms behind insurance points, how they are assigned, and the effects they have on auto insurance premiums.

What Are Insurance Points?

Insurance points, also known as surcharge points or merit points, are a scoring system used by insurance companies to evaluate the risk level associated with insuring a particular driver. These points are assigned based on the driver’s driving history, which includes traffic violations, at-fault accidents, and other factors that suggest a higher likelihood of filing insurance claims. The more insurance points a driver accumulates, the riskier they are perceived by insurers, resulting in adjustments to their auto insurance premiums.

The Assignment of Insurance Points

Each insurance company has its own unique system for assigning insurance points, and the point values assigned to various infractions may vary. However, the general principle remains consistent across most insurers. The following are common factors that lead to the assignment of insurance points:

1. Driving Violations: Common driving violations such as speeding, running red lights, reckless driving, and failure to yield often result in the addition of insurance points to a driver’s record.

2. At-Fault Accidents: If a driver is deemed at fault in an accident, they may receive insurance points, indicating a higher risk of future accidents.

3. DUI/DWI Convictions: Driving under the influence of alcohol or drugs is a severe offense and typically results in a significant increase in insurance points.

The Impact on Auto Insurance Premiums

For drivers, especially those classified as high-risk due to a history of driving violations or accidents, insurance points have a direct impact on their auto insurance premiums. The effects include:

1. Increased Premiums: As the number of insurance points increases, so do the insurance premiums. High-risk drivers with a substantial number of points are considered a greater liability, leading to higher insurance costs.

2. Limited Coverage Options: Standard insurance providers may be reluctant to offer coverage to high-risk drivers with a significant number of insurance points. As a result, high-risk drivers may need to seek specialized insurers that cater to drivers with less favorable driving records, but these policies often come with higher premiums.

3. Duration of Higher Rates: Insurance points typically remain on a driver’s record for a set period, usually ranging from three to five years, depending on the severity of the infraction. During this time, the driver may experience higher insurance premiums, even if they improve their driving habits.

Mitigating the Impact of Insurance Points

While insurance points can present challenges, there are strategies that drivers can employ to mitigate their impact on auto insurance premiums:

1. Defensive Driving Courses: In some states, completing defensive driving courses can lead to the removal or reduction of insurance points from a driver’s record.

2. Safe Driving Practices: High-risk drivers can gradually reduce their insurance points by maintaining a clean driving record over time and avoiding further violations or accidents.

3. Comparison Shopping: High-risk drivers should shop around for auto insurance coverage to find providers that may offer more lenient policies or competitive rates despite their driving history.


Insurance points play a crucial role in the assessment of auto insurance premiums for drivers. They represent a measure of risk used by insurance companies to predict the likelihood of future insurance claims. High-risk drivers with a history of driving violations or accidents are particularly affected by insurance points, facing increased premiums and limited coverage options.

Drivers seeking to manage their insurance costs and improve their driving records should focus on safe driving practices, consider completing defensive driving courses, and actively compare insurance options. By doing so, high-risk drivers can gradually work towards a cleaner driving record and potentially obtain more affordable auto insurance coverage in the future. Overall, understanding the impact of insurance points on auto insurance premiums empowers drivers to make informed decisions and prioritize safe driving behavior.