How Long Does it Take for Points to Be Deducted From Your Insurance?
Insurance companies set premium rates based on several criteria that define a driver's risk, assigning "points" when your driving record is marred by violations. The more points you have on your record, the more money you must pay to remain insured. The points, however, are removed as time goes on. States and insurance companies have different timetables for allowing such points to disappear.
Other People Are Reading
-
State Points Systems
-
Some states, like California and New Jersey, use a points system that tracks your moving violations and accidents. You receive a certain number of points for minor violations and at-fault accidents and a greater number for major violations like DUI. You are sometimes able to remove points from your record by attending state-approved traffic school or defensive driving courses, if permitted by the courts. When enough time passes without your gaining more points, the existing points disappear. Each state has its own schedule. In New Jersey, some of your points disappear in as little as one year after the date of your most recent violation.
Insurance Surcharges
-
Insurance companies do not necessarily utilize the state point system when determining your premium level. While each insurer must file with its state regulatory agency for approval regarding how it charges rates, the companies are generally able to charge for and forgive violations and accidents according to their own rules. Thus, the length of time a driving incident remains chargeable to your insurance may vary among insurers, even within a single state.
-
The General Rule
-
Typically, in the absence of any policy language that overrules it, the general rule for insurance companies is to charge additional premiums for moving violations and at-fault accidents for three years after the incident occurs. The premium increase generally occurs at the first policy renewal after your conviction date and remains for three annual policy cycles afterward. The level of increase is usually different for at-fault accidents, standard violations like speeding and major violations like reckless driving.
Availability of Discounts
-
Sometimes, as is the case with California, a "good driver" discount is available to drivers who meet certain eligibility criteria as defined by state law. This is another factor that can affect your premium rates. In the case of a DUI, the discount disappears ten years after your conviction date. Therefore, even though the surcharge on your auto insurance premium disappears after three years, typically, your premium will not return to its pre-point level for an additional seven years while you wait to become eligible for the discount again. Other combinations of accidents and violations can invalidate this discount.
-
References
- Photo Credit Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
