subject: How Do Points Affect My Auto Insurance? [print this page] The point system is carried out by the state's Department of Licensing. It is wherein each infraction has its own designated point. If one has accumulated excess points, his or her driving license may be suspended. However, the ways in which the points are assessed differ from one auto insurance company to another.
Some large insurance providers have different state systems to consider and deal with. Oftentimes, they do not differentiate the number of points an offense warrants, meaning, they disregard the assigned value for each infraction. Instead, they just count the actual number of violations or offenses.
An increase in your insurance rates is almost certain if you have a recent violation, not unless your insurance provider offers amnesty program. For example, a certain company may forgive you for one accident or forgive you for an offense if you took and pass a defensive driving course.
The point system is very crucial in relation to your auto insurance premiums. How they use this information to compute rates, however, are strictly guarded. In fact, there are companies that would ask you a lot of information so that their competitors would not know their formula. This is a major way that insurance companies remain competitive.
The best course of action that you may want to take is to contact your auto insurance provider and ask for their policies. You may want to find out if they offer ways to reduce the effect of accidents or amnesty programs. And if you need to renew your insurance, you may want to shop around first to help you decide if you should switch companies.
How Do Points Affect My Auto Insurance?
By: Michael Beaudry
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