OAI Discusses How Violation Points Affect Car Insurance

Orlando, FL, February 01, 2011 --(PR.com)-- Many states’ motor vehicle departments use point systems to track the number and severity of traffic incidents and violations involving resident drivers. And although the number of points assigned to particular types of violations will vary from state to state, one thing that they have in common is their potentially adverse effects on car insurance rates.

The reason that points on a driving record will drive up insurance costs is they indicate to the insurer that the driver may have risky driving practices and may be more likely to get into accidents.

In some states, though, violation points are not the only thing that can negatively impact insurance premiums. Auto insurance companies in Florida, for instance, will undoubtedly raise rates for a driver who has gotten a DUI, even though technically no points are issued for this violation. This is because those convicted of a DUI in the Sunshine State automatically have their licenses revoked, which an insurer is likely to be notified of.

One state that offers a clear-cut view of how violation points will affect the cost of coverage is North Carolina. As part of that state’s Safe Driver Incentive Plan (SDIP), more than two dozen types of incidents or infractions are assigned points with values between one and 12, and the total numbers of points are correlated with proportional premium increases.

So a North Carolinian who causes an accident that results in bodily injury damages of $1,800 or less can know that one point will be added to their license, which brings with it a 25-percent increase in premiums. But if the damages totaled more than $1,800, three points will be tacked on to his or her history, which will bring with it a 60-percent increase.

Points and corresponding rate increases are clearly laid out in the SDIP grid that can be viewed at http://bit.ly/ifEO66.

To access the full FAQ regarding the point system, readers can go to http://www.onlineautoinsurance.com/florida/ and click on the “Questions” link in the upper right hand corner.

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