In California, like most states, the number of points on your driving record can significantly impact your auto insurance rates. Insurance companies use your driving history, including any traffic violations and accidents, to help determine your risk profile as a driver. The more points you have, the higher you are deemed to be risk, and generally the more you will pay for car insurance.
How Points Are Assessed in California
In California, the Department of Motor Vehicles (DMV) administers a Negligent Operator Treatment System (NOTS) to track driving records and assign points for violations. Points remain on your California driving record for 3 years from the conviction date and are assigned as follows:
| Violation | Points |
| Major violations like reckless driving, DUI, hit-and-run | 2 points |
| Other moving violations like speeding, improper turning | 1 point |
| Any traffic accident where you are deemed at-fault | 1 point |
If you accumulate 4 or more points in 12 months, 6 or more points in 24 months, or 8 or more points in 36 months, the DMV will designate you as a negligent operator. This results in a warning letter being sent to you, and if additional points are accrued, you may be required to appear for a hearing or even have your license suspended.
How Points Increase Your Insurance Rates
Insurers use your driving record, including any points, to determine your risk profile and set your rates. In general, the more points you have, the higher your rates are likely to be. According to the California Department of Insurance, drivers with a single violation could see rate increases of 20% or more. Multiple violations lead to even higher increases. For example:
- 1 point: Rate increase around 20-22%
- 2 points: Rate increase around 45%
- 3 points: Rate increase around 90%
- 4+ points: Rate increase 100% or more
However, the exact rate increase will depend on your insurer, your policy limits, where you live, and other factors like your age and driving history. Some insurers weigh violations and accidents more heavily than others when setting premiums.
How Long Points Affect Your Insurance Rates
Points remain on your California driving record for 36 months from the conviction date. However, they can affect your insurance rates longer than that. Here’s how long points impact car insurance costs:
- Rate increase from a single point: Usually 3 years
- Multiple points: Rate impact can last 5-10 years
- Serious violations like DUI: 10+ years of increased rates
The more serious the violation and the more accumulated points, the longer insurers will consider you high-risk and keep your rates elevated. However, rates should gradually decrease over time as long as you maintain a clean driving record.
How to Reduce the Impact of Points on Your Insurance
If you’ve accumulated driving points, there are some steps you can take to help offset the rate increases:
- Increase your deductible: Choosing a higher deductible like $500 or $1,000 can help lower your overall premium.
- Adjust your coverage: Consider dropping extras like rental reimbursement or roadside assistance to bring costs down.
- Take a defensive driving course: These courses can remove 1 point from your license every 18 months.
- Shop around: Compare quotes from several insurers to find the best rate.
- Maintain a clean driving record: Going forward, obey all traffic laws to avoid adding more points.
- Consider usage-based insurance: These telematics programs base rates more on actual driving habits vs. driving history.
While points will almost always lead to rate hikes, taking proactive steps can help minimize the financial impact on your policy.
Case Study: How 1 Speeding Ticket Impacted California Rates
As an example, let’s look at how a single speeding ticket affected insurance rates for a California driver:
- Driver: 32-year-old male with a clean record before the ticket
- Violation: Speeding 15 mph over the limit, 1 point added to license
- Policy Limits: 100/300/100 liability, $500 deductible comprehensive and collision
- Insurer: Geico
- Location: Los Angeles, CA
Before the ticket, the driver paid $1,120 per year for full coverage with Geico. After the speeding violation added a point to his license, his annual premium increased by 22% to $1,366 per year. This equals an extra $246 per year he paid due to a single point on his record.
For drivers with multiple points on their record, the rate impact of 1 additional point is typically less pronounced since their rates are already elevated. However, any points are still viewed negatively by insurers and will result in some increase.
How Points Impact Insurance for High-Risk Drivers
Drivers with existing points and other violations see even greater rate hikes with each additional infraction. For example, someone with a DUI who gets cited for speeding could see a 50% or higher increase versus a driver with a clean record before the speeding ticket.
If you become a high-risk driver due to multiple points and other infractions, here are some steps you can take:
- Enroll in traffic school or a defensive driving course
- Consider a state-mandated insurance plan if you can’t find affordable coverage
- Ask your agent about discounts for completing safe driving courses
- Drop optional coverages to reduce your total premium
- Buy the minimum required liability limits to lower costs
- Shop around extensively to compare high-risk driver rates
The California Automobile Assigned Risk Plan (CAARP) provides minimum liability insurance to high-risk drivers unable to obtain coverage in the voluntary market. However, the rates are still very high. Following the steps above can help minimize how much your points increase your costs.
How Points Affect Young Drivers
Points and traffic violations have an even steeper impact on car insurance rates for young drivers under 25. Teen drivers with any points will see much larger rate hikes than older drivers.
For example, a 16-year-old driver with 1 point could see their family policy increase 50% or more. Teen drivers are already extremely high-risk, so any driving infractions exaggerate the insurance impacts. A single ticket can increase an under-25 driver’s rates by hundreds of dollars per year.
To reduce the rate spike, young drivers can take defensive driving courses, restrict driving privileges, have parents add the teen to their policy longer, or pursue discount programs through insurers.
Tips to Minimize Point Impacts for Teens
- Enroll in traffic school/defensive driving
- Only drive during certain times of day
- Remove access to vehicles with safety issues
- Increase liability coverage limits if possible
- Bundle teen with home insurance policy
- Maintain good grades for a discount
- Shop extensively to compare rates
Having even 1 point can jeopardize a teen’s already high insurance rates. Being proactive and maintaining diligent driving habits can help minimize increases.
How Insurance Points Systems Differ by State
While most states use a points system like California’s, the specifics vary across the country. Here’s how other states differ:
| State | Points Rules |
| Florida | Points stay on record for 10 years. |
| Nevada | Points stay on record for 3 years. |
| New Jersey | Caps points at 15 but keeps full history on record. |
| North Carolina | Safe driving can reduce points early. |
| Michigan | Allows 6 points before suspension vs. 4 in California. |
Some states make it easier or faster to reduce points through defensive driving classes or early point reduction. The total points allowed before a suspension also varies. Understanding your state’s specific guidelines is important.
Conclusion
In summary, a single point on your license can increase your California car insurance premiums by 20% or more depending on your history. The impact is higher for teens and high-risk drivers. The best ways to offset the rate hike are raising your deductible, adjusting coverage, taking defensive driving, and shopping around to compare rates. While California points stay on your record for 3 years, they can affect your insurance rates for many more years than that unless you maintain clean driving.
