Points are accumulated on a person's license when he or she has a violation. It could be a speeding ticket or the result of an accident. If you have points, you will pay more for insurance as a result. Auto insurance rates go up when you get points. According to an article published in Forbes.com, one ticket can raise your insurance premium by as much as 22 percent. That's far more than you want to pay for your insurance. What do you do, then, when you have points on your license?
#1 - Improve Your Driving Habits
This may not help you initially, but it will help you in the long term. Follow the rules of the road, avoid speeding, and ensure you avoid any violations. Over time, the points will fall off. When they do, contact your insurance provider to request a lower rate. If you get more tickets, though, you can expect to see your rates rise even more.
#2 - Consider a Driving Course
Some states allow individuals with moving violations to take a driver's education course from an approved online or local provider. Doing so could help to reduce your insurance rates because it may help you to avoid tickets on your license. For example, in Nevada, the Point & Insurance Reduction Program allows individuals to reduce up to four points from a driver's record and receive a minimum of a 10 percent reduction in insurance costs if they enroll in this type of educational program. Not all states allow this and there are restrictions.
#3 - Consider a New Provider
If your insurance costs have risen, contact your independent agent to reshop your policy. In fact, getting quotes is going to be very important especially after the points drop off your record since some providers will not reduce your costs at that point. Don't be afraid to reach out to us for help with reviewing your policy.
#4 - Don't Drop Your Coverage
It is also very important not to go without insurance coverage. Even if you have to pay more, it is easier to get coverage from a new provider if you already have it, rather than if you do not. In short, if you let the policy lapse, you will pay more to gain coverage again.
#5 - Raise Your Deductible
Finally, for a significant improvement in your rate right now, raise your deductible. Only do this if you can afford the out of pocket costs it will require. If you need savings now, though, this can help you to get it.
Auto insurance is not something to push to the side. If you get points on your license, you will pay for it, right out of your pocket. However, it is possible to get your costs down as well. Over time, you can get improved rates as your points drop off your license. If you need help figuring out which