Guide
Driver's Licence Points and Your Insurance
How state point systems work, how insurers use (or ignore) points, the difference between state points and insurer points, and point-reduction options.
By Brandon Lee · Editor
Published · Updated
Answer in brief
Most states assign points to moving violations; accumulate enough and the state suspends your licence. Insurers, though, rate on the violation itself, not on state points—many maintain their own internal point schedules. So a ticket with zero state points can still raise your premium, and a point-reduction course that clears state points may or may not help your rate. A handful of states have no point system; insurers there rate directly on convictions.
| Concept | State points | Insurer rating |
|---|---|---|
| Purpose | Licence discipline | Pricing risk |
| Assigned by | State licensing agency | Each insurer's own schedule |
| Speeding 11–15 over | Typically 2–4 points | One minor violation surcharge |
| Cleared by traffic school | Often yes | Depends—see traffic school guide |
| No-point states | No points assigned | Still rated on convictions |
Why insurers keep their own
State point values reflect legislative judgments about safety; insurers' schedules reflect loss data. A ticket that costs two state points may be a 'minor' for one insurer and surcharged by another. Insurers also count violations from other states that may not transfer points to your home record.
Point thresholds
State suspension thresholds vary widely (for example 12 points in 12 months in some states; 4 in 12 months in others). Approaching the threshold is a licence problem first and an insurance problem second—a suspension is a major violation in its own right.
Entries in this guide
Specific questions answered in more depth.
Questions & answers
Do insurance companies use licence points?
Mostly no—they rate on the violations themselves using their own schedules.
If traffic school removes the points, does my insurance go down?
Only if it also keeps the conviction off your record; many states mask it, which does help.
Do out-of-state tickets count?
Usually yes for insurance, even if points do not transfer to your home state.
Terms used in this guide
- Licence points
- State-assigned values for violations used for licence discipline; insurers mostly rate on the violation itself.
- Insurer points
- An insurer's internal schedule for weighting violations in pricing; differs from state points.
- Moving violation
- An offence committed while the vehicle is in motion—speeding, running a light, improper lane change. Rated by insurers.
- Suspension threshold
- The point total at which a state suspends a licence.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- Speed — Insurance Institute for Highway SafetyIndependent researchHow speed raises crash likelihood and severity; speed-limit and enforcement research.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
- What is covered by a basic auto insurance policy? — Insurance Information InstituteConsumer guidanceDefines bodily injury and property damage liability, MedPay, PIP, uninsured/underinsured motorist, collision, comprehensive and glass coverage.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
Guide
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