LICENCE PENALTY POINTS & THEIR EFFECT ON INSURANCE COSTS

One of the most significant factors is the accumulation of penalty points on a driver's license. These points, assigned for traffic violations, indicate a higher risk to insurers, leading to increased insurance premiums and, in some cases, the potential loss of your license. Here, we try to shed light on the relationship between penalty points and car insurance costs.

What are penalty points?

Penalty points, or driving endorsements, are added to your record when you're convicted of a motoring offense, such as speeding or dangerous driving. The severity of the offense determines how many points you receive. For example, a minor speeding violation may add three points, while a serious offence such as drink driving can result in up to 11 points.

According to the Driver and Vehicle Licencing Agency (DVLA), as of September 2023, over 2.7 million drivers in the UK have at least three points on their licences, with the Halifax (HF) postcode having the highest concentration of drivers with points. If you accumulate 12 points within a specific period, you might lose your license. However, even if you don't reach the threshold for losing your license, even a few points can still raise your car insurance cost.

Drivers should be cautious, as accumulating 12 points within a certain period could lead to losing your license. Even if you don't hit the limit, having penalty points will likely raise your insurance costs.

How penalty points affect your insurance?

Penalty points will impact your car insurance premi...