Millions have points on their driving licence — what it means for car insurance

Almost three million motorists across England, Scotland and Wales have at least three points on their driving licence, according to figures from the Driver and Vehicle Licensing Agency (DVLA). 

Over 94,000 drivers have nine penalty points on their licence, and are just one speeding ticket away from hitting 12 points and being banned from driving. The analysis of DVLA data by comparison site LeaseLoco found 10,415 drivers have already hit this number.

As well as risking losing your licence, penalty points will affect the cost of your car insurance. Here, Which? explains how and offers tips on saving if you have a history of poor driving.

What are penalty points?

Penalty points – also called driving endorsements – are issued by courts to anyone convicted of a driving offence. 

The number of points which end up on your licence will depend on what offence you've committed. For example, you'll be slapped with three to six points if caught speeding, but drink driving can see you given up to 11 points.

Points will stay on your driving record for either four or 11 years – depending on the seriousness of the offence – and start from the date of the conviction or the date of the offence. They will be visible to insurers and your employer for their entire duration, but if you're under 18, then just your employer will see them.

Do points affect your premium?

All penalty points, no matter how few, mean you are likely to pay more for your car insurance policy. 

How much more will depend on the number of driving endorsements you have accumulated and the seriousness of the offences. In some cases, providers may even refuse to cover you at all. That's because insurance providers consider penalty points as a sign that you're not a careful driver and are more likely to make a claim.

To understand the impact penalty points can have, provider Admiral took a look at data for new customers asking for a quote. 

The figures showed motorists with a conviction such as driving using a mobile phone (CU80) could see their average premium increase by 55% for one to three points. However, it could rise by 71% or higher for multiple convictions. The insurer says the average price hike for more than seven points for this type of penalty is a massive 174%.

Don't be tempted to lie about your driving record, even if penalty points mean paying a higher premium. Non-disclosure can mean your insurer will refuse to pay out for any claims made and, worse still, terminate your cover entirely.

Cut the cost of cover – even with points

Having points on your license will push up the price of your premium – but there are ways to bring the costs down.

1. Try black box cover

It uses technology to track your car, with data collected on braking, steering, speed and mileage. Your provider will use that information to decide whether to reward you for your driving skills. Benefits can include money off your premium and bonuses such as retail vouchers. 

The technology can also help you identify ways to improve your driving and even help trace your car if it's stolen.

2. Add a named driver

Adding an older, more experienced driver to your policy can sometimes reduce your annual premium.

But be warned: it's illegal to put someone down as the main driver if this is not the case and can lead to an insurer refusing to pay a claim, cancelling the policy altogether or even taking legal action against you for fraud. 

3. Watch out for mileage

Less mileage equals lower risk to insurers and therefore cheaper cover. So try to limit the miles you clock up over the year if you can.

Again, always be honest about it. Lying could lead to your policy being invalidated.

4. Downsize your car

The size of your car does matter when it comes to the cost of cover. Insurers consider smaller or less powerful vehicles to be a lower claim risk and that's reflected in the price of premium offered. 

So if penalty points are having a big impact on your policy, it might be worth checking if changing your vehicle for a more compact set of wheels could save you money.

5. Shop around for the best deal

Whether you are renewing or buying a new policy, it's always worth shopping around – especially if points on your license are pushing up the price. Comparison sites that allow you to view multiple car insurance quotes at a glance are a good place to start. The main ones for insurance are Compare the Market, Confused.com, GoCompare and MoneySuperMarket. 

Once you're on the insurer's website, check the policy details again, just to be sure the insurer has received all the correct information about you and is providing an accurate quote.

Find out more: 

6. Haggle for a better price

Even if you do have a history of motoring offences, there's no reason why you shouldn't bargain for a cheaper deal.

Do your research first and come to the negotiation table armed with any cheaper quotes for the same level of coverage. You may find they are happy to give you a discount rather than lose a customer to a rival company.

Find out more: 

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source https://www.which.co.uk/news/article/how-penalty-points-impact-your-car-insurance-premiums-aod6l1f7BMAz
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