How Much Does Insurance Go Up With 1 Point?

Insurance Q&A: “How much does insurance go up with 1 point?”

Ah, the “insurance point system”…so elusive, so vague. Perhaps even clandestine?

Nonetheless, many states have developed point systems to keep track of individuals’ driving histories, with each infraction assigned a point value depending on its severity.

Your point assignment can be as little as “1,” or as high as a “3,” depending on the infraction and the state in which you reside.

For example, a minor speeding ticket may earn you 1 point, whereas a DUI may earn you 3. In this game, the fewer the points the better.

Sorry to bum you out even more than you already are, assuming you’ve already got a point on your record, but there is no single “surcharge” for 1 point.

We’d love to tell you 1 point = $50 or $100 in additional insurance premium, but it simply doesn’t work that way.

There are seemingly endless factors that go into those fancy algorithms used to determine and calculate your car insurance rate, so it can be a bit more complicated.

What’s My Age Again?

If the answer is 16, you’d better quit the school spirit team and pick up a part-time job. Your car insurance is about to go through the roof. You might even see it double depending on a few other factors.

(How does my credit score affect my insurance premium?)

You’re already considered “risky” enough as a teen driver. Add a ticket or an accident to that equation and the insurer has all the proof they’ll need to charge you (or your parents) a ton of extra money.

If you’re slightly longer in the tooth, 50 years old for example, one point may be only a slight surcharge of say five to 10 percent…if that. One of the few frills of being old folks.

Is This the Only Point?

Your first point may only increase your premium slightly (as noted). But, start adding points to existing points and the extra premium could grow exponentially.

As the points pile up, you continue to increase the statistical chance you’ll file an insurance claim, which will cost the insurance company big bucks. As a result, they’re going to punish you.

Get enough points and you might even lose your license, depending on which state you reside in. Keep that in mind if you have a lead foot. Taking the bus or “going green” on a bicycle may be your only option.

If you received a point recently and are coming up on renewal, or already saw your insurance rate shoot up, consider speaking with an independent agent, one who can shop your rate with scores of insurers all at once to determine who will take you on at the lowest cost.

You may be surprised to find that even after 1 point, your rate could be lower if you switch insurance companies.

Read more: 10 ways to lower your car insurance premium.