Rack 'Em Up: How Points Influence Auto Insurance Rates

Did you ever stop to wonder how insurance companies decide how much to charge you for insurance coverage? If you have a cinematic image in your head of a bunch of greedy tycoons sitting in a back room passing around a photograph of you and trying to determine how much money they can bilk you out of, you’re far off the mark. The price you pay actually has everything to do with your driving record. And even if you’re not in the process of getting a comprehensive car insurance quote, it’s still in your best interest to understand how the demerit point system works so that you can lessen the bite of the sometimes painful reality of high insurance rates.

The Demerit Point System
Each infraction you commit behind the wheel puts “points” on your driving record. The more points you have, the worse of a driver you are in the eyes of the DMV and anyone you approach to compare car insurances. Insurance providers rely on you to come clean about your driving record so that they can give you accurate auto insurance quotes, but they also verify the accuracy of the information you give them prior to making a solid offer. Each insurance company has established a firm set of rules determining how much sway your points will have on the money scale, just as each state in the country assigns different point values for certain violations.

Knowing Your Driving Record Can Help Ensure You Get an Accurate Auto Insurance Quote
You should never enter into any sort of insurance contract—whether you’re talking about car insurance, home insurance, health insurance, or life insurance—without keeping your eyes wide open and understanding exactly what you’re doing at every step. When it comes to getting a comprehensive car insurance quote, you have to know going into it what to expect. Knowing exactly what’s on your driving record and how many demerit points (if any) you have is critical. Not only will it save you from the inevitable “dollar sign shock” that always accompanies a much higher figure than you were prepared to pay, but it’ll also move you to take care of any outstanding issues on your driving record. To order a copy of your driving record, contact your local DMV and follow their instructions to the letter. This may require you to jump through a few hoops (as anyone who’s ever had to deal with the Department of Motor Vehicles for any issue can certainly attest) but in the end, it’ll be well worth the effort.