OAI Discusses How Violation Points Affect Car Insurance
In a new FAQ, the writers at OnlineAutoInsurance.com discuss how accruing points on a drivingrecord can affect premium prices.
Orlando, FL, February 01, 2011 --(PR.com)-- Many states' motor vehicle departments use point systemsto track the number and severity of traffic incidents and violations involving resident drivers. Andalthough the number of points assigned to particular types of violations will vary from state to state, onething that they have in common is their potentially adverse effects on car insurance rates.The reason that points on a driving record will drive up insurance costs is they indicate to the insurer thatthe driver may have risky driving practices and may be more likely to get into accidents.In some states, though, violation points are not the only thing that can negatively impact insurancepremiums.Auto insurance companies in Florida, for instance, will undoubtedly raise rates for a driverwho has gotten a DUI, even though technically no points are issued for this violation. This is becausethose convicted of a DUI in the Sunshine State automatically have their licenses revoked, which aninsurer is likely to be notified of.One state that offers a clear-cut view of how violation points will affect the cost of coverage is NorthCarolina. As part of that state's Safe Driver Incentive Plan (SDIP), more than two dozen types of incidents or infractions are assigned points with values between one and 12, and the total numbers of points are correlated with proportional premium increases.So a North Carolinian who causes an accident that results in bodily injury damages of $1,800 or less canknow that one point will be added to their license, which brings with it a 25-percent increase inpremiums. But if the damages totaled more than $1,800, three points will be tacked on to his or herhistory, which will bring with it a 60-percent increase.Points and corresponding rate increases are clearly laid out in the SDIP grid that can be viewed athttp://bit.ly/ifEO66.To access the full FAQ regarding the point system, readers can go tohttp://www.onlineautoinsurance.com/florida/ and click on the “Questions” link in the upper right handcorner.###