Adding three penalty points to your driver’s license has little effect on car insurance premiums, new research shows, but six or more results result in far more costly coverage.
Car insurance premiums remain largely unchanged when a driver increases their driver’s license from zero to three points. Average annual cost increases from £ 700 to £ 705, according to Compare the Market.
However, if you jump from three to six points, the average premium increases by more than £ 200 to £ 937, suggesting that this is the big tipping point, and insurers see two offenses as far more risky than someone with one assure.
The cost of insurance nudges increases the more points are added to your license, reaching an average premium of £ 1,009 for those with 12 points.
Insurance costs keep getting higher the more points are added to your license
In March 2021, 2.64 million drivers had points in their driver’s license. This emerges from the market analysis of the latest figures from the DVLA.
This is a 3 percent decrease from March 2020, when 2.72 million drivers had points on their license despite a year of driving restrictions and bans due to the pandemic.
Penalty points usually stay in the driver list for four years, although they are only active for the first three years.
For more serious crimes, such as death from dangerous driving or drink-driving, the points remain on a driver’s license for 11 years.
Currently 1.9 million UK drivers have three penalty points on their record, 517,000 have six and 84,000 have nine. Another 5,806 have twelve and 3,075 have 13 or more.
71 percent of all penalty points were given to men, and 60 percent of the points were given to drivers over 40, as the DVLA’s examination of the numbers shows.
Expensive: The higher the number of penalty points, the higher the premiums for the drivers
Looking at the latest data available from the Ministry of Transport – from 2017 to 2019 – 72 percent of all penalty points were for accelerating criminal offenses in the three years.
Another 12 percent was given for licensing, insurance and record keeping and 4 percent for dangerous or drunk driving.
Drivers can be banned from driving if they collect 12 or more penalty points within three years.
However, new drivers will have their license revoked if they earn six or more points within two years of passing the test.
For those with low speed speeding detected by automatic camera devices and police officers, they may be offered a four-hour National Speeding Course instead of adding three points to their license.
In March 2021, 2.64 million drivers had points on their driver’s license, says Compare the Market
Areas with the highest number of penalty points
Maidenhead (SL6) is the area with the highest number of drivers with points at 5,484.
It is followed by Northampton (NN3) with 4,994 and Slough (SL1) with 4,377.
Slough’s SL3 division also tops the list of 3,610 drivers who have points on their driver’s license.
Dan Hutson, Head of Car Insurance at Compare the Market, said, “Motorists may not realize the long-term costs that bad driving can add to car insurance premiums. Our research shows that the increase in rewards is often greater than the initial fine for irresponsible driving.
“Drivers are confronted with the more expensive rewards in each of the four years in which the penalty points remain on their driver’s license.”
He added that car insurance costs tend to go up when motorists are awarded points, as insurers believe it increases the driver’s risk profile.
“People with points on their license are usually more likely to have an accident and therefore pay more for their policy. Our research shows that drivers over 40 are more likely to have points on their driver’s license.
‘While we’ve seen a significant decrease in car journeys due to lockdown restrictions, it is worrying that the number of drivers receiving penalty points has remained roughly the same as last year.
“Aside from the obvious safety concerns, hopefully the financial implications should encourage drivers to be cautious on the road or run the risk of being charged much higher coverage.”
|Post Code||Area||Number of drivers with points|
|Source: Compare the Market|
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