car insurance

When a driver is involved in a motor vehicle accident, their driving record is updated to reflect the accident and any charges that result. Many states use a system called “points” to keep track of the number and severity of a driver’s moving violations, including accidents. Conviction records are sent to the driver’s state department of motor vehicles. The number of points levied for moving violations varies depending upon the state you live in. You may lose your license if a certain number of points are reached or if the violation is of a severe nature. Point Systems vary from state to state, but below is a list of violations that would require the addition of “points” to your record. Next to each violation is an example of the number of points possible.

  • Violation of restriction on driver’s license–wearing glasses, etc. - 2 points
  • Violation concerning license - 3 points
  • Failure to obey policeman or authorized person - 2 points
  • Failure to stop for a red light - 3 points
  • Failure to stop for a flashing red light - 3 points
  • Failure to yield half of roadway to oncoming vehicle - 3 points
  • Improper passing - overtaking vehicle on left - 3 points
  • Improper passing on the right - 3 points
  • Improper passing on the left - clear distance ahead - 3 points
  • Improper passing on a hill - 4 points
  • Improper passing at a railroad crossing or intersection - 3 points
  • Improper passing at a bridge or tunnel - 3 points
  • Improper passing in a non-passing zone - 3 points
  • Following too closely - 3 points
  • Failure to yield to driver on the right at intersection - 3 points
  • Failure to yield to oncoming driver when making left turn - 3 points
  • Failure to stop at stop sign - 3 points
  • Failure to yield at yield sign - 3 points
  • Failure to yield when entering or crossing roadway between intersections - 3 points
  • Improper turning around / illegal U-turns - 3 points
  • Failure to stop for flashing red lights or gate at railroad crossing - 3 points
  • Failure to stop when entering from alley, driveway or building - 3 points
  • Failure to stop for school bus with flashing red lights and stop arm extended (60 day suspension) - 5 points
  • Driving too fast for conditions - 2 points
  • Exceeding maximum speed:
    • 6 to 10 - 2 points
    • 11 to 15 - 3 points
    • 16 t 25 - 4 points
    • 26 to 30 - 5 points
    • 31 and over - 5 points
  • Exceeding special speed limit in school zone - 3 points
  • Failure to yield to pedestrian in cross walk - 2 points
  • Improper backing - 3 points
  • Careless driving - 3 points
  • Leaving the scene of an accident involving property damage only - 4 points

Insurance companies determine a driver’s rates by reviewing their driving records. Convictions for offenses such as DUI, reckless driving or speeding have a bearing on your insurance rates. Even if you have had a clean driver record most of your life, one auto accident can increase your yearly insurance payments. It may not even matter if the accident was not your fault.  Your insurance company may still have to pay your claim in certain circumstances. For example, if you are in an accident and the other driver does not have any insurance at all.

The size of the increase will vary by insurance company and by state. Some companies will increase the premium by 40 percent of their base rate. (The base rate is the average amount of claims paid by that company plus the insurance company's claims processing fee.) Others will increase the premium by 40 percent of what you were paying before the car accident. Your location, your age, and the number of claims made by drivers similar to you will also affect your rates.

The bottom line is that you do not want to be in a car accident. If an accident is severe, there may be physical injuries and property damage, or you may be charged with an offense if you have broken a traffic law. An increase in your insurance rates could be the least of your concerns. Drive defensively, use caution and always obey all traffic laws and traffic signs posted.

For more information on car accidents, see our Automobile Accidents page.