Got points? Count the cost…

Is it time to renew your car insurance policy? Well, we have good news and bad news.

If you’ve been unfortunate enough to pick up three penalty points in the last 12 months – firstly, we hope you notified your insurers at the time, and haven’t waited till your renewal, and secondly, the bad news is that they will add an estimated £209 to your annual premium. As if the fine wasn’t enough, that’s around £300 you’ll pay in just one year for a simple misdemeanour.

However, it’s not all bad news. If it’s your first three points, you’ll escape mostly unscathed from any price hike in your car insurance with an increase of a maximum £200. It’s only when you’re going from 3 to 6 points that you’ll see the jump. With an average policy costing £750, that points increase will leave your premium at a whopping £1,159. For 12 points, you’re looking at spending £1466 each year, meaning for the 3 years you hold the points it’s going to cost you £2,148 in additional costs. And who is the main culprits? Yes, it’s men, racking up 70 percent of points added to driving licenses.

The total cost of additional premiums as a result of points on your license adds up to a whopping £230 million in the UK alone. Most of these points are as a result of speeding violations, with running a red light and using a mobile whilst driving are second and third in the ‘why we’ve got points’ story. The good news is that for 73 percent of those handed a speeding fine, it’s changed how they drive and made them take more care to follow the speed limits. 

Not all, but some insurers will also hike premiums if you have attended a speed awareness course, but this varies from insurer to insurer, with some not even asking to be notified. However, it will not be by the same amount as taking the points, so still represents the best option if you are given the opportunity to take one.

Of course, the best option is to not speed in the first place but if you do, be prepared for the price hike to follow. Thankfully, our pool of insurers gives you the best possible head start in finding the most competitive deal, points or no points.

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