Will penalty points on my licence affect insurance?

If you have recently received penalty points on your driving record, you may be wondering how this will affect your insurance.

Generally, drivers with points from motoring endorsements or convictions can still get insurance, but fewer insurers will cover them and many will charge more.

This article answers your questions about how points on your licence affect how much you pay for insurance.

Will points affect my insurance?

If you have received points on your licence or have a criminal record, you may find that insurance quotes are more expensive and fewer companies are willing to cover you.

This is because insurance premiums are calculated by considering the risk factors associated with a given customer. If a driver has endorsements, the insurer will predict that they are more likely to make an expensive claim.

If you already have insurance and you get a conviction, most insurers will only ask you to declare the conviction code when you renew your policy. This is typically when many drivers see their premiums increase.

How do insurance companies calculate risk?

The specifics of an insurance risk assessment will vary from company to company. However, most will base their decision on the severity of the convictions. For example, an endorsement for driving under the influence is likely to cost you more than driving with a defective tyre.

Do you have to disclose convictions?

Under the Road Traffic Act 1998, you are legally required to inform your insurer if you receive any points on your licence.

When to disclose driving convictions

If you are applying for insurance, insurers will ask you for details on any endorsements. If you’ve already taken out an insurance policy but you receive the conviction during your policy, you may find that your insurer doesn’t ask until you renew your policy. However, some insurers will state in their terms and conditions that you must inform them as soon as you get points on your licence.

What happens if you don’t disclose a conviction?

If you do not disclose driving endorsements to your insurer and then try to make a claim, they can refuse to pay.

What about when my penalty points expire?

Some points expire, or are ‘spent’, sooner than others, with exceeding a speed limit on a public road lasting four years and reckless driving sometimes remaining on your licence for 11 years.

Many insurers and insurance brokers will request any conviction details from within the last five years, regardless of if they’ve been spent or not. So even if your penalty points expire, you might still have to declare them when you’re taking out insurance.

Read our dedicated guide if you are unsure how to check if you have points on your licence.

Does insurance go up if you get points?

The more points you have on your licence, the more expensive your insurance is likely to be. If you have three points on your licence for an offence like speeding or not complying with traffic lights, your car insurance could increase by 5%. If you have more than 12 points on your licence, the annual cost of your insurance could rise by 89%.

Insurers often charge more if drivers have speeding-related offences, even if they have fewer points. This is because the risk factor assumes those speeding are more likely to cause an accident.

If you accrue more than 12 points on your licence within a three-year period, you will have your licence revoked and will not be able to purchase car insurance. The period of the disqualification will be up to a court decision, but if the ban lasts for 56 days or more, you will need to apply for a new licence. Read our blog to find out more about totting up too many penalty points. 

New drivers can have their licence suspended after receiving six points and will have to pass a new test in order to get their licence back.

According to ThisIsMoney, receiving between one and three points on your licence will only increase the price of your insurance by 5%. However, more than 12 points can almost double the cost.

Get affordable car insurance from Adrian Flux even with points on your licence

If you have received points on your licence and are looking for insurance, Adrian Flux is a specialist in offering cover for convicted drivers. Speak to our experienced staff on 0800 369 8590 for a quote, or book a callback at a time that suits you.