Auto Insurance Companies That Don’t Penalize for Points (2021)

Finding auto insurance companies that don't penalize for points can be daunting since your driving record is the most important factor in determining your auto insurance rates. In fact, bad drivers can pay around $150 a month extra for auto insurance. Consider taking a driving course to improve driving skills and remove points from your license. If you have a bad driving record, look for car insurance companies that don't penalize for points to keep rates low.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Sep 28, 2021

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A Concise Overview

  • Driving violations can add points to your license
  • Points on your license can translate to much higher auto insurance rates
  • Take a defensive driving course to remove points and lower rates

Your driving record is a significant factor auto insurance companies use to determine your rates. Drivers with a bad driving record are considered much riskier to insure.

In most states, drivers receive points on their driver’s license for infractions, which can turn into insurance points. These points drive your car insurance rates higher.

While finding car insurance companies that don’t penalize for points can be tricky, some companies charge lower rates even if you have points.

Shop around and compare rates from car insurance for drivers with points to find the best deal for you.

Keep reading to learn more about auto insurance companies that don’t penalize for points on your license. Enter your ZIP code now to compare quotes from auto insurance companies near you for free.

Which auto insurance companies don’t penalize you for points on your license?

All auto insurance companies care about what’s on your driving record. It’s a good indication of how you will drive in the future and if you will cost the insurance company money.

Because your driving record is so important, it can be hard to find low rates from auto insurance companies that don’t penalize for points, However, some companies penalize you less than others.

Take a look at this table that shows you the average annual auto insurance rates for the top companies based on driving records.

Average Annual Auto Insurance Rates by Driving History
CompaniesAverage Annual Rates with a Clean RecordAverage Annual Rates with One AccidentAverage Annual Rates with One DUIAverage Annual Rates with One Speeding Violation
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
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USAA, GEICO, and American Family offer some of the lowest rates to drivers with a less-than-stellar driving record.

Bad driving can raise your rates by around $150 a month. If you have multiple tickets, accidents, or DUIs, your rates will skyrocket.

Although most rates from auto insurance companies that do penalize for points will be much higher, rates will be different for every driver and every company.

If your driving record is bad enough, you can be labeled a high-risk driver. Finding affordable car insurance for high-risk drivers is next to impossible.

Some traditional companies offer high-risk auto insurance, and there are some that specialize in it. Rates are very high no matter which type of company you go with.

What is the difference between insurance points vs. license points?

In most states, when you commit a driving infraction you are given a ticket. Depending on the severity of the infraction, you can also be issued points on your driving license.

According to Nolo, the purpose of driver’s license points is to penalize drivers who repeatedly break the law.

Once you accumulate enough driver’s license points, your license can actually be revoked or suspended. Points issued and how long they stay on your driving record will vary by state.

For example, how long at-fault accident points stay on your record may be different than points for speeding.

The car insurance point system is different. Basically, auto insurance companies look at various factors, including your driving record, and determine insurance points.

This process is not discussed by insurance companies and varies from company to company. However, the insurance points affect your rates and can require you to pay much higher rates.

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How can drivers with points save money on auto insurance?

If you have points on your driver’s license, you will pay higher auto insurance rates. However, there are ways you can get some relief from those high rates.

Auto insurance discounts are a great way to lower your rates. Not all discounts depend on your driving record like a good driver discount does.

Other types of discounts include discounts based on your policy, such as multi-car, and discounts based on the features that come on your car, such as your collision warning system.

Another way to lower your rates is to take a defensive driving course. Not only can you get an insurance discount, but some states even remove points from your license for taking the class.

You can also just wait for the points to come off. How quickly that happens varies by state. You can request a copy of your driving record from your DMV to make sure you are aware of everything listed.

Auto Insurance Companies That Don’t Penalize for Points: The Bottom Line

Getting quotes from auto insurance companies that don’t penalize for points can be hard since all companies are very concerned with your driving record.

If you do have points, you can ask for insurance discounts and take a defensive driving course to lower your rates.

You should also shop around for coverage. Each company will look at your points differently, and comparing multiple companies can help you find the lowest rates.

Now that you know about auto insurance companies that don’t penalize for points, enter your ZIP code to compare free quotes from companies in your area today.

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