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?

You are required to disclose points or convictions in accordance with your insurer’s policy terms and when asked during applications, renewals, or policy amendments.

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. In some cases, they might cancel your policy, which can impact your ability to take out insurance in the future.

When do penalty points expire vs. become ‘spent’?

People often use ‘expired’ and ‘spent’ to mean the same thing when it comes to penalty points, but they’re actually governed by two different rules:

• DVLA rules (points expiry): for most minor offences, points remain active on your driving record for three years (counting towards a totting up ban) and are completely removed by the DVLA after four years. More serious offences like dangerous driving stay on your record for 11 years.
• Rehabilitation of Offenders Act (Insurance Disclosure): under UK law, standard motoring endorsements generally take five years to become legally spent

What does this mean for your insurance?

As endorsements usually take five years until they’re spent, most insurers will ask if you’ve received any points or convictions within the last five years.

Even if you’ve passed the four-year point when more minor offences have been removed from your DVLA record, the conviction isn’t legally spent until five years have passed. This means you must still declare it if asked. Once a conviction is officially spent, you are legally no longer required to disclose it to insurers.

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 to 15%. Six points on your licence could hike your premium by around 25 to 30%. If you have more than 12 points on your licence, the annual cost of your insurance could rise by up to 75%.

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 suspended. 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. 

What happens to my insurance if I get penalty points on a new licence?

New driver insurance is notoriously expensive. When you first pass your test, you are automatically classed as a high-risk driver and will pay much higher insurance premiums than experienced drivers.

In general, the legal consequences of penalty points are also far more stringent for new drivers. Unlike experienced drivers, who usually need 12 points to be suspended, if you accumulate six or more penalty points in your first two years of driving, your licence will be revoked, and you will have to pass a new test to get it back.

In addition, if you have received penalty points on your provisional licence, then, unless they have expired, these points will transfer to your full driving licence when you receive it. 

Accruing points can make it more difficult to find affordable car insurance, as they will often lead to you paying higher premiums. You are required by law to disclose any points to your insurance provider, who will take them into account when calculating a quote. 

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.