Licence penalty points can be given for several driving offences, the most common being speeding or dangerous driving. The number of points received usually depends on the offence committed. The more serious the offence, the more points received and the higher the potential increase in insurance costs.

If you hold penalty points on your licence, you may pay more for cover, and some insurers might be unwilling to cover you at all. This is because insurance companies calculate the premiums payable based on the risks associated with each individual customer and their individual circumstances.

You are obliged to inform your insurer of any current points on your licence at policy commencement. Please also note that some insurers state in their terms and conditions that they must be notified of any additional points received during the policy term. If you do not disclose penalty points or driving offences to your insurer and then try to make a claim, they may refuse to pay out in full or sometimes, they may not pay out at all.

Whilst it’s not a particularly bad idea to compare car insurance quotes online, it’s not always easy to understand the policy terms and requirements. Simply selecting the cheapest cover could cost you far more if you need to make a claim.

Therefore, we always recommend using a local broker who will ensure you have a policy which meets your needs and will also be there if the worst should happen. If, however, you do choose to purchase your cover online, make sure you read the small print and call the provider to confirm the details with you.

You should consider the cost, level of cover and the voluntary excess you would be able to pay in the event of making a claim. For further information, please visit our blog ‘How do I choose the right insurance company for me?’

If you have points on your licence and are concerned about the potential increase in insurance costs, there are a number of variables you could consider to lower the premiums payable:

• Consider fitting a telematics device – Telematics devices, known commonly as black boxes, monitor driving styles and provide real-time data to your insurance company. This encourages safer and sensible driving, for which insurance companies may offer lower premiums. In turn, less erratic driving will increase the lifespan of your vehicle.

• Increase the voluntary excess amount – Usually, the higher the excess, the lower the premiums. However, you should note that you will be required to pay the excess amount in the event of a claim, so you should make sure you select an excess that you can afford.

• Increase your safety measures – The cost of your insurance may increase if your car is parked on a road, rather than a secure garage. You should park your vehicle in a garage if possible.

• Have a dash cam fitted – Some insurance companies may offer reduced premiums if you have a dash cam fitted to the vehicle. You should check with the insurance company to identify if this is a possibility for the policy type you are considering. For further information, please visit our blog ‘Will having a dash cam reduce the cost of my car insurance?’