Will the points on my licence affect my car insurance premium?
Jason Barker • April 3, 2023
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?’
We would like to extend a huge well done to Paul for achieving his High Voltage Technician qualification with the Volkswagen Group.
We have some exciting news to share!
Understand young driver excess and how it impacts your car insurance premiums. CARS of Grimsby offers expert advice to help new drivers make informed choices.
Many insurance companies use no-claims discount (NCD) to reward their drivers for not making a claim during a specified timeframe, usually a policy year. This, in turn, encourages sensible driving behaviour. For example, if four years pass by without a customer making a claim on their policy, they will have earned four years’ worth of no-claims discount. This discount usually results in a reduction in premium costs upon policy renewal. The discount will depend on the insurance company’s specific terms and the number of consecutive claim-free years. In some cases, there may be a maximum limit to the number of years of NCD that can be accumulated, and this should be checked with insurance companies on a case-by-case basis. Protected no-claims discount differs from standard no-claims discount in the way that an insurer may allow for more than one claim to be made before the discount is lost or reduced. A fee may be payable for this added layer of protection, commonly in the form of slightly higher premiums. We always encourage our customers to opt for the highest level of protection when it comes to their NCD. This will ensure that they have a greater level of cover if the worst happens. Always remember that if you’ve been involved in an accident that wasn’t your fault, we have a method here at CARS which enables us to repair your car without impacting your NCD, even if it’s not protected. We also have various excess support options available to our customers. Call us on 01472 453622 for further information. Visit our blogs ‘ How do I choose the right insurance company for me? ’ and ‘ I’ve had an accident; do I have to pay my excess? ’ for further information.
A non-approved repairer excess is an additional sum that will be charged in the event that you do not use one of your insurer’s approved (preferred) garages when you make a claim. The non-approved repairer excess is commonly in the region of £250, and is charged on top of the compulsory and voluntary excess. Unfortunately, this additional excess is becoming more common and it’s increasingly difficult to find a policy without one. However, it’s important to remember that it is your right to take your vehicle to any repairer of your choice. Sometimes, a phone call with your insurer is enough for the additional excess to be removed but in more stubborn cases where your insurer is not willing to negotiate, we offer various excess support options to our customers to reduce the total amount payable. We feel that this is unfair, given that in most cases approved/ preferred repairers are allowed to fit second-hand or non-genuine parts. In comparison, here at CARS, we only use new and genuine parts. Additionally, we have an excess support package available to our customers, where the non-approved repairer excess may not be payable. If you need to make an insurance claim, don’t hesitate to get in touch with us to see how we can help you.
CARS of Grimsby explain key fine print details in car insurance, from excess to non-genuine parts, helping you avoid hidden costs and protect your cover.
With the ever-increasing cost of living, we’re all on the hunt for ways to save money wherever we can. Car insurance costs have been on the rise for some time, especially for 17- to 24-year-olds. To ease these costs, it’s not uncommon for young drivers to add an older and more experienced driver, such as a parent or carer, to the policy. Listing the parent or carer on the policy as the main driver when they are not, is known as fronting and is illegal. Car insurance fronting is a type of insurance fraud and could result in a penalty such as points on your license, a fine or a driving ban. Unfortunately, fronting isn’t always detected by insurance companies. One of the main ways it could be discovered is when a claim is made, and an insurer identifies that the main driver has been disclosed incorrectly. This could result in them refusing to pay out for the claim, or they may even cancel the policy in full. You should always ensure that any information you disclose to an insurance company is correct. If you are a young driver and you’re looking at ways to lower your insurance costs, our blogs ‘ How can I reduce the cost of my car insurance as a young driver? ’ and ‘ What is black box car insurance? ’ may be useful for you. Don’t hesitate to get in touch with us for further advice.
Traffic sign recognition systems use camera technology to scan the road ahead for traffic signs. This then connects to image processing and recognition software which makes a note of any changes and potential obstructions, before relaying a signal to the vehicle’s interior control panel or dashboard. Whilst not a necessity, this is extremely useful when travelling in an unfamiliar area, or where you are unaware of the speed limit. Like other ADAS components, traffic sign recognition is not a replacement for human due diligence and attention.
Learn how blind spot detection works from CARS of Grimsby, your local independent accident repair centre. Stay safe with ADAS insights and driving tips.
Should I admit liability after an accident? When customers phone us after an accident, we always tell them never to admit liability in the first instance. Whilst you can try and predict how you’ll react after an accident, you’ll never really know for sure until it happens. It’s an extremely stress-provoking and emotional experience, so we always recommend taking as much information as possible from the scene and phoning CARS to find out what to do next. After the accident occurs, we recommend gathering the following information: Personal details and insurance policy information for all parties involved Personal details of any witnesses Details of all vehicles involved, including registration, make and model Date and time of the incident Images/ videos of all vehicles involved, with close ups of all damage where possible Images/ videos of any road markings Dash cam footage, where available A note of the weather conditions at the time of incident As above, we always recommend contacting CARS before your insurance company. This can help you to avoid any pitfalls, and ensure you receive accurate and non-biased advice, tailored to your individual circumstances. Remember, don’t apologise or admit responsibility for anything that has occurred until you are completely aware of what happened. This will protect you if the accident wasn’t your fault, and liability will be determined fairly via evidence provided. If you want to discuss an accident you’ve been involved in, regardless of whether you were at fault, don’t hesitate to get in touch with us today.
