Car Insurance with Points

It may seem a shocking figure, but statistics hint that over two million motorists will see their driving licences receive an endorsement over the next year. Despite the encouraging name, an endorsement does not indicate that the judiciary approves of your driving abilities; in fact, it means the opposite, as it is the term used to describe the application of penalty points to a licence after a motorist commits some misdeed or other.

Back in the heady days of 2004, we conducted an experiment on unsuspecting motor insurers in order to uncover the true costs of having points on your licence. The outcome demonstrated that, all other things being equal, a motorist could expect to see a jump in the cost of their car insurance premiums ranging from anything from 28% – 44% if they had points on their licence.

Three years passed uneventfully, but in 2007 our curiosity overpowered us once again and we undertook an even more comprehensive survey which demonstrated that it was still the case that many insurance companies increased the premiums for drivers with points on their licence, despite some firms claiming that this would not necessarily occur.

And finally, in December 2009, we conducted a further review which included the fallout not just of points on your licence but also of short disqualifications and even bans for drink driving.

Our experiment was simplicity itself. We acquired a number of motor insurance quotes in the name of a fictitious human being, each iteration of which owned the same car and sought the same type of insurance cover. The only difference in the applications was whether or not they had in their past committed any one of a range of motoring offences resulting in penalty points or temporary disqualifications.

Anyone with experience filling out motoring insurance applications will be fiercely aware of the fact that they ask if you have received any such endorsements on your licence within the past five years, and that your insurance could be rendered null and void should you tell an untruth on this matter. Sadly, the truth of the matter is that this means such endorsements are likely to affect your insurance premiums for five years afterwards. If you'd like to discuss this with a legal expert, our Instant Law Line could put you in touch with a lawyer in minutes.

The overall results

The average premium without any points on a licence was £382.74, based on quotes from 66 companies for a 34-year-old human male driving a Ford C Max worth £10,000 with a voluntary £150 excess.

With 6 points (all over 4 years old)

The average increase was 7.91% to £406.23 based on quotes from 61 companies.

With 6 points (all over 3 years old)

The average increase was very similar at 8.82% to £412.88 based on quotes from 63 companies.

With 6 points (3 more than 4 years and 3 less than 2 years)

Taking into account the more recent points, the average increase was 14.31% bringing the premium up to £433.48. This was based on quotes from 62 companies.

With 6 points (all within the last 2 years)

All insurers raised their premium at this point - with the increases usually in the double digits. The biggest increase was a whopping more than 85%. The average grew by 24.35% to £472.79 based on quotes from 61 companies.

With 9 points (all within the last 2 years)

On average, with this many points, you would have to shell out half as much again as you would without any points. The average premium increased by 46.94% to £542.33 based on quotes from 49 companies.

28 Day Disqualification for speeding

This appears to be equivalent to having 6 recent points on your licence, the average premium rising by 23.35% to £468.54 based on quotes from 51 companies.

Drink Drive Disqualification

This one has a predictably devastating effect, kicking the average premium up to £580.38 - an increase of 53.37% based on quotes from 38 companies.

Many companies will treat motorists with points on their licence worse in a veritable smorgasboard of ways. We found that, not only did the premiums rise as the points piled up, but the excess payable should an accident occur was often found to increase likewise. All in all, it goes to show that it is best to shop around should you be seeking to insure a motor vehicle with points on your licence.

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