Reader’s Question:

Are car insurance points reduced over time like DMV points are?

Daniel

Babylon, NY

Insurance points, and other factors that are used by insurance providers to decide on your insurance rates, differ by each different insurance provider. They each have their own rules and guidelines regarding how insurance points play into the whole equation.

In most cases the impact of older insurance points lessens over time. If your company adds car insurance points for different traffic infraction and accident claims, as time goes by and you receive no new violations and file no more claims it will appear that you are a safer driver and these car insurance points could be reduced.

States have insurance law and regulations that govern premium surcharges caused by accidents or convictions. For example in New York their law permit surcharges for a certain amount of time only, typically three years. New York state also has a point and insurance reduction program that driver’s can take part in to lower their insurance premiums by 10%.