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Car Insurance with Points on Licence

Do You Have to Tell Insurance About Points Straight Away? 

Scott Nelson MoneyNerd Janine Marsh MoneyNerd
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Scott
Scott Nelson MoneyNerd

Scott Nelson

Debt Expert

Scott Nelson is a renowned debt expert who supports people in debt with debt management and debt solution resources.

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Janine
Janine Marsh MoneyNerd

Janine Marsh

Financial Expert

Janine is a financial expert who supports individuals with debt management, cost-saving resources, and navigating parking tickets.

Learn more about Janine
· May 21st, 2024
Find affordable car insurance for drivers with convictions and points by answering below

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The information in this article is for editorial purposes only and not intended as financial advice.

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tell insurance points straight away

The information in this article is for editorial purposes only and not intended as financial advice.

Are you trying to find cheap car insurance but worried about points on your driving licence? You’re not alone. Over 9,300 people like you visit our website each month seeking guidance on this very topic.

Here’s what you’ll learn in our guide:

  • Understanding what penalty points are and how they affect your driving licence.
  • How penalty points can change your car insurance costs.
  • When and how to tell your insurer about your penalty points.
  • Finding car insurance even with points on your licence.
  • Tips for reducing your car insurance costs, despite having points.

The Guardian reports that each year in the UK, around 1.2 million people face the challenge of securing car insurance because mainstream insurers typically refuse coverage to those with unspent convictions.1

We know how frustrating and worrying this can be. But don’t worry; there are ways to handle this situation.

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When do I have to declare my conviction to my insurer?

In most cases, if you are convicted of a driving offence during your cover, you don’t have to let your insurer know until you renew your cover.

Do I need to inform my insurance company of a speeding ticket UK?

However, some insurers state in their policy terms and conditions that you must tell them about driving offences, like speeding, when they happen.

Check your insurance details for a declaration timeline if you are unsure.

If you don’t disclose your unspent convictions when asked, your insurance will be invalid. Insurers can even get their money back from you if you’ve made a claim with them.

Here on MoneySavingExpert, this forum user has been issued three points and wants to know if they should declare them at renewal.

The answer is ‘Yes’. They should declare their points at the next renewal.

Failing to do so during the renewal process could compromise their insurance. Three points for a minor conviction might not affect your premiums much (usually around 5%).

The points carry endorsement codes that inform your insurer about your driving infractions. This helps them determine how much of a risk you are.

Convictions include:

CONVICTION CONVICTION CODE POINTS
Accident Offence AC 4-10
Careless Driving CD 3-11
Drink Driving DR 3-11
Drug Driving DG 3-11
Speeding SP 3-6

Convicted Driver Insurance Increase

I’ve put together this table to help you better understand the impact points on your licence can have on insurance costs.

Points on License Estimated Average Rate Increase
1 – 3 Points : This range usually covers minor offenses. Insurance rates may increase but not excessively. 5% – 20%
4 – 6 Points : This range might indicate repeat offenses or a more serious violation. Insurance premiums are likely to rise more significantly. 20% – 40%
7 – 9 Points : At this level, the driver is considered high-risk. This can lead to substantial rate increases. 40% – 60%
10 – 12 Points : Accumulating this many points might lead to a driving ban. If insurance is offered, it would likely be at a very high rate. 60% – 100%+

What happens if you don’t tell insurance about it?

You must declare your points when you renew your insurance. If you don’t, they might cancel your policy.

At this point, you’ll likely struggle to find anyone to cover you.

When you apply for a new policy, you’ll be asked if you’ve ever had a policy cancellation. If you have, you’ll find some insurers won’t continue to issue a policy.

When do I need to let my insurer know if I’ve been banned from driving?

You need to inform your insurer immediately if you receive a ban.

According to UK driving regulations, certain offences, like driving with alcohol levels above the limit, carry up to 11 penalty points and a minimum 12-month ban.

You can still get insurance after a ban for drink driving (or other offences). You might be best using a broker or looking for an insurer specialising in insuring drivers after a ban

If you commit a driving offence and receive penalty points, check the insurance small print in case your insurer requires you to notify them immediately. 

Most don’t. In most cases, you can wait until your insurance renews.

At this point, you MUST make your insurer aware of your offence and points. Your premiums may then increase. Do shop around and consider making other amendments to help reduce the cost.

» TAKE ACTION NOW: Find the best insurance for drivers with points

Not telling your insurance company about your points is an offence.

Besides invalidating your policy, if you drive a vehicle uninsured, you could risk getting more points on your licence and prosecution.

Not to mention, you will probably not be covered if you get into a motor accident.

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How will points affect my car insurance?

The amount your points affect your insurance premiums will depend on the severity of the offence committed.

You’ll receive between three and eleven points, and the coinciding code tells your insurer what the offence was and, therefore, how risky you might be as a driver.

Driving over the speed limit generally incurs three points. This will rise around 5-10% on your premiums. 

Offence severity and insurance

A more severe offence – like driving with alcohol levels above the limit – can incur a ban and 11 points on your licence.

This is a DR10 offence and will put you in the high-risk driver classification, and your insurer will likely significantly raise your premiums at the least. 

From my experience, some insurers won’t insure you at all, and you may have to use a broker or look for a specific DG10 insurer.

Penalty points and young or new drivers

Novice drivers who have received six or more points within two years of passing their test can expect their licence to be cancelled.

Also, many insurance companies consider young drivers under the age of 25 to be a risk, so there are premium hikes for young drivers.

Loopholes in policy

Although your insurance will likely go up if you have committed an offence and received penalty points, there are alternate resolution options to avoid points on your licence.

There are a few legal ways to avoid penalty points.

For instance, if you have been given the chance to take a Speed Awareness Course as an alternative to point or were issued a Fixed Penalty Notice.

How do I get cheaper car insurance if I have penalty points?

It is still worth shopping around for a good deal on your insurance, even with points.

Your insurance premiums will increase if you have penalty points, as your insurer will see you as a risky driver. However, that increase begins at around 5-10% with three points on your licence. It increases if you are looking for insurance after being disqualified from driving. 

It’s worth looking at comparison websites like gocompare.com or comparethemarket.com for bargain insurance with points on your licence.

Alternatively, you could try approaching a broker who can find you the best deal.

If you are looking for insurance following a ban, know the code of your offence (i.e. a DR10 for drink driving) and look for an insurer who explicitly covers that code.

As I see it, you should be honest with your insurer. Holding back any information can affect your insurance.

Tips for drivers with points

You can also take other steps to help bring down the amount of your insurance premiums.

They include things such as:

  • Parking your car on a driveway
  • Getting black box insurance
  • Installing a better security system on your car
  • Increasing your excess amount

After receiving points, it is important to try and maintain a clean record to ensure your premiums don’t increase further.

Depending on the offence, some drivers with points on their licence might be offered defensive and refresher driving courses to help them become better drivers. In some instances, this could reduce premiums.

Find affordable car insurance for drivers with convictions and points

Answer below to get started.

0 points

What is your vehicle type?

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In partnership with Quotezone.

References

  1. The Guardian – Insurers’ Ban on Unspent Convictions
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The authors
Scott Nelson MoneyNerd
Author
Scott Nelson is a renowned debt expert who supports people in debt with debt management and debt solution resources.
Janine Marsh MoneyNerd
Insurance Expert
Janine is a financial expert who supports individuals with debt management, cost-saving resources, and navigating parking tickets.