Penalty Points Can Add 60 percent To Cost Of Car Insurance

03 July 2008 / by Rachel Mason

Drivers with penalty points can pay up to 60 per cent more for their car insurance than those with a clean licence.

According to price comparison site, drivers who have points on their licenses really pay for it when it comes to car insurance, paying on average £370 more than drivers with no points.

And for younger drivers, the financial consequences are even worse –’s study shows that a 21-year-old female Mancunian 1.3 Ford Fiesta driver would see her premiums rise by 92 per cent – up to £895 – if she received six penalty points. If she was careless enough to receive nine points, the result would be a 210 per cent increase.

And, despite the fact that women traditionally pay less for their car insurance than men, has found that older female drivers get penalized more than their male counterparts.

Its data revealed that a 55 year old Bristol woman driving a 3.0 BMW M5 would see an 81 per cent rise in her premiums while a man of the same age driving the same car would only see his premiums rise by 49 per cent.

“As well as suffering from additional insurance costs immediately after gaining points on a licence, motorists are often asked by insurance companies whether they have received points in the last five years. If the answer is yes, insurance premiums remain high long after the points have expired,” explains Carlton Hood from

“However, steep financial penalties do not seem to be acting as a deterrent, with a worrying 3.2 million driving convictions recorded on in the last twelve months.”

Mr Hood says that while speeding is a tempting option for some, the consequences far outweigh the benefits.

“Saving two minutes on your journey time by skipping a red light or driving over the speed limit not only endangers yourself and others around you, but you are risking a large fine, a tarnished licence and potentially higher insurance premiums,” he said.

© Fair Investment Company Ltd

Written by Editorial Team