Obtaining Car Insurance with Penalty Points

Penalty points on your driving licence can make getting car insurance more challenging and expensive. This guide explains how penalty points affect your insurance, when to disclose them, how long they stay on your record, and ways to reduce your premium if you have points.

Insurance companies use penalty points as a risk indicator. The more points you have, the higher the perceived risk, which can result in:

• Higher premiums – Insurers may increase your policy cost to offset potential risk.
• Limited insurer options – Some insurers may decline to offer you coverage.
• Reduced no-claims discount – Points can sometimes impact your eligibility for discounts.

• UK: Most penalty points stay on your licence for 4 years, but some serious offences (like causing death by dangerous driving) stay for 11 years.

• Ireland: Points typically remain for 3 years.

Insurers usually ask about points within the last 5 years, so even expired points may need to be declared.

• At the time of application or renewal – Always disclose any penalty points honestly.

• Immediately after receiving points (if your policy terms require it) – Some policies have a clause obligating you to report mid-term changes.

Failure to disclose penalty points can result in invalidated insurance, claim denial, or policy cancellation.

The cost increase depends on the type and number of points, as well as the insurer’s risk profile. On average:

• 3 points: 5%–10% increase
• 6 points: 20%–40% increase
• More than 6 points: Premiums can double or more, or insurers may refuse coverage

If you have penalty points, there are several ways to keep your insurance affordable:

Shop Around
Use comparison websites or brokers specialising in car insurance for convicted drivers.

Some insurers are more lenient toward certain offences.

Increase Voluntary Excess
Agreeing to a higher excess can lower your premium—but only do this if you can afford to pay it in a claim.

Take a Driving Course
Completing courses like Speed Awareness or driver rehabilitation programs may help reduce points or show insurers you’re trying to improve.

Limit Your Mileage
Lower mileage often means reduced risk and can lead to lower premiums.

Add a Named Driver
Adding an experienced, low-risk driver (like a parent or spouse) can sometimes reduce premiums.

Choose a Low-Risk Vehicle
Drive a car in a low insurance group—smaller engines, good safety ratings, and fewer modifications.

Build Your No Claims Bonus (NCB)
A strong NCB can significantly offset the cost of points.

While having penalty points can complicate obtaining insurance, it doesn’t make it impossible. Being honest, proactive, and informed is key. Compare policies carefully, take steps to demonstrate responsible driving, and explore all available discounts to reduce the financial impact.

If you’re struggling to find cover, consider specialist insurers who deal specifically with drivers with convictions or penalty points.