Best Auto Insurance Companies That Don’t Penalize for Points (2021)

Finding auto insurance companies that don’t penalize for points is challenging, as your driving record is the most crucial factor in determining your auto insurance rates. Bad drivers significantly more a month on auto insurance than drivers with clean records. Consider taking a driving course to improve driving skills and remove points from your license. If you have a bad driving record, compare auto insurance companies that don’t penalize for points and those that do.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 23, 2021

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What You Should Know

  • Driving violations, such as speeding and DUIs, can add points to your license
  • Points on your license can lead to much higher auto insurance rates
  • Taking a defensive driving course can remove points from your license and lower your insurance rates

Your driving record is an essential factor auto insurance companies use to determine your rates. Drivers with a bad driving record are considered a higher risk to insure than drivers with good driving records.

In most states, drivers get points on their driver’s license for infractions, turning into insurance points. Ultimately, these points increase your auto insurance rates.

While finding auto insurance companies that don’t penalize for points can be tricky, some companies charge lower rates regardless of if you have points. You’ll have an easier time finding auto insurance companies that do penalize you for points.

To find the best deal for you, shop around and compare rates from auto insurance for drivers with points.

Keep reading to learn more about the best auto insurance companies that don’t penalize for points on your license.

Ready to find affordable auto insurance companies that don’t penalize for points and those that do? Enter your ZIP code into our free tool now to compare quotes from auto insurance companies that don’t penalize for points near you.

Which auto insurance companies don’t penalize you for points on your license?

Every auto insurance company you look at cares about what’s on your driving record. It’s a good indication of how you will drive in the future and whether you will cost the insurance company money.

Because your driving record is so critical, it can be hard to find low rates from auto insurance companies that don’t penalize for points. However, some companies penalize you less than others.

Take a look at this table that shows you the average annual auto insurance rates for the top companies based on driving records.

Average Annual Auto Insurance Rates by Driving History
Auto Insurance CompaniesAverage Annual Rates with A Clean RecordAverage Annual Rates with One AccidentAverage Annual Rates with One DUIAverage Annual Rates with One Speeding Violation
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
GEICO$2,145.96$3,192.77$4,875.87$2,645.43
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
USAA$1,933.68$2,516.24$3,506.03$2,193.25
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As you can see, USAA has the best insurance for bad driving records, followed by GEICO and State Farm. State Farm even offers the best second chance car insurance for drivers with DUIs and more.

Learn more about auto insurance companies that don’t penalize for points and those that do in our insurance reviews, like our GEICO auto insurance review and more.

Even though these companies offer lower rates for drivers without clean records, bad driving can raise your rates by around significantly. If you have multiple tickets, accidents, or DUIs, your rates will skyrocket.

Although most auto insurance companies penalize for points will be much higher, rates will differ for each driver and each auto insurance company.

If your driving record is bad enough, you can be labeled by companies as a high-risk driver. But, unfortunately, finding affordable car insurance for high-risk drivers is next to impossible.

Some traditional companies offer high-risk auto insurance, and there are even some that specialize in it. However, high-risk insurance costs are very high no matter which type of company you go with.

What is the difference between insurance points vs. license points?

In most states, when you commit a driving violation, you are given a ticket. Depending on the severity of the violation, you can also be issued points on your driving license.

The purpose of driver’s license points is to penalize drivers who repeatedly break the law.

Once you have enough driver’s license points, your license can be revoked or suspended. The number of points issued and how long they stay on your driving record will vary by state.

For example, how long at-fault accident points stay on your record may be different than speeding points.

However, the auto insurance point system is different. Essentially, auto insurance companies look at various factors, including your driving record, to determine insurance points.

This process is not discussed by insurance companies and varies from company to company. However, the insurance points affect your rates and cause you to pay more in auto insurance rates.

We recommend reviewing your auto insurance options and comparing rates before you buy. Doing so will allow you to understand your options and find the best car insurance for a bad driving record.

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How can drivers with points save money on auto insurance?

As a driver with points on your driver’s license, you will pay higher auto insurance rates than those without points. However, there are ways you can get cheaper rates.

For example, auto insurance discounts are a great way to lower your rates. However, unlike a good driver discount, not all discounts depend on your driving record.

Additional types of discounts include those based on your auto insurance policy, like multi-car discounts and discounts based on the features that come on your car, like your collision warning system.

Some auto insurance companies will even reduce auto insurance rates for drivers that take a defensive driving course. Not only can you get an insurance discount, but some states even deduct points from your license for taking the class.

The last option is to wait for the points to come off on their own. How quickly points come off varies by state. If you are curious, you can request a copy of your driving record from your local DMV to make sure you are aware of everything listed.

Auto Insurance Companies That Don’t Penalize for Points: The Bottom Line

Finding rates from auto insurance companies that don’t penalize for points can be challenging since all auto insurance companies are very concerned with your driving record.

If you have points on your license, you can ask for auto insurance discounts and take a defensive driving course to lower your rates.

We also recommend that you shop around for auto insurance coverage. Each company will look at your points differently, and looking at multiple auto insurance companies that don’t penalize for points will help you find the lowest rates.

Ready to buy auto insurance from auto insurance companies that don’t penalize your driver’s license points? Enter your ZIP code into our free tool to compare quotes from auto insurance companies in your area today.

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