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How much do 3 points on your licence affect your car insurance? - Money Expert

Penalty points on your driving licence can seem minor, especially if it’s just three points from exceeding the speed limit or checking your mobile phone. However, they can have serious consequences.

Let’s take a look at exactly how penalty points affect your car insurance and what you can do to keep your premium as low as possible.

How much can 3 points increase my car insurance?

It’s impossible to predict exactly how much three penalty points will impact your car insurance premium. But you should be prepared for a potential premium increase of between 5 and 10%. This may be even higher if you’re a young or newly qualified driver.

The final increase will be decided by your insurer, who will take into account a range of different factors to assess how likely you are to cause accidents and therefore make a claim. These factors include:

  • The severity of the offence: More serious offences will have a greater impact. For example, driving over the speed limit may affect car insurance costs less than drink driving or dangerous driving.

  • Your driving record: If this is your first offence, the increase may be minor. However, if you already have points on your licence or multiple convictions, an additional three points could lead to a bigger jump.

  • The length of time you’ve had your driving licence: As well as facing higher insurance premiums, young drivers under 25 tend to be penalised more heavily for penalty points.

  • Your insurer: Not all insurers treat penalty points the same. Some may have stricter thresholds than others.

Do I have to tell my insurer about my penalty points?

Yes. You are legally required to disclose any penalty points to your insurer, but usually at renewal unless your policy documents say otherwise. However, some insurers may require you to report the penalty points as soon as you receive them, so make sure you check your policy.

You’ll also need to disclose them to any future insurers as long as the penalty points stay on your record, anywhere from four to 11 years. 

How can I lower my car insurance premium?

Penalty points will affect how much you pay for car insurance, but they’re only one part of the equation. Insurers consider a lot of different factors when calculating your price, many of which you can control to help lower your costs.

  • Age: You can't change your age, but if you're a younger driver, adding a more experienced, low-risk named driver to your policy could help reduce your premium. 

  • Address: Where you park your car has an impact on your premium, so if you’re moving, check the postcode to see if it will lower the cost. Also, it’s likely you’re paying more if you park your car on the road. Try to move your car to off-road parking, and you may see a drop in costs.

  • Occupation: Some jobs are seen as higher risk than others. You can’t lie about your job title, but trying different variations may affect your quote.

  • Mileage: The higher your annual mileage, the higher the premium will be. Avoid driving where possible and consider taking public transport to lower the time spent on the road and also your car insurance costs.

  • Car make and model: Choosing a car in a lower insurance group can significantly lower your insurance fees.

  • Cover type and excess: Opting for a higher voluntary excess or more comprehensive car insurance cover may reduce your premium.

  • Choice of insurer: Finding the right insurer can be the key to keeping your insurance costs down. Make sure to shop around and compare car insurance quotes to find the best deals for your personal circumstances.

Final thoughts

There’s no getting around the fact that three penalty points will bump up your premium. However, shop around and take control of the factors you can, and you’ll still be able to find a great deal on your car insurance.

*51% of consumers could save £518.14 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2025 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.

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