How are Your Insurance Points?

Most people are familiar with points that go on your driving record. These points reflect things like being involved in auto accidents. However, not everyone understands that Michigan auto insurance companies also assign eligibility points. If you have too many points, you can legally be denied insurance coverage. Following is a brief guide to help you understand these points.

Points, Points, and (oh yeah) Points!

The maximum number of eligibility points you can have without becoming ineligible for auto insuranc in Michigan is 7 within 3 years. The most common way that people get these points is by being cited for driving over the posted speed limit. The further over the limit you were driving, the more points you will be assigned. They are assigned as follows :

Driving more than 15 miles per hour over the posted speed limit is considered reckless driving. You can be assigned 4 points for each citation you've been issued where you were driving more than 15 miles over the speed limit.
If you were cited for driving between 11 and 15 miles over the speed limit, you can expect to receive 3 eligibility points.
If you're caught driving less than 15 miles over the speed limit on a freeway, and that freeway previously had a 70 mile an hour speed limit, you will only be given two points. This is to account for the transition as the speed limits are lowered.
Any other moving violations will typically count for two points.
The first time that you're involved in an accident in which you are assigned more than 50 percent of the blame, you will receive 3 points.
After receiving your first 3 points for being involved in an accident in which you're more than 50 percent at fault, if you are involved in another accident where you receive more than 50 percent of the blame, you'll receive 4 points.

Can I Be Denied Insurance Coverage?

Remember that you'll only be denied coverage if you've received more than 7 points in less than 3 years. However, this also means that if you were to be involved in an accident and are assigned more than 50 percent of the blame, and at the same time were given a citation for reckless driving, you could amass 7 points during that one accident. Even if you didn't lose your license as a result of your accident, you could be denied insurance coverage. To avoid this situation, all you need to do is to be sure to drive carefully and obey the traffic and speed laws.

Advice & Planning

You should speak with your insurance representative prior to making any changes to your policy. Our intention is to give Michigan residents an easy way to see if they are paying to much for their auto insurance policies. You will be contacted by insurance professionals to discuss your quote further if you'd like, it is a good idea to go over your specific, personal situation with them prior to making any decisions.