Three points on licence could increase car insurance by 5 per cent

If you have three points on your driving licence, as a result of speeding or another offence, you can expect to pay 5 per cent more for your car insurance premium, according to new research.

The Institute of Advanced Motorists (IAM) and MoneySuperMarket conducted the study, looking into the price difference of insurance between clean licences and licences with penalty points.

Points accumulation costs around £132 million to motorists in the UK, it was revealed. Motorists with as many as 10 points on their licence can expect their premium to rise as much as 80 per cent compared to if they had a clean record.

If you have three points on your licence, their figures indicate your insurance could be 5.1 per cent higher, on average, than if you have no points. For those with four to six points, the average rise is 25.8 per cent.

“If people don’t understand the safety dangers of the offence they have committed which has earned them the penalty points, they should certainly understand the damage it will do to their bank balances,” said Sarah Sillars, of the IAM.

“And someone with multiple points and fines is paying through the nose for car insurance. Just think what other things they could use that money for. Driving safely could put thousands back into our pocket.”

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