Auto Insurance Eligibility & License Points in New Jersey
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There are two types of points that go on your license and driving record in the state of New Jersey after a traffic violation:
- License points from the state's MVC (Motor Vehicle Commission) can lead to surcharges and suspensions if you get too many.
- "Eligibility points" from the state's department of insurance allow insurance companies to deny you coverage, meaning you have to get a policy through a state program for high-risk drivers.
In many, but not all, cases, the number of points assigned for a given violation is the same for both types. Insurance companies will usually raise your rates after a driving infraction, but those higher prices are not necessarily tied to either type of point.
How New Jersey driver's license points work
The New Jersey MVC (equivalent to DMV in other states) assigns points to your license after a range of traffic violations. If you have six or more points in three years, you will have to pay a fee to the MVC, and if you have 12 or more points, your license will be suspended.
Traffic violation points in NJ
Offense | Points |
|---|---|
|
Moving against traffic on the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway | 2 |
|
Improper passing on the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway | 4 |
|
Unlawful use of median strip on the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway | 2 |
|
Operating constructor vehicle in excess of 45 mph | 3 |
|
Operating motorized bicycle on a restricted highway | 2 |
|
More than one person on a motorized bike | 2 |
|
Failure to yield to pedestrian in crosswalk | 2 |
For each year that you have six or more points, you will pay a $150 surcharge, plus $25 per year for each point over six. The points for a violation stay on your license for three years. You can find out how many points you have on your license by requesting your driving history from the New Jersey Motor Vehicle Commission.
License points can only be earned by committing violations behind the wheel, meaning you will not earn any points for driving without insurance. However, driving without insurance or with a suspended license will lead to a $250-per-year surcharge and other punishments. A DUI also will not lead to points on your license, but DUIs do come with charges of $1,000 per year for each of the first two and $1,500 per year after that. Both violations typically involve other fines and an automatic suspension of your license.
New Jersey speeding ticket points
A speeding ticket in New Jersey will add only two points to your license if you are going less than 15 miles per hour over the speed limit. If you are going between 15 and 29 mph over, the penalty is four points, while more than 30 over is five points.
This means that if you get one speeding ticket for driving less than 15 mph over and one for driving more than 15 miles per hour over the speed limit, you will be assured of paying at least $150 per year.
How New Jersey eligibility points work
New Jersey's department of insurance also assigns points, called eligibility points, to your record after various violations. Those points determine if insurance companies in the state can deny you coverage.
If you accrue more than six eligibility points, you can no longer shop on what is called the voluntary market, where insurers choose who they cover or don't cover based on risk. High-risk drivers can't shop on the voluntary market; instead, they must use the high-risk PAIP program in New Jersey.
Eligibility points for major violations
Violation | Number of points |
|---|---|
| Driving under the influence of alcohol or drugs | 9 |
| Refusing to submit to a chemical test | 9 |
| Vehicular homicide | 9 |
| Driving without insurance | 9 |
| Lying to obtain a license, counterfeit plates, illegally altering a license or registration | 5 |
| Racing on the highway | 5 |
| Reckless driving | 5 |
*Points for at-fault accidents only accrue once the insurer has made payments of at least $1,000.
Major violations, including DUI and leaving the scene of an accident, will effectively put anyone into a high-risk category.
Inexperienced drivers automatically start with three eligibility points, often known as inexperience points. One point drops off for every year of driving experience. Because new drivers start off with an initial three points, they're at greater risk of being disqualified from the voluntary market.
Because newer drivers start out with three points, they might join the high-risk pool after just one conviction of reckless driving, excessive speeding or even passing a school bus.
Minor violations, also known as Schedule 2 violations, will also put eligibility points on your record. The point values for those violations are the same as for license points.
The state helps you out a little here. If you cause a car accident but you haven't earned eligibility points in the past three years, any violations worth two or three points on the Schedule 2 list won't count against you. Instead, the insurer will only consider violations worth at least five points for your eligibility.
How do points impact your car insurance?
Points on your license and New Jersey eligibility points won't necessarily directly impact the rates you pay on your insurance, but the violations you commit almost assuredly will. Some companies may include points as part of their calculations, but all use your driving history and usually charge more if you have a blemish on your record.
That said, if you get too many eligibility points, you will likely have to purchase insurance through a high-risk company, which means much higher rates in most cases.
Sources
Information for this article was collected from the New Jersey MVC points schedule, the MVC surcharge brochure as well as the New Jersey administrative code.