Points

In New Jersey there are two different types of points associated with a conviction for certain motor vehicle moving violations. The Motor Vehicle Commission (MVC) will assign penalty points to the driver’s license, and the insurance industry will assign insurance eligibility points to the driver’s insurance record. The nature of the offense dictates the number of points assigned by the MVC, and the insurance industry assigns points in the same way, with the number increasing with the severity of the violation. Insurance eligibility points will also be assigned for a license suspension. The two types of points carry different consequences. The MVC’s penalty points might result in the assessment of a surcharge against the driver, which will trigger a license suspension if it is not paid; or they may cause the suspension of the driver’s license if the MVC determines that the number of accumulated points warrants it. See: License Suspension. On the other hand, insurance companies use insurance eligibility points to set the cost of the driver’s automobile insurance, with the cost increasing with the number of accumulated insurance eligibility points; and if 7 or more points accumulate over three years the driver will be unable to buy insurance in the open market. That driver must purchase insurance through the assigned risk pool, or the New Jersey Personal Automobile Insurance Plan, at rates substantially higher than in the open market.