Many states place "points" on your driver's license to indicate traffic accidents and other violations. These insurance points reflect any moving violations you may have committed during the course of the calendar year.

Points can have a negative impact on your driver's record in two ways.

* First, any state participating in the points system has a maximum number of points allowed before a driver loses his or her privilege to drive.
* Secondly, points usually result in a large increase in your car insurance premium costs.

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