The Department of Motor Vehicles assigns Demerit Points when you commit a traffic violation. From the DMV Website: "Different violations carry different point assignments, depending on the seriousness of the offense. For example, you will receive three demerit points if you make an improper U-turn. However, you will receive six demerit points if you speed 20 miles per hour or more above the posted speed limit. Demerit points remain valid two years from the date you commit an offense." 

How about letting drivers purchase a set number of Demerit Points from the DMV for less serious offenses on an annual basis. Three demerits for an improper u-turn that stays on your record for two years is a little excessive. Many insurance companies are unfairly penalizing drivers with higher rates for just acquiring any demerits at all. Citizens benefit from the ability to reduce or eliminate demerits and Government has a new revenue stream.