There are two significant point systems related to driving and auto insurance in North Carolina. There are insurance points and DMV points. This guide will clarify what incidents will cause you to receive zero North Carolina insurance points, and also how receiving insurance points will increase your auto insurance.
North Carolina insurance points, or SDIP points (Safe Driver Incentive Plan points), are points recognized by the North Carolina Department of Insurance when deciding how much your auto insurance company can charge you for auto insurance. The North Carolina Safe Driver Incentive Plan (the “SDIP") was set up in 1957, and it is designed to financially motivate you to drive safely. Under the SDIP, drivers that accumulate insurance points will pay between 25% and 340% more for auto insurance.
No Insurance points will be charged for (i) accidents resulting in no injuries and property damage less than $1,800 (if there is no conviction for a related moving violation, and the other driver’s in the household have a clean driving record for the past 3 years), (ii) one conviction every 3 years of speeding 10 mph or less (if not in a school zone), and (iii) one Prayer for Judgment Continued every three years (provided no other driver in your household or on your auto insurance policy has used a Prayer for Judgment Continued in the preceding 3 years). An insurance point will continue to affect your insurance premiums until the occurrence that caused the insurance point is more than 3 years old.
The table below shows how insurance points will impact your auto insurance premiums.
Insurance Points Assessed
Percentage of Rate Increase