Safe driving is not just about personal safety; it’s also a key factor in managing your car insurance costs. Many drivers are unaware that their driving habits directly influence their insurance premiums. In North Carolina, the Safe Driver Incentive Plan (SDIP) is designed to provide a financial incentive for drivers to maintain safe driving practices. This program assesses points for traffic violations and at-fault accidents, which can then lead to increased insurance rates. Understanding how the SDIP works can empower you to take control of your driving record and potentially lower your car insurance expenses.
The North Carolina SDIP operates on a point system. Points are assigned based on convictions for moving violations and involvement in at-fault accidents. These points are accumulated over an Experience Period, which is the three-year window before you apply for a new insurance policy or when your existing policy is up for renewal. The more SDIP points you accrue, the higher your insurance rate is likely to climb. The table below outlines how different violations and accidents translate into SDIP points and the corresponding percentage increase in your insurance rate.
| SDIP Points | Convictions & At Fault Accidents | % of Rate Increase |
|---|---|---|
| 1 | – All other moving violations. – Speeding 10 mph or less over a speed limit under 55 mph. – At fault auto accident that results in total damage to all property, including the insured’s own, of $2,300 or less. *No Insurance Points will apply for bodily injury if proven that the medical costs were incurred solely for diagnostic purposes. | 40% |
| 2 | – Illegal passing. – Following too closely. – Driving on wrong side of the road. – At fault auto accident that results in total damage to all property, including the insured’s own, in excess of $2,300 but less than $3,850. – Speeding more than 10 mph over the speed limit at a total speed of more than 55 mph and less than 76 mph. – Speeding 10 mph or less over the speed limit in a speed zone of 55 mph or higher. | 55% |
| 3 | – At-fault accident resulting in death or total bodily injury (to all persons) of more than $1,800; OR resulting in total property damage (including damage to insured’s own property) of $3,850 or more. *No Insurance Points will apply for bodily injury if proven that the medical costs were incurred solely for diagnostic purposes. | 70% |
| 4 | – Reckless driving. – Hit-and-run resulting in property damage only. – Passing a stopped school bus. – Speeding in excess of 75 mph when the speed limit is less than 70 mph. – Speeding in excess of 80 mph when the speed limit is 70 mph or higher. – Driving by a person less than age 21 after consuming alcohol or drugs. | 90% |
| 8 | – Driving during revocation or suspension of license or registration. – Aggressive driving. | 200% |
| 10 | – Highway racing or knowingly lending a motor vehicle for highway racing. – Speeding to elude arrest. | 260% |
| 12 | – Manslaughter or negligent homicide. – Prearranged highway racing or knowingly lending a motor vehicle for prearranged highway racing. – Hit-and-run resulting in bodily injury or death. – Driving with a blood-alcohol level of .08 or more. – Driving commercial vehicle with a blood-alcohol level of .04 or more. – Driving while impaired. – Transporting illegal intoxicating liquor for sale. | 340% |
It’s important to note that there are situations where SDIP points may not be charged, even if you are involved in an accident or receive a speeding ticket. These exceptions are designed to ensure fairness and consider minor incidents that may not necessarily indicate unsafe driving habits.
Exceptions to SDIP Points
One key exception involves accidents where specific conditions are met. You will not be charged SDIP points for an accident if all of the following are true:
- It was a property damage only accident.
- The total damage was $2,300 or less.
- No moving violation conviction was associated with the accident.
- No licensed driver in your household has had convictions or at-fault accidents during the Experience Period. (Note that insurance companies might require you to have been insured with them for at least six months to qualify for this exception).
Another significant exception relates to minor speeding violations. You will not receive SDIP points for speeding 10 mph or less over the speed limit if:
- The violation did not occur in a school zone.
- You have no other moving traffic violations within the Experience Period. An isolated Prayer for Judgement Continued (PJC) does not count as a prior conviction for this exception.
Furthermore, North Carolina allows for one Prayer for Judgement Continued (PJC) every three years per household without SDIP points being assessed. However, it’s crucial to understand that a second PJC within that period could lead to points based on the underlying conviction.
Staying Compliant and Saving on Car Insurance
The North Carolina SDIP serves as a clear guide to what constitutes compliant driving in the eyes of insurance providers. By understanding this list of violations and their associated points, drivers can actively work to maintain a clean driving record. Avoiding moving violations and practicing safe driving habits are the most effective ways to prevent SDIP points and keep your car insurance rates as low as possible. Being a compliant driver, in essence, directly translates to financial savings on your car insurance premiums in North Carolina. By prioritizing road safety and adhering to traffic laws, you are not only protecting yourself and others but also taking advantage of the financial incentives built into programs like the SDIP.
