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Quick answer: The North Carolina Safe Driver Incentive Plan (SDIP) is a state-set system that adds insurance points for at-fault accidents and moving violations, then adds a set surcharge percentage to your premium based on the points. One point means a 40% increase; an impaired-driving conviction means 340%. Surcharges generally last three policy years, or five for many serious convictions.
What we see at ALLCHOICE
Every few weeks, a driver calls us after a renewal that went up more than they expected. Often they had one speeding ticket or one minor fender-bender, and they assumed it would not matter much.
The surprise usually is not the ticket. It is that insurance points are scored separately from license points, and they follow their own schedule. When that call comes in, a Risk Advisor reviews the driving record and policy details, identifies which incident likely caused the points, checks whether an exemption may apply, and compares the same driver across carriers.
Got a ticket or an accident on your record and a renewal on the way? A Risk Advisor can explain the points on your policy and compare options across carriers.
How does the NC Safe Driver Incentive Plan work?
Each at-fault accident or moving violation conviction in your experience period adds 1 to 12 points, and each point level carries a fixed surcharge percentage. The percentages are not multiples: one point is 40%, and two points is 55%. The North Carolina Department of Insurance (NCDOI) publishes the point schedule.
The experience period is three years. For convictions carrying four or more points on or after July 1, 2025 (except the two excessive-speeding violations), it is five years, and it cannot reach back before that date.
Carriers apply the NC Rate Bureau’s SDIP rule, so the same offense carries the same points at every company.
How many points does each ticket or accident add?
A ticket or accident adds between 1 and 12 points, which means a surcharge of 40% to 340%. Property damage means total damage to all property, including your own vehicle. This table follows the NCDOI’s SDIP page.
| Points | Examples | Premium increase |
|---|---|---|
| 1 | Other moving violations; speeding 10 mph or less over in a zone under 55 mph; an at-fault accident with $2,300 or less in total property damage | 40% |
| 2 | Illegal passing; following too closely; driving on the wrong side of the road; speeding more than 10 mph over (above 55 and under 76 mph); speeding 10 mph or less over in a 55+ mph zone; an at-fault accident with total property damage over $2,300 but under $3,850 | 55% |
| 3 | An at-fault accident with total property damage of $3,850 or more, or with a death or total bodily-injury costs over $1,800 | 70% |
| 4 | Reckless driving; passing a stopped school bus; excessive speeding (over 75 mph where the limit is under 70, or over 80 mph where the limit is 70 or higher); hit-and-run with property damage only; driving after drinking or drugs while under 21 | 90% |
| 8 | Driving while your license is revoked or suspended; aggressive driving | 200% |
| 10 | Highway racing; speeding to elude arrest | 260% |
| 12 | Driving while impaired; manslaughter or negligent homicide; hit-and-run with injury or death | 340% |
Download the full NC insurance points guide (PDF) to keep or share.
How are NC insurance points different from driver license points?
They are two separate systems. Driver license points come from the NCDMV and can lead to a suspension, while insurance points come from the SDIP and set your premium surcharge.
The NCDMV says a license may be suspended at 12 points within three years, and that “insurance companies use a different point system to determine insurance rates.” A ticket can affect both, so a driver can keep a license and still see a surcharge.
How long do insurance points affect my premium?
Most points affect your premium for three policy years. Some serious convictions now last five.
Under the changes effective July 1, 2025, the surcharge period depends on the offense:
- Three years: at-fault accidents, convictions carrying fewer than four points, the two excessive-speeding violations (over 75 mph where the limit is under 70, and over 80 mph where the limit is 70 or higher), and any conviction before July 1, 2025.
- Five years: convictions carrying four or more points on or after July 1, 2025, such as reckless driving or a DWI.
The five-year period cannot reach back before July 1, 2025, according to the NC Rate Bureau’s circular on the SDIP revisions.
When don’t points apply?
Several exceptions can keep a small incident from raising your rate. The NCDOI lists these:
- Minor accidents. No points if the accident was property damage only, $2,300 or less, with no related moving violation, and no licensed driver in your household had a conviction or at-fault accident in the experience period. Your insurer may require six consecutive months of coverage with it.
- Minor speeding. Going 10 mph or less over the limit is exempt if it was not in a school zone and the same driver has no other moving violation conviction in the lookback period.
- Prayer for judgment continued (PJC). A PJC on a moving violation carries no points or surcharge unless you or a licensed driver in your household has another PJC in the lookback period.
- Diagnostic-only medical costs. Bodily injury points do not apply if the costs were solely for diagnostic purposes, with proof.
For the speeding and PJC exemptions, the lookback period is five years if the other violation or PJC happened on or after July 1, 2025, and three years if it happened before.
The Rate Bureau’s rule also lists accidents that carry no points, such as one involving a lawfully parked vehicle, according to its circular. Whether an exemption fits your situation is worth a conversation with your Risk Advisor.
What this means in North Carolina
The SDIP applies statewide, so a driver in Asheville, Greensboro or Wilmington is scored the same way.
The same July 1, 2025 NCDOI update also raised minimum liability limits to $50,000 per person, $100,000 per accident and $50,000 property damage on new and renewed policies.
As an independent agency, we compare auto coverage across multiple carriers. Because the SDIP rule sets the points, carriers differ mainly on base rates, discounts and underwriting.
People also ask
An impaired-driving conviction is 12 points, which means a 340% surcharge. For convictions on or after July 1, 2025, that surcharge lasts five policy years.
Usually. An at-fault accident adds 1 to 3 points depending on the damage and injuries. The Rate Bureau’s rule lists situations with no points, including a lawfully parked vehicle, an animal strike, and flying gravel or falling objects.
It can. Speeding 10 mph or less over the limit is one point in a zone under 55 mph and two points in a 55+ mph zone. It can be waived if it was not in a school zone and the same driver has no other moving violation conviction in the lookback period.
Generally, yes. The experience period is measured back from the date you apply for coverage or the renewal is prepared, so a new insurer can apply points from incidents in that period. Base rates and discounts differ, so the price can still change.
Each separate incident in the experience period is scored on its own. An accident and a related ticket from the same event count only for whichever carries more points, according to the Rate Bureau’s rule. Ask your Risk Advisor to walk through how your record is rated.
Final verdict
The Safe Driver Incentive Plan is a points schedule, and a single incident can change your premium for years. Know which incident created your points and when they drop off. If a ticket or accident is generating points, ask your Risk Advisor whether an exemption should have applied.
Compare auto insurance quotes from multiple carriers
Already a client? Visit the Member Center or call your Risk Advisor to review the points on your policy.
Related: Auto insurance in North Carolina · Uninsured vs. underinsured motorist coverage in NC
Sources
- Safe Driver Incentive Plan, North Carolina Department of Insurance
- Changes to the Rating of Automobile Insurance Policies, Effective July 1, 2025, NCDOI
- Circular A-25-4, Rule 5 SDIP Revisions, NC Rate Bureau
- License Suspension, NC Division of Motor Vehicles
Coverage depends on your policy, carrier and situation. This article is general information, not a coverage decision — talk to your Risk Advisor about your policy.