How are rates determined? What is a safe driver incentive plan?
Our legislature enacted the Safe Driver Incentive Plan (SDIP) which determines the costs of your auto coverages. Under this plan, Drivers who accumulate points for moving traffic violations or cause auto accidents are charged higher premiums. The SDIP uses a point system where points are given for certain violations or at-fault accidents. The points assessed under this plan range from 1 point (for example, 1 point for an at-fault accident causing less than $1,800 in damage or injury or a traffic conviction for speeding 10 miles per hour or less in excess of 55 mph speed limit) to 12 points (for example, a traffic conviction for DWI or prearranged racing or being at-fault in an accident where someone was killed by negligent driving). Obviously, the more points you have, the higher your auto insurance premium will be.
For a complete review of the SDIP point system you may access the SDIP by going to the NC Department of Insurance website at http://www.ncdoi.com/_publications/consumer%20guide%20to%20automobile%20insurance_cau1.pdf.