Auto Insurance Points Explained
Serge Semirog
In this exciting Newsletter, we will take a look at the North Carolina Department of Insurance (NCDOI)'s Safe Driver Incentive Plan. The goal of this program is to "give drivers a financial incentive to practice safe driving habits." In reality, the NCDOI is punishing bad drivers and putting it into strict monetary terms that anyone can understand.
This point system should not be confused with the Department of Motor Vehicle (DMV)'s point system (found on page 29 of the NCDMV Driver's Handbook, the accumulation of which can result in a license suspension. The Safe Driver Incentive Plan specifically deals with insurance rates and convictions of certain offenses can increase your insurance by 30% or even up to 340%. You can see a striking example in an article we published in June of 2013; the program has not changed much since then.
When you go to apply for coverage or to renew your insurance policy, the company takes into consideration the past three (3) years, or the "Experience Period."
For a detailed breakdown of the point system, please see below:
