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It pays to practice safe driving skills in the state of North Carolina, but failure to do so has both financial consequences and day-to-day interruptions. The state utilizes two main point systems that will affect your life: DMV and SDIP points, but the close structural ties of the programs make it challenging for most drivers to apprehend. The team at Zimmerman Insurance Agency understands the confusion many of their High Point, NC, clients experience over the two systems. Below, the insurance broker breaks down the differences and explains their effect on your car insurance rates.

What's the Difference Between DMV & SDIP Points in North Carolina?

DMV

The state's Department of Motor Vehicles, or DMV, uses a point system that reflects a driver's on-the-road history. Every accident or ticket is associated with a certain number of points that remain on your record for three years. Collecting 12 points within a three-year timeframe results in a driving suspension in which your license is revoked for an allotted period of time.

SDIP

The Safe Driver Incentive Plan, or SDIP, is used by the state's Department of Insurance to determine a driver's automobile insurance premium. Unlike the DMV, the SDIP points don't affect your driving ability, but instead, the system focuses on the financial aspect of being a driver. As with license points, insurance points have a life span of three years, so accumulating them has lasting financial consequences. 

How Do Driving Points Affect Your Car Insurance Rates?

car insuranceYour driving license points are primarily for the DMV's usage in North Carolina, so they don't directly impact your car insurance rates. However, DMV points are correlated to your SDIP tally, which does directly impact your car insurance premium. Every point total equates with a specific cost percentage increase, so the more points you rack up, the higher your out-of-pocket expenses.

Safe driving habits will help you avoid accumulating DMV and SDIP points, but if an accident does happen, it's important to have the right team behind you. Zimmerman Insurance Agency is known throughout the Piedmont Triad area for their commitment to their clients. Since 1963, the professional insurance broker has assisted drivers, homeowners, and businesses with finding policies that meet their specific needs. Find affordable and protective car insurance coverage today by requesting a quote at (336) 883-6512 or by visiting them online.

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