Just about every state has a driver’s license point system in place, which puts the driver at risk of suspension or revocation with severe or repeated traffic offenses. North Carolina also utilizes a separate point system known as the Safe Driver Incentive Plan or SDIP. Instead of impacting your license, this program directly affects your auto insurance rates. Here's how this process works. 

What Is It?

Created in 1957, the SDIP is designed to motivate drivers across the state to avoid moving violations, like speeding tickets and at-fault accidents. As with North Carolina's DMV program, drivers receive points based on the severity of a traffic violation. However, SDIP points are directly related to auto insurance rate increases so that the more you receive, the higher your premiums become. 

How Does It Impact Rates?

Instead of exact dollar amounts, SDIP points are associated with percentages. For instance, a conviction of a one-point violation results in a 30% insurance rate increase. The percentage total increases with the first four points and again at eight, ten, and 12 points. At the maximum level of 12 points, the rate increases to 340%. 

What Are the Exemptions?

There are certain instances in which drivers can avoid SDIP points. One of the approved situations involve an injury-free accident with property damage totaling $2,300 or less, but there can't be any connected moving violations. Additionally, all other drivers in the household must be free of new point violations during the preceding three years, which is known as the experience period.

You can also bypass raised insurance rates with minor speeding convictions in certain situations. The conviction must be under 11 miles per hour over the limit and can't occur in a school zone. However, the driver can't have any other points within the experience period. 

If you're on the hunt for a dependable and cost-effective auto insurance policy, contact High Rock Insurance Agency in Lexington, NC, to learn more about your options. The independent agency works closely with residents across Davidson County, NC, to find the right protection for their needs. From auto to life and motorcycle, the agents are committed to providing a personalized experience and are available for around-the-clock for support. Request your insurance quote today by visiting their website or calling (336) 236-9022.