In North Carolina, receiving a traffic ticket can significantly impact your car insurance rates. Even minor infractions can trigger premium increases, as insurance companies use these violations to assess your level of risk.
The severity of the ticket influences the rate increase, with speeding and reckless driving carrying higher penalties. North Carolina drivers, on average, see a 30-50% premium hike following serious violations.
The North Carolina Safe Driver Incentive Plan (SDIP)
North Carolina employs the Safe Driver Incentive Plan (SDIP), a points system used by the DMV and insurance companies. Points are assigned based on the type of violation, with more points resulting in steeper insurance increases.
For instance, a speeding ticket for driving 10 miles over the limit adds two points, while reckless driving adds four. Accumulating points can make your insurance unaffordable or even lead to policy cancellation.
Impact of specific violations on rates
Each violation affects rates differently. Here are some examples:
- Speeding: Increases rates by 20-30%, depending on the speed over the limit.
- Reckless Driving: Results in a 50% or more increase.
- Driving Without Insurance: This may lead to policy termination and difficulty securing future coverage.
How to mitigate the impact on your insurance
To avoid long-term consequences, drivers should consider appealing or reducing traffic tickets in court. Taking a driving course may also help dismiss certain violations or reduce points. Additionally, some insurers offer accident forgiveness programs or discounts for good driving behavior over time.
Traffic tickets in North Carolina can dramatically affect your insurance rates. Knowing how the SDIP system works and understanding the impact of specific violations can help drivers make informed decisions, potentially saving money on insurance in the long run.