What You Should Know About North Carolina Insurance Points

An out of state speeding ticket or other traffic violation will make your insurance premium jump, but do you know how? There is actually a formula that dictates how moving violations increase your rate. The numbers are a little frightening, and may provide you with enough reason to fight your most recent ticket. The Points from a South Carolina Traffic Ticket Transfer to your North Carolina License and Insurance!

How It Works

When you are issued a ticket, there are two types of points that are typically assigned: license points and insurance points. The license points play a role in how the Department of Motor Vehicles views you as a valid driver; collect enough points and they can strip you of your driving privileges.

The insurance points are how your coverage provider views you as a risk, which is why getting a ticket makes your rate go up. Essentially, even minor violations signal to an insurance company that you may pose a threat – and therefore, a potential cost – behind the wheel.

Assigning Points

 The North Carolina Department of Insurance has a grid that determines which infractions receive which number of points and how those points will cause your premium to rise. Those points will remain on your record with the provider for a three-year period preceding the date that you applied for the policy or renewed it. The NCDOI uses the following guide to assign points to your record:

• 1 point (30 percent spike in premium): Given to drivers speeding 10 miles an hour or less over the limit if the limit is 55mph; given to drivers when they are at fault for certain low-level accidents; given for a variety of other minor moving violations.
• 2 points (45 percent spike): Given for illegal passing, driving on the wrong side of the road, following too closely and at-fault accidents or speeding instances at a certain level.
• 3 points (60 percent spike): Given for an at-fault accident that results in death or serious injury and/or property damage.
• 4 points (80 percent spike): Given for hit-and-runs with property damage only, reckless driving, certain speeding infractions and underage intoxicated drivers.
• 8 points (195 percent spike): Given for aggressive driving or driving with a suspended license.
• 10 points (260 percent spike): Given for highway racing or speeding to evade an arrest
• 12 points (340 percent spike): Given for a DUI, a hit-and-run resulting in injury or death and traffic charges related to manslaughter and negligent homicide.

There are some exemptions, but the above guidelines paint a pretty clear picture about how your seemingly small traffic ticket can cost you a large amount of money. Allow our team at Nosal & Jeter, LLP to help you fight your ticket to keep your driving record clean and insurance premium low.