The ABC's of Traffic Law in NC - Insurance Points

Insurance points raise your insurance rates based on points assessed per violation. North Carolina motorists are assessed two different types of points: insurance points and license points. Insurance points are what the majority of our clients are concerned with, i.e. "what will this do to my insurance rate?"

Insurance rates are determined by five factors:

1. The basic North Carolina automobile insurance rates set out in the North Carolina Personal Automobile Manual.
2. Insurance points accumulated during the past three years for moving violations and accidents.
3. Whether their insurance company has transferred their coverage to the reinsurance facility.
4. What region of North Carolina they live in.
5. Whether they have three years or less driving experience, regardless of age.

An excellent, basic resource to offer your clients seeking a greater understanding of automobile insurance policies and practices in North Carolina can be found at the NCDOI website. See Consumer Guide to Automobile Insurance under Auto Insurance Related Publications listing.

North Carolina drivers will be assessed insurance points if convicted of a moving violation or if they have an at fault accident during a three year period. This three year period is determined to be a three year period immediately preceding the date of application, or the date of preparation of renewal of the insurance policy.

Each household may receive one PJC (A Prayer for Judgment Continued) and one conviction for speeding 10 mph or less above the speed limit every three years without it counting as a conviction. A second PJC within three years will raise the insurance based on both the original conviction and the new conviction, as would a second conviction of speeding 10 mph or less (or more) over the speed limit. This rate will last for three years from the date of the original conviction and then both convictions will cease to effect the insurance rate. The 10 mph or less waiver does not apply to school zones.

Insurance Points

12 Points:

• Manslaughter (or negligent homicide) resulting from the operation of a motor vehicle.
• Prearranged highway racing or knowingly lending a motor vehicle to be used in a prearranged race.
• Failure to stop and render aid when involved in an accident resulting in bodily injury or death.
• Impaired driving, including driving a vehicle while under the influence of an impaired substance; driving a vehicle with an alcohol concentration of 0.08% or more; and driving a commercial vehicle with an alcohol concentration of 0.04% or more.
• Transportation of intoxicating liquors for purpose of sale.

10 Points:

• Highway racing (not prearranged) or knowingly lending a motor vehicle to be used in the race.
• Speeding to elude.

8 Points:

• Operating a motor vehicle during a period of revocation or suspension of either the driver's license or vehicle registration.

4 Points:

• Failure to stop and report when involved in a motor vehicle accident resulting in property damage only.
• Reckless driving
• Passing a stopped school bus
• Speeding in excess of 75 mph when posted limit is less than 70 mph
• Speeding in excess of 80 mph when limit is 70 mph or greater
• Driving by a person under 21 after consuming alcohol or drugs

3 Points:

• Illegal passing
• Speeding more than 10 mph over the limit, if total speed was in excess of 55 mph but less than 76 mph
• Speeding 10 miles or less in excess of limit in speed zone of 55 or greater*
• Following too closely
• Driving on the wrong side of the road
• Each at-fault accident that results in total damage to all property which is in excess of $1,800 or less*

*Points are not assigned for those violations unless the same driver has been convicted of at least one other moving violation during the experience period (the last three years).

For accidents assessing only one point ($1,000 or less), no insurance surcharge will be assessed if: (1) the operator was not convicted of a moving traffic violation in connection with accident; (2) no licensed driver in the owner's household has a conviction for a moving traffic violation or other at fault accident during the three year period immediately proceeding the date of application or the date of preparations of renewal of the policy; and, (3) there was no personal injury. If your client is convicted of a moving violation in connection with a traffic accident, they will only be assessed for the higher of the points, but not both.

Insurance Points Surcharge

1 Point = 25%
2 Points = 45%
3 Points = 65%
4 Points = 90%
5 Points = 120%
6 Points = 150%
7 Points = 180%
8 Points = 220%
9 Points = 260%
10 Points = 300%
11 Points = 350%
12 Points = 400%