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:
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.
*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%