How much will that ticket cost you?

So one of our most common questions, is how ticket/accident will affect your rate.  Below is the stipulations set forth by the state of NC.  They're not all inclusive nor do they apply specifically to any carrier, because carriers will charge different insurance points based on the violation itself.  But it's a great rule of thumb!


Traffic and Insurance Points

Whenever a North Carolina motorist receives a traffic ticket in North Carolina they can be assessed two different types of points, driver's license and insurance points.

Driver's License Points

The North Carolina Division of Motor Vehicles maintains a record of convictions and automobile accidents (for those in which the police are called) for every person licensed or required to be licensed.

The NC DMV will assign points for convictions of North Carolina's Motor Vehicle Laws in accordance with the schedule below. If you accumulate 12 or more points within a three-year period, the NC DMV may suspend your license. The first suspension of your driver's license under the point system shall be for no more then 60 days. The second suspension shall not exceed 6 months and any subsequent suspension shall not exceed one year. If you are in danger of losing your license because you have accumulated too many driver's license points, the NC DMV may allow you to attend the Driver Improvement Clinic and have three points removed from your record. This, however, does not remove the points from your insurance. You can only take this Driver Improvement Course once every 5 years.

Once your license has been suspended, you can face a second suspension of your license if you accumulate 8 or more points during the three-year time period immediately following the reinstatement of your license. If you are convicted of two or more traffic offenses which were committed on a single occasion, then you will only be assessed driver's license points for the offense having the greater point value.

20-16. Authority of Division to suspend licenseThis link will open in a new window
This link will open in a new window03-04-2005

Schedule of Driver's License Points

• 5 Points
  • Passing a stopped school bus.
• 4 Points
  • Reckless driving (Misdemeanor)
  • Hit and run, property damage only (Misdemeanor) (If personal injury = Felony)
  • Following too closely
  • Driving on wrong side of road
  • Illegal passing
• 3 Points
  • Running through a stop sign
  • Speeding in excess of 55 miles per hour
  • Failing to yield right-of-way
  • Running through red light
  • No driver's license or license expired more than one year
  • Failure to stop for siren
  • Driving through safety zone
  • No liability insurance
  • Failure to report accident where such report is required
  • Speeding in a school zone in excess of the posted school zone speed limit
• 2 Points
  • All other moving violations
  • Failure to properly restrain a child in a restraint or seat belt
• 1 Point
  • Littering (G.S. 414-399) involving use of motor vehicle
• 0 Points
  • Seat Beat Violation
  • Improper Equipment/plates/registration/muffler/inspection sticker display

Points are only assessed for convictions of violations which take place within the State of North Carolina and if you have a North Carolina Driver's License or if that state transfers the ticket to the NC DMV under a compact. If you have an out-of-state driver's license, the NC DMV will only maintain a record concerning an out of state driver if a ticket is issued against that driver in North Carolina. If your state of licensure is a reciprocal state with North Carolina under the compact, then North Carolina may notify your state of licensure of the conviction. Your license will then be dealt with in accordance with your state's law. However, the NC DMV can suspend the driver's license of any North Carolina operator if they are convicted of an offense in another state, which if committed in North Carolina would be grounds for suspension or revocation of their license. N.C.G.S. 20-16(7)

If you have an out of state license and commit an offense which is suspendible or revocable in North Carolina, the NC DMV cannot suspend you driver's license but can suspend or revoke your privilege to drive in North Carolina. They will also notify your licensee state which may take additional action.

If you receive a notice from the NC DMV concerning suspending or revoking your driving privilege in North Carolina, you are entitled to a hearing if you follow the guidelines and procedures set out in the notice. Some offenses are suspendible without an opportunity for a DMV hearing. If that is the case, there is the possibility of obtaining a limited driving privilege through the court system.

• 20-16.1. Mandatory suspension of driver's license upon conviction of excessive speeding; limited driving permits for first offendersThis link will open in a new window
  03-04-2005

Insurance Points:

The automobile liability insurance rates which are paid by licensed drivers in North Carolina are determined by five factors:

1. The basic North Carolina automobile insurance rates which are set out in the North Carolina Personal Automobile Manual. Also see the NC Rate Bureau.
2. Insurance points which they have 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 that have three years or less driving experience.

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 experience period. This three-year period is determined to be the three-year period immediately preceding the date of application, or the date of preparation of renewal of your insurance policy. A conviction includes pleas of guilty, no contest, suspended sentences, forfeiture of bail and the payment of court costs and a fine. Each household may receive one Prayer for Judgment Continued (PJC) every three years without it counting as a conviction. Prayer for Judgment Continued upon the payment of costs, without more, does not constitute the entry of judgment. N.C.G.S. 15A- 101 ( 4a) 03-04-2005

• 15A-101. Definitions
  This link will open in a new window03-04-2005

Table of Insurance Points

• 12 Points
  • Manslaughter (or negligent homicide) resulting from the operation of a motor vehicle. (felony)
  • Prearranged highway racing or knowingly lending a motor vehicle to be used in a prearranged race. (Felony)
  • Failure to stop and render aid when involved in an accident resulting in bodily injury or death (hit-and-run driving) (Felony)
  • Impaired driving, including driving a vehicle while under the influence of an impairing 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 (a revocation pursuant to G.S. ¤20-16.5 is not a conviction). (Misdemeanor)
  • Transportation of intoxicating liquors for the purpose of sale. (Misdemeanor)
• 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. (Misdemeanor)
• 4 Points
  • Failure to stop and report when involved in a motor vehicle accident resulting in property damage only (hit-and-run). (Misdemeanor)
  • Reckless driving. (Misdemeanor)
  • Passing a stopped school bus.
  • Speeding in excess of 75 miles per hour (mph) when posted limit is less that 70 mph. (Misdemeanor)
  • 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 03-04-2005
  • Each at-fault accident that results in bodily injury (in excess of $ 1800.00) or death or total property damage (including the insured's property) of $ 3000.00 or more
• 2 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 ,800.00 but less than $ 3000.00 03-04-02005
• 1 Point
  • Speeding 10 mph or less in excess of a speed limit of less than 55 mph*
  • Any other moving violation.
  • Each at-fault accident that results in total damage of $ 1,800.00 or less* 03-04-2005*Points are not assigned for these violations unless the same driver has been convicted of at least one other moving violation during the experience period (the last three years).
    
    

The number of insurance points a driver receives will determine the surcharge which will be added to their insurance costs. See the surcharge table below:

• 58-36-75. At-fault accidents and certain moving traffic violations under the Safe Driver Incentive Plan
  This link will open in a new window03-04-2005

Insurance Surcharge Table

One - 25%
Two - 45%
Three - 65%
Four - 90%
Five - 120%
Six - 150%
Seven - 180%
Eight - 220%
Nine - 260%
Ten - 300%
Eleven - 350%
Twelve - 400%

For 1 point accidents ($1800.00 or less) there is no surcharge assessed if: 03-04-2005

1. The operator was not convicted of a moving traffic violation in connection with the 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 preparation of renewal of the policy
3. There was no personal injury.

If you receive a citation for a traffic offense in connection with a traffic accident, you may be able to avoid conviction on that charge(s) by obtaining a letter from your insurance company stating that they have assumed financial responsibility for the accident. When presented with such a letter, many District Attorneys will dismiss the charge(s) against you. In the event that you are convicted of a moving violation in connection with a traffic accident you will not be assessed points for both the moving violation and the accident. The higher of the surcharge points will be assigned to you.

The Reinsurance Facility

After points, the second major factor affecting the cost of liability insurance is whether a motor vehicle owner has been transferred (through a process known as "ceding") to the North Carolina Motor Vehicle Reinsurance Facility. The Reinsurance Facility is a nonprofit legal entity consisting of all insurers engaged in writing motor vehicle insurance in North Carolina. Its purpose is to provide liability insurance for drivers or vehicle owners whom companies do not wish to insure as part of their regular voluntary business. In brief, it is a method of transferring the risk of loss from the individual insurance company to all insurance companies.

North Carolina law makes no provision regarding which individuals are to be ceded to the Reinsurance Facility. The decision belongs entirely to each particular insurance company. If an applicant for motor vehicle liability insurance is, for any reason, considered an undesirable risk by the company, it may cede the applicant to the Reinsurance Facility even though the person has a clean driving record. In other words, it is possible for a person who has never received a traffic citation or had an accident to be ceded to the Reinsurance Facility. Obviously, those with bad driving records are prime candidates, but a company may transfer anyone it considers a bad risk for any reason. Reportedly young drivers, the elderly, and some occupational groups often fall within this category. There is no appeal process, but applicants may seek coverage with another company that would not cede them to the Reinsurance Facility.

Because the Reinsurance Facility has many high-risk drivers, the SDIP provides that it may charge a higher base rate than is allowed in the voluntary market. But insureds ceded to the Reinsurance Facility who are clean risks--meaning, for this purpose, that no one on the policy has any points and no driver on the policy has less than two years' driving experience--pay the same as other policy holders with clean driving records who have not been ceded. However, a driver in the Reinsurance Facility who had insurance points were more than 50 percent higher. And those drivers pay the surcharge for their points on top of that higher rate.

Table 3 shows the base cost for insurance before any surcharge for points is added when the insurance is handled as regular business (that is, not ceded to the Reinsurance Facility). Table 4 shows the comparable base cost for an owner with points whose policy has been ceded to the Reinsurance Facility.

• 58-37-1. Definitions
  This link will open in a new window03-04-2005

Territory

The third factor determining a person's automobile liability insurance costs is where the person lives in North Carolina. The state is divided into nineteen territories, each with its own base rate. The cost of insurance varies considerably from territory to territory. For example, the base cost for $100,000/$300,000 bodily injury coverage for a motor vehicle owner with no points is $170 in Asheville (Territory 11), while the identical coverage in Charlotte (Territory 52) is $311. For a vehicle owner whose policy has been ceded to the Reinsurance Facility (and who has even one point, therefore paying the higher Reinsurance Facility base rate), the cost for the same coverage would be $252 in Asheville and $521 in Charlotte (plus, in each case, the surcharge for the points). Table 5 lists the areas covered in the nineteen territories.

Age and Sex

A fourth factor that can raise an insured's liability insurance cost is inexperience as a driver, which usually correlates closely with age.
The 1975 Session of the North Carolina General Assembly enacted legislation intended to prohibit insurance rates from being based on the ages or sex of the insured. Specifically, G.S. 58-3-25 provides: "No insurer shall . . . base any standard or rating plan for private passenger automobiles or motorcycles, in whole or in part, directly or indirectly, upon the age or sex of the persons insured." But the youngest drivers typically pay higher insurance rates (or have their parents pay the higher rates for them), because the surcharge is added to policies that cover drivers who have fewer than three years' driving experience as a licensed driver. (The surcharge is not added when a member of the household begins driving under a learner's permit; and time spent driving on a learner's permit does not count toward the three years). For most drivers, the surcharge is applied from age sixteen to nineteen, causing its impact to be felt most by young people and those who pay the insurance for young people, but the same rule would be applicable to a fifty year old if that person had no previous driving experience. This Surcharge approximately doubles the cost of liability insurance on the car the inexperienced driver "principally operates".