North Carolina's Safe Driver Incentive Plan
The state uses the Safe Driver Incentive Plan (SDIP) to make sure good drivers are rewarded with lower North Carolina car insurance rates.
In practice, SDIP works hand-in-hand with your driving record by adding points for violations and certain at-fault car accidents. Each point correlates to a significant increase in premium. Earning just one point, for instance, can lead to a 30 percent increase in your annual NC car insurance rates.
By maintaining a clean driving record with zero SDIP points, you can expect to pay less for North Carolina auto insurance than drivers with a riskier history.
Proof of insurance
Car insurance companies supply North Carolina drivers with insurance ID cards. You can also use Form DL-123, your original liability insurance policy contract, or a valid binder to show proof of your car insurance in North Carolina.
A licensed insurance agent can help you get a DL-123.
Uninsured drivers in North Carolina
A report from the Insurance Research Council estimated that about 9 percent of North Carolina drivers were uninsured in 2012. That was lower than the national average of 12.6 percent.
Uninsured motorist coverage can come in handy after an accident caused by an uninsured driver.
Reinsurance facility for high-risk drivers
North Carolina law mandates that car insurance companies cannot refuse to cover potential customers with the state-required liability limits. If an insurer deems a driver too risky, the company can place the customer into the "reinsurance facility." The goal of this "facility" is to make sure North Carolina drivers have access to car insurance.
Reinsurance facility customers can choose the following coverages up to a maximum limit:
- Bodily injury liability per person: $100,000
- Bodily injury liability per accident: $300,000
- Property damage liability per accident: $50,000
- Medical payments coverage per person: $2,000
- Uninsured motorist coverage per person: $1,000,000