How will insurance points affect my auto insurance rates?

Percentage Icon With a Red Arrow to Show Rising Insurance CostsIn North Carolina, insurance points can dramatically affect the cost of your auto insurance. Even a simple ticket that only adds one insurance point to your record can result in a 30 percent increase in your insurance costs. Because of this, you should not just pay a citation fine without first obtaining the advice of an experienced traffic ticket attorney in Charlotte to determine if it is in your best interest to fight the ticket.

What Are Insurance Points?

There are two types of points that you can be assessed if you are found guilty of violating a traffic law: points on your driving record and insurance points. The North Carolina legislature created the Safe Driver Incentive Plan to encourage safe driving in our state. It rewards motorists who have a good driving record by allowing insurance companies to charge them less in insurance premiums. However, this law also allows insurance companies to charge significantly higher rates if a driver has insurance points due to traffic violations.

How Much Could Your Insurance Rates Increase Due to Insurance Points?

The North Carolina Department of Insurance sets the insurance points per accident and traffic citation and how much insurance rates can be increased when insurance points are assessed. An insurance company is allowed to consider how many points have interest over a three-year period when setting your premium cost. Here is how these points could affect this:

  • One point. You can be assessed one point for moving violations that are not assessed higher points, for speeding 10 mph or less over the speed limit under 55 mph, or an accident causing personal injuries of $1,800 or less or property damage of $2,300 or less. Your insurance rates could increase as much as 30 percent.
  • Two points. A citation for illegal passing, following too closely, accidents resulting in property damage between $2,300 and $3,850, and speeding 10 mph or less over the speed limit of 55 mph or higher are some of the violations that can result in two insurance points. This can cause your insurance rates to increase by 45 percent.
  • Three points. Three points will be assessed if you cause a crash resulting in personal injuries of more than $1,800 or property damage totaling $3,850 or more. Insurance rates can go up by 60 percent.
  • Four points. Reckless driving, a hit and run collision with only property damage, passing a stopped school bus, and speeding in excess of 75 mph where the posted speed limit is 70 mph or less can add four points to your insurance record. Your insurance company can increase your insurance premiums by 80 percent.
  • Eight points. Aggressive driving and driving when your driver’s license is suspended or revoked can add eight insurance points to your record and increase your insurance costs by 195 percent.
  • Ten points. Street racing and speeding to elude arrest are serious violations that can cause 10 points to be added to your record. Your insurance costs can also be increased by 260 percent.
  • Twelve points. Manslaughter, negligent homicide, a hit and run accident resulting in bodily injury or death, and DUI are a few of the violations that can result in 12 points on your insurance record and a 340 percent increase in your insurance premiums.

If you or a loved one have been issued a traffic citation in Charlotte, take advantage of our offer of a free consultation to learn how we can help you to fight your traffic ticket and avoid the harsh consequences you face—including increased insurance costs. To schedule your appointment, call our office today.