NC Safe Driver Incentive Plan (SDIP)

The Bottom Line

North Carolina has a state-regulated system called the Safe Driver Incentive Plan (SDIP) that controls exactly how much your insurance company can raise your rates after an accident or traffic violation. The most important thing to know: NC law prohibits insurance companies from increasing your rates for accidents that were not your fault. If your rates go up after a not-at-fault accident, you have the right to fight it.

What Is the Safe Driver Incentive Plan (SDIP)?

The Safe Driver Incentive Plan is a system unique to North Carolina that regulates how auto insurance companies can surcharge drivers after at-fault accidents and traffic convictions. Unlike most states, where insurers have broad discretion to raise rates however they see fit, NC mandates a specific point-based system that all insurers must follow.

The SDIP is governed by N.C. Gen. Stat. 58-36-65 and is administered by the NC Rate Bureau under the oversight of the NC Department of Insurance (DOI).

Here is why this matters to you: the SDIP puts limits on what your insurance company can do. They cannot simply decide to double your premium because they feel like it. They must follow the state-approved surcharge schedule, and there are specific rules about what triggers a surcharge and what does not.

The Rule Most People Do Not Know: Not-At-Fault Accidents Cannot Raise Your Rates

This is the single most important thing on this page.

This protection exists because the SDIP only assigns points for accidents where the insured driver is determined to be at fault. No points means no surcharge. Period.

Despite this clear rule, some drivers report seeing rate increases after filing claims for accidents that were not their fault. Sometimes this happens because:

• The insurer incorrectly classified the accident as at-fault
• The rate increase was actually due to a separate factor (a territory-wide rate adjustment, a lapsed discount, or a policy change at renewal)
• The insurer is simply violating the law

If you believe your rates increased after a not-at-fault accident, do not accept it. You have options, which we cover in the NC DOI complaint section below.

How the SDIP Point System Works

The SDIP assigns points based on two categories: at-fault accidents and traffic convictions. Points from each category are tracked separately, and the surcharges are cumulative.

At-Fault Accident Points

When you are involved in an accident and your insurance company determines you were at fault, SDIP points are assigned based on the severity:

Traffic Conviction Points

Traffic violations that result in convictions also generate SDIP points. These are separate from the DMV points on your license:

SDIP Surcharge Table: How Much Your Rates Will Increase

The SDIP translates your total points into a percentage surcharge on your insurance premium. Here are the approximate surcharges based on the state-approved schedule:

How Long Do SDIP Points Last?

Traditionally, SDIP points have remained on your insurance record for 3 years (3 policy periods) from the date of the conviction or the at-fault accident. After 3 clean years, the points drop off and the surcharge is removed.

The 2025 Changes: Extended Surcharge Periods

Starting in July 2025, North Carolina extended the surcharge period for certain serious violations from 3 policy years to 5 policy years. The violations affected by this change include:

• DWI / DUI convictions
• Hit-and-run convictions
• Reckless driving convictions
• Racing on highways

For standard at-fault accidents and minor traffic convictions, the 3-year surcharge period still applies.

Who Decides "At-Fault" for SDIP Purposes?

This is an important question, because the at-fault determination for SDIP purposes is not always the same as what the police report says or what the other driver's insurance decides.

For SDIP purposes, your own insurance company makes the at-fault determination. They review the facts of the accident -- the police report, statements from both drivers, witness accounts, photos, and any other evidence -- and decide whether you were at fault.

Here is what you need to know about this process:

• The police report is influential but not binding. Even if the police report says the other driver was at fault, your insurer can reach a different conclusion (and vice versa).
• You have the right to appeal. If your insurance company assigns at-fault status to you and you disagree, you can request a review. If the review does not resolve it, you can file a complaint with the NC Department of Insurance.
• Fault determination in NC follows specific principles, including NC's contributory negligence rule.

What to Do If Your Rates Increase Unfairly: The NC DOI Complaint Process

If you believe your insurance company raised your rates in violation of the SDIP rules -- particularly after a not-at-fault accident -- you can file a complaint with the North Carolina Department of Insurance.

Here is how the process works:

1. Gather your documentation. Collect your insurance declarations pages (showing the rate before and after), the accident report, any correspondence from your insurer about the at-fault determination, and any evidence supporting your claim that you were not at fault.
2. Contact the NC DOI Consumer Services Division. You can file a complaint online at ncdoi.gov, by phone at 1-855-408-1212, or by mail.
3. The DOI investigates. The department contacts your insurer and requests their documentation and explanation. The insurer is required to respond.
4. Resolution. If the DOI finds the rate increase violated the SDIP, your insurer will be required to correct it and refund any overcharges.

For the DOI contact information and other state agency resources, see our official NC resources page.

Prayer for Judgment Continued (PJC): NC's Unique Way to Avoid SDIP Points

North Carolina has a legal mechanism that does not exist in most states: the Prayer for Judgment Continued, or PJC. A PJC is a disposition where the court finds you guilty of a traffic violation but does not enter a formal judgment. Because there is no judgment, the conviction does not generate SDIP insurance points.

How a PJC Works for Insurance Purposes

• You (or your attorney) appear in court and request a PJC from the judge
• If the judge grants it, you are found guilty but no sentence is imposed
• Because there is no formal conviction on your record for SDIP purposes, no insurance points are added

PJC Limitations

PJCs have strict limits:

• One PJC per household every 3 years for insurance purposes. If your spouse or a family member on your policy already used a PJC in the last 3 years, it will not protect your insurance rates.
• Does not apply to at-fault accidents. A PJC can only prevent points from traffic convictions (like speeding tickets). It does not erase SDIP points from at-fault accidents.
• Does not apply to DWI. PJCs cannot be used to avoid insurance consequences of a DWI conviction.
• Judge's discretion. The judge is not required to grant a PJC. It is more likely to be granted for minor violations if you have an otherwise clean record.
• DMV points may still apply. A PJC prevents SDIP insurance points, but depending on the violation, DMV license points may still be assessed.

The NC Safe Driver Discount

North Carolina does not just penalize bad driving -- it also requires insurers to reward clean records. Under the SDIP, insurance companies must offer a Safe Driver discount to policyholders who maintain zero SDIP points for 3 consecutive years.

The discount percentage varies by insurer but typically ranges from 5% to 15% off your premium. This discount is applied on top of any other discounts you may qualify for (multi-policy, multi-vehicle, defensive driving course, etc.).

To maintain the Safe Driver discount, you must avoid:

• Any at-fault accident that generates SDIP points
• Any traffic conviction that generates SDIP points

One at-fault accident or one traffic conviction resets the clock. You will lose the discount and may also face a surcharge -- a double impact on your premium.

Shopping for New Insurance After a Rate Increase

If you have been surcharged under the SDIP, it is worth shopping around. Here is why: while all NC insurers must follow the same SDIP surcharge percentages, the base rate they start from varies significantly between companies. A 35% surcharge on a $1,000 base premium is very different from a 35% surcharge on a $1,500 base premium.

Tips for shopping after a surcharge:

• Get quotes from at least 3-5 companies. Include both large national carriers and NC-based regional insurers.
• Be honest about your driving record. Insurers will pull your CLUE report (Comprehensive Loss Underwriting Exchange) and your MVR (Motor Vehicle Record), so they will find out about your accidents and violations regardless.
• Ask about discounts. Some insurers offer more aggressive discounts for bundling, safe vehicle features, or completing a defensive driving course, which can partially offset a surcharge.
• Consider the NC Reinsurance Facility. If you have been non-renewed or cannot find coverage in the standard market due to your driving record, the NC Reinsurance Facility (also called the "assigned risk" pool) provides coverage as a last resort. Premiums are higher, but it ensures you can maintain the legally required insurance.
• Review your coverage levels. While you should never drop below NC's minimum requirements, make sure you are not over-insured on a vehicle that does not warrant it. Adjusting deductibles or dropping comprehensive/collision on an older vehicle can help manage costs. Review our guide to understanding your policy for more details.

How the SDIP Connects to NC's At-Fault Insurance System

North Carolina is an at-fault insurance state, which means the driver who caused the accident is financially responsible for the damages. The SDIP is the mechanism that translates that fault determination into insurance consequences for the at-fault driver.

This creates a system where:

• If you caused the accident, the other driver (or their insurer) pursues a claim against your liability coverage, and you face an SDIP surcharge on top of that
• If the other driver caused the accident, their insurance pays your claim, and your rates should not change at all
• How fault is determined is therefore critical to both your claim recovery and your future insurance costs

Understanding this connection helps explain why insurance companies fight so hard over fault determination. For the at-fault driver's insurer, every claim paid out also triggers SDIP consequences that may push the policyholder to shop for cheaper coverage elsewhere.

Frequently Asked Questions

Frequently Asked Questions

Will my insurance go up after an accident in North Carolina if it was not my fault?▾

No. North Carolina law explicitly prohibits insurance companies from raising your rates for an accident where you were not at fault. If your insurer increases your premium after a not-at-fault accident, you have the right to file a complaint with the NC Department of Insurance.

How long do SDIP points stay on my record in NC?▾

SDIP points from at-fault accidents and traffic convictions typically remain on your record for 3 years (or 3 policy periods). However, as of July 2025, certain serious violations now carry surcharges that last up to 5 policy years. The 3-year or 5-year clock starts from the date of the conviction or the date the at-fault accident occurred.

What is a Prayer for Judgment Continued (PJC) and can it prevent insurance points?▾

A PJC is a unique NC legal mechanism where a judge enters a guilty finding but does not impose a sentence. For SDIP purposes, one PJC per household every 3 years can prevent insurance points from being added for a traffic conviction. It does not apply to at-fault accidents -- only to traffic violations like speeding tickets.

How much will my insurance go up after an at-fault accident in NC?▾

Under the SDIP, a single at-fault accident with no injuries typically results in a surcharge of approximately 30-40% on your insurance premium. If the accident involved injuries, the surcharge can be around 65%. Two or more at-fault accidents can result in surcharges exceeding 130%, or your insurer may choose not to renew your policy.

Can I shop for cheaper insurance after an SDIP surcharge?▾

Yes, and you should. While all NC insurers must follow the SDIP surcharge schedule for base rates, the actual dollar amount varies because companies have different base rates. Shopping around after a surcharge can sometimes save hundreds of dollars per year. You can also check the NC Rate Bureau for approved rate comparisons.

What is the NC Safe Driver discount?▾

North Carolina requires insurance companies to offer a discount to drivers who maintain a clean driving record with zero SDIP points. The exact discount percentage varies by insurer, but it typically ranges from 5% to 15%. You earn this discount by going 3 consecutive years with no at-fault accidents and no traffic convictions.