NC Traffic and NC High Risk Auto Insurance Points

NC Traffic and NC High Risk Auto Insurance Points

Driving 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 (NC DMV) 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 than 60 days. The second suspension shall not exceed 6 months and any
subsequent shall not exceed one year. If you are in danger of losing your
license because you have accumulated too many drivers’ 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 you
insurance. You can only take this Driver Improvement Course once every 5 years.

Once your license has been reinstated, 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.


Schedule of Driver License Points

5 Points

  • Passing a stopped school bus
  • Aggressive driving

4 Points

  • Reckless driving (Misdemeanor)
  • Hit and run, property damage only (Misdemeanor) (If personal injury =
  • Failure to yield right of way to pedestrian(s) at an intersection
  • Failure to yield right of way to bicycle, motor scooter, or motorcycle
  • 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

2 Points

  • Failure to properly restrain a child in a restraint or seat belt

1 Points

  • Littering involving use of motor vehicle

0 Points

  • Seatbelt violations
  • Fail to display registration sticker or license plate



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 the interstate
Driver License 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 the 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
a 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.

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 your
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

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 a possibility of obtaining a limited driving privilege through the court

A household can request a Prayer for Judgment Continued (PJC). A Prayer for
Judgment Continued is a request to the court by the defendant after the
defendant has been bound guilty either by the defendant s plea or by a trial.
The defendant can make the request and the judge, at his or her discretion, will
decide to not pass final judgment and sentence on the defendant.

The Prayer for Judgment Continued maybe temporary or permanent. The Judge may
ask the defendant to complete certain obligations. A Prayer for Judgment
Continued is unique in North Carolina and cannot be used in other states.

A household can request a PJC to avoid an increase in insurance points;
however, if anyone in the household received a moving violation within the
following three years, the PJC becomes invalid.

PJCs are not allowed for DWI s if the driver is of legal drinking age,
failing to stop for a properly marked school bus, and speeding in excess of 25
miles per hour or more over the posted speed limit. Court cost must also be

 If you have a North Carolina commercial trucking business
you may find help with quotes for commercial vehicles at



Insurance Rates:

Drivers in North Carolina are required to have insurance. Insurance rates are
determined by different factors.

  • The driver’s driving record: Any convictions for moving violations or if
    the driver was at fault for accidents could increase the insurance rate.
  • Experience of the driver: Younger drivers are more likely to pay a
    surcharge. The surcharge will decrease with each year of driving experience.
  • Location: The area where you drive and where the car is usually parked
    will affect the insurance rate. Populated areas increase the rate due to the
    larger number of accidents and thefts as compared to rural areas.
  • How the car is used: The more the car is used the more insurance will be
    paid. A car driven everyday is considered a greater risk than a car driven
  • Type of automobile: The likelihood of theft, cost of repair and
    replacement, and the style of vehicle (sports car, SUV, station wagon, etc.)
    will influence your premium. For example, a sports car will normally have a
    higher premium than a family sedan.
  • Type of insurance: Liability is required by state law but as you add
    additional coverage the cost for the insurance will also go up. Additional
    coverage includes: Collision, Comprehensive, medical payment coverage, and
    uninsured or underinsured motorist coverage.
  • Insurance points: Any Insurance points that have accumulated in the past
    three years for moving violations and/or accidents will affect your
    insurance rate.
  • If the driver’s coverage has been transferred from the reinsurance
    facility, this may affect the insurance rate.


Insurance Points:

North Carolina has a Safe Driver Incentive Plan. It rewards safe drivers with
the lowest possible insurance rates. Drivers who are convicted of moving traffic
violations and/or cause accidents will be charged higher insurance premiums and
will receive insurance points. Points accumulated in three year periods. This
three year period is determined as the date of application for insurance or the
date the renewal application for insurance was prepared.

A request for a second PJC may cause points to be charged according to the



  • Manslaughter or negligent homicide
  • Prearranged highway racing or knowingly lending a motor vehicle for
    prearranged highway racing
  • Hit-and-run resulting in bodily injury or death
  • Driving with a blood-alcohol level of .08 or more
  • Driving commercial vehicle with a blood-alcohol level of .04 or more
  • Driving while impaired
  • Transporting illegal intoxicating liquor for sale



  • Highway racing or knowingly lending a motor vehicle for highway racing
  • Speeding to elude arrest



  • Driving during revocation or suspension of license or registration
  • Aggressive driving



  • Reckless driving
  • Hit-and-run resulting in property damage only
  • Passing a stopped school bus
  • Speeding in excess of 75 mph when the speed limit is less than 70 mph
  • Speeding in excess of 80 mph when the speed limit is 70 mph or greater
  • Driving by a person less than age 21 after consuming alcohol or drugs



  • At-fault accident resulting in death, or total bodily injury* (to all
    persons) in excess of $1,800; OR resulting in total property damage
    (including damage to insured s own property) of $3,000 or more.



  • Illegal passing
  • Following too closely
  • Driving on wrong side of the road
  • At-fault accident resulting in total property damage (including damage
    to Insured s own property) in excess of $1,800 but less than $3,000
  • Speeding more than 10 mph over the speed limit provided the total speed
    is in excess of 55 mph, but less than 76 mph
  • Speeding 10 mph or less in excess of speed zone of 55 mph or greater


  • Speeding 10 mph or less in excess of speed limit of less than 55 mph
  • At-fault accident resulting in bodily injury* (to all persons) of $1,800
    or less; OR resulting in property damage (including damage to insured s own
    property) of $1,800 or less
  • All other moving violations


*No Insurance points will apply for bodily injury if the insured furnishes
proof that the medical costs were incurred solely for diagnostic purposes.

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

Insurance Points Surcharge

Points| % of Rate
| of Increase
| Cost if Basic
| Rate is $300
Points| % of Rate

| of Increase

| Cost if Basic

| Rate is $300



Special Exemptions No SDIP Points Will Be Charged For:

An accident provided all of the following are true:

  • There is property damage only;
  • The amount of damage is $1,800 or less;
  • There is no conviction for a moving violation in connection with the
    accident; and
  • No licensed operators in the household have convictions or at-fault
    accidents during the experience period. (An insurance company may require
    that the insured be covered by that company for six continuous months.)


Speeding 10 mph or less over the posted speed limit; provided all of the
following are true:

  • The violation did not occur in a school zone; and
  • There is not another moving traffic violation for the experience period
    (an isolated Prayer for Judgment Continued [PJC ] will not count as a prior
    conviction for the purpose of this exception).


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 regularly 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

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 not 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. 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.




DMV directAccessThis is an automated information
telephone service that is a convenient way to obtain information about driver
licenses and vehicle registration from the North Carolina Department of
Transportation (NCDOT) Division of Motor Vehicles (DMV). Dial (919) 715-7000
from a touch-tone telephone, and access information 24 hours a day, seven days a


DMV directAccess gives you the facts about:

  • Driver licenses, learner permits, motorcycle license endorsements,
    commercial driver licenses (CDLs) and special identification cards;
  • Personalized information you should know about points against your
    driver license, your driving record and the status of your driver license;
  • Medical and vision forms, exam cycles, records and hearings;
  • Vehicle registration, duplicate titles, lost or stolen license plates,
    personalized and vanity license plates and handicapped placards; and
  • Liability insurance and more.


DMV directAccess also includes information about
driver license and vehicle registration taxes and fees. By entering your zip
code, the system can give you the location of a driver license or vehicle
registration office in your area.

DMV Information (919) 715-7000