What is the NC SDIP?
The North Carolina Safe Driving Incentive Plan (SDIP) was established in 1957 by the NC Department of Insurance. Its purpose is straightforward: give drivers a financial incentive to drive safely by tying your insurance premium directly to your driving record. The safer you drive, the less you pay. The worse your record, the more you pay — sometimes dramatically more.
The SDIP is a points-based system administered by the NC Rate Bureau. Points are assigned for traffic violations and at-fault accidents, and they affect your auto insurance premium at each renewal. Crucially, SDIP points are a separate system from the DMV's driver's license point system — though the same violation can result in points on both records simultaneously.
How points affect your premium
Points remain on your SDIP record for three years from the date of conviction or accident. During that time, they apply a surcharge multiplier to your base auto rate at renewal. Multiple violations in the same three-year window stack — meaning two separate incidents can compound your premium increase significantly.
The good news: once the three-year window passes, the points drop off your record and the surcharge goes away at your next renewal.
NC SDIP Points & Premium Impact
| Points | Premium Increase | Violations |
|---|---|---|
| 12 | +340% | DUI / DWI, driving while impaired, felony involving a vehicle, manslaughter with a vehicle, hit-and-run causing bodily injury |
| 10 | +260% | Highway racing / speed competition, fleeing or eluding arrest in a motor vehicle |
| 8 | +200% | Driving while license suspended or revoked, aggressive driving |
| 4 | +90% | Reckless driving, passing a stopped school bus, speeding 26+ mph over limit, passing in a no-passing zone |
| 3 | +70% | At-fault accidents resulting in bodily injury or property damage exceeding $2,300 |
| 2 | +55% | Illegal passing, following too closely, failure to yield, improper lane change, speeding 10–25 mph over limit |
| 1 | +40% | Other moving violations, minor at-fault accidents with damage under $2,300, failure to wear seatbelt (some circumstances) |
Minor accident exception: At-fault accidents with total damages of $2,300 or less may avoid the standard surcharge — provided no moving violation was also cited at the incident. This threshold is periodically updated by the NC Rate Bureau.
Key things to know
- SDIP points are triggered by conviction dates, not incident dates. A ticket issued in November may not affect your premium until the following renewal if you contest it in court.
- Points from other states can transfer to your NC record if they appear on a national driving record exchange.
- A driver with no SDIP points for three consecutive years is typically considered a preferred-tier driver and qualifies for the best available rates.
- If you're shopping coverage after a violation, an independent agent like Carolina Industrial can compare rates across multiple carriers — each weights SDIP points differently in their underwriting.