Understanding North Carolina’s Safe Driver Incentive Plan (SDIP)

If you drive in North Carolina, your driving habits don’t just affect your safety — they directly impact how much you pay for auto insurance. That’s because North Carolina uses a statewide system called the Safe Driver Incentive Plan (SDIP), which rewards safe drivers and penalizes risky behavior.

Here’s what every North Carolina driver should know.

What Is the Safe Driver Incentive Plan?

The SDIP is a program established by North Carolina law and regulated by the North Carolina Department of Insurance (NCDOI).Its goal is simple: encourage safer driving by adjusting insurance rates based on your driving record.

In short:

• Safe drivers enjoy lower premiums.

• Drivers with accidents or violations may see higher premiums through a surcharge system.

Your insurance company applies SDIP “points” for each at-fault accident or traffic conviction on your record. Those points translate into a percentage increase on your auto insurance rate.

How the SDIP Point System Works

Each incident or violation is assigned a certain number of SDIP points. The more serious the violation, the higher the points — and the greater the premium increase.

SDIP Points	Typical Violation Example	Approximate Rate Increase
1 point	Minor moving violation or small at-fault accident	+40%
3 points	Serious at-fault accident causing injury or major property damage	+70%
12 points	Most severe offenses (DWI, hit-and-run with injury, manslaughter)	Up to +340%

The “experience period” — the time frame used to assess your record — is generally three years before your policy starts or renews. However, for certain violations after July 1, 2025, the period will extend to five years.

Exceptions and Reductions

Not every incident will result in a surcharge. You may avoid SDIP points if:

• The accident caused property damage only under the state’s minimum threshold (around $2,300)

• No moving violation conviction occurred in connection with the accident

• You were ticketed for driving 10 mph or less over the speed limit under specific conditions

These exceptions are designed to protect drivers from harsh penalties for minor or isolated mistakes.

Why SDIP Matters to You

Your driving record directly influences your insurance costs. Even a single violation can raise your premiums for several years.

By understanding the SDIP:

• You can anticipate how a ticket or accident may affect your rates

• You can make informed choices about contesting tickets or seeking legal counsel

• You can stay motivated to maintain a clean driving record

Tips to Keep Your Insurance Costs Low

1. Drive safely and defensively — avoiding violations is the best savings strategy.

2. Review your driving record annually.

3. Ask your insurer how specific incidents affect your SDIP points.

4. Consult an attorney if you receive a citation or face an at-fault accident claim.

Learn More

For official details, visit the North Carolina Department of Insurance – Safe Driver Incentive Plan.

Worried about how a recent ticket or accident might impact your insurance rates?

Contact Poteet Law Firm to discuss your options. Our team can help you understand the SDIP, protect your driving record, and minimize the financial impact of traffic violations.