Insurance Points and DUI/DWI Charges
How can an impaired driving charge or conviction affect my car insurance rates?
The penalties of a DWI conviction in North Carolina are daunting. But even after your license is reinstated and probation finished, the insurance points assessed due to the DWI will continue to cost you thousands per year. Here are some of the insurance costs and penalties you can expect after being convicted of DWI in North Carolina.
Insurance Points
North Carolina has a special system called the Safe Driver Incentive Plan (SDIP) that governs what rates insurance companies can charge to drivers. These rates are generally based on a series of factors as well as the number of SDIP points on the driver’s record. SDIP points are acquired when drivers are found responsible for accident collisions or when convicted of certain traffic violation. These points are separate from driver’s license points that the Division of Motor Vehicles (DMV) records and have distinct treatment.
When drivers are assessed SDIP points, the insurance company is permitted to charge an increased rate. A person that is convicted of driving while impaired or with a blood alcohol content of .08%, will be assessed 12 SDIP points. At 12 points, the insurance company is authorized to increase the driver’s rate 340%. Other complications like causing a vehicle collision or injury to another person can exponentially increase the number of points and the charged rate.
So, if a driver has a $500 six-month premium, he or she can be required to pay up to $2,200 every six months if convicted of DUI.
Options
These costs are generally unavoidable as all drivers are required to carry insurance and the DMV requires proof of insurance before a driver’s license can be reinstated after a DUI suspension. However, the increased rate won’t be permanent. Insurance points generally stay on your record for three years, and then are no longer considered by insurance companies. However, even three years of triple rates can cost thousands of dollars.
Of course, the best option is to avoid a DWI conviction. Our experienced legal team can analyze your case to find the best defense and fight for that not-guilty verdict.
Citations: