How Does the Insurance Points System Work?

Many of you have probably heard of a drivers lisence points system; but did you know that there is also an insurance points system?

In 1957, North Carolina institued the Safe Driver Incentive Plan(SDIP) to help promote safe driving practices. You will receive insurance points when you are convicted of a traffic violation, or are found to be at-fault(even partially at-fault) in an accident.Traffic violations are separated into categrories and assigned a point value. The more serious the violation, the more points are charged. Your insurance rate inscreases by a certain percentage based on the number of points you have been charged. Driving safely can keep money in your wallet!

Insurance points are why your auto insurance rate goes up after an accident or a ticket. Because the points are associated with your auto insurance policy and not your specific drivers lisence, your rate can go up because of a family member's accident or ticket. The points added to your insurance can build up over time, but they are not permanent. SDIP points remain chargeable for three years from your conviction date. The points will be removed at the insurane policy renewal date, after the three year period is up.


If we are all honest, most of us can be rightly accused of speeding at one time or another. Many people say things like, "As long as you are going less than 10mph over the speed limit, you are ok."
Technically if you are driving even 1mph over the limit, you are speeding and can be ticketed.How many points speeding will cost you depends on what the posted speed limit is. Here are just a few examples:

-Speeding 10mph or less in excess of speed limit of less than 55mph: 1 insurance point

So if you are pulled over for driving 40mph in a 35mph zone(possible, but not likely) you will have 1 point added to your insurance policy. This earns you a 30% rate increase!

-Speeding 10mph or less in excess of speed limit of 55mph or greater: 2 insurance points
-Speeding more than 10mph provided the total speed is greater than 55mph, but less than 76mph:
2 points

In this case, if you are going 60mph in a 55mph zone(again, its unlikely that you will be pulled over for this, but you CAN be) or, if you are going 75mph in a 55mph, you will have 2 points added to your insurance policy. This will result in a 45% rate increase. If your original rate was $300, then you are now paying $435, an increase of $135 per month!

-Speeding in excess of 75mph when the speed limit is less than 70mph:4 points
-Speeding in excess of 80mph when the speed limit is 70mph or greater:4 points



On Highway 29 in Rockingham County, the speed limit is 70mph, but once you enter into Guilford County, the speed limit drops to 55mph. I will use this area as an example. If you are in Rockingham County driving 81 mph on Hwy 29(which if pulled over can result in ticket costing you 4 points and an 80% rate increase), then you hit Guilford County and you don't slow down, you are now going 26mph over the speed limit. If you are pulled over going 81mph in a 55mph zone, you will get 4 points for the speeding violation, but you may also be ticketed for Reckless Driving. It is possible that you could be charged 4 points for each conviction, resulting in 8 points being added to your insurance. 8 points on your insurance will result in a 195% rate increase, turning that $300 a month rate into $885 per month.

The moral of this story is, folks, driving safely will protect both you and your bank account. Speeding is such a commonplace traffic violation, but do not take for granted that going 5-10mph over the speed limit is ok. You can be ticketed for it, and if convicted(or if you plead guilty), not only will you pay the fine, your insurance rate will go up and stay up for three years. If you are ticketed for a traffic violation, talk to your insurance agent or their staff before you plead guilty and pay the fine. They can give you adivce about how much your rate could increase, and whether you may want to talk to an attorney about going to traffic court for you. The legal fees may actually be less than what you would pay for having a traffic conviction on your insurance for three years.

For a complete chart of the SDIP Points system, click here.

Why is Insurance Important?

Recently I had some issues arise with my health insurance that could have resulted in my daughter and I losing our coverage. I have to admit that, to some extent, I saw not having health insurance as a relief because it could have resulted in a lot more take home pay for me! I have yet to use my health insurance this year, and really didn't see myself using it any time soon. For my daughter though, I had to cancel her upcoming 18 month check up/vaccinations until I got the issue resolved. Part of me really wanted to just let it cancel and keep the money so that I could buy some things that I normally would not have the extra funds to buy, and also further help my husband pay the bills.

It was pointed out to me, however, that even though nothing might happen between now and open enrollment in November, that something could happen. My daughter, Audrey might get sick, or injured. She is learning to climb now, and just imagine if she attempted to climb her swing set at home and fell and broke her arm. There is no way to prepare for those medical bills except to have health insurance.

That is why we have insurance-to be prepared for the things that could happen.

We are required by the government to have auto insurance. If you didn't have car insurance, and you had an accident, you alone would be responsible for the damages to your car(and possibly having to buy a new car) and injuries you incur. You may also then be sued for the vehicle damage and bodily injury to the other driver! That would bankrupt a lot of people. Tens of thousands of dollars. As it is, those of us who are following the laws of the land have car insurance that helps us to afford these costs in the case of an accident.

Homeowners insurance covers a huge variety of incidents from roof damage during a storm to a person injuring his/herself on your property. Imagine what would happen if you didn't have homeowner's insurance. Something would happen, and you would be hit with a bill or lawsuit for, again, tens of thousands of dollars-maybe even more.

Then there is health insurance. I am one of those people who skated by without it for a few years because I am young and healthy. Many people, in spite of the Affordable Care Act penalizing those without health insurance, did not enroll in health insurance because the penalty for not having health insurance is much cheaper than the annual premiums for having health insurance. However, they are playing a virtual game of chicken. Accidents are called accidents because they are unintended-they can't be planned for. Diseases and illness are out there, and you will never know when disaster may strike.

Part of growing up is learning to look ahead at the future and not focusing solely on the present. Mature adults know that planning and preparing for the worst is essential to not being a victim of chance. Life insurance becomes an important factor as you prepare for your loved ones in the inevitability of death, and the scary possibility of a sudden, unexpected death. Unfortunately, often people don't think about buying life insurance until they are very sick, or close to the end of their lives and then it can be much more expensive. Your untimely death could result in tens of thousands of dollars in debt and bills that your grief stricken family will now have to shoulder, unless you have a life insurance policy in place to help protect them.

All insurance policies do one thing-they help us prepare for the unknown. Insurance is the one thing that you buy, hoping you will never have to use. Its like a security system for your life. You hope the alarm never goes off; but when it does, you are so glad it was there to help protect you from the unknown forces of destruction in the world.

I've Had a Car Accident-Now What?

I remember my first accident. A white sedan drifted out of her lane on a curve and side swiped me with her side-view mirror. I was on my way back from a lunch break, and I knew I would be late if I stopped, so I was tempted not to...but I realized I had to stop. So I pulled over, and the sedan pulled over too. I wasn't sure what to do first, so I called my insurance agent.
 "Dad, I've just been in an accident. I'm fine, its nothing serious. What do I do?"
My agent asked me if it looked like over $500 worth of damage-pssh, I didn't know! It was just a scratch and small dent, surely it couldn't cost over $500(which was my deductible). It ended up costing well over $1500 to fix the damage. Anyway, I didn't call the police, but the lady and I exchanged information, and because it was her fault, we filed on her insurance. Long story short, I got my car fixed, but I made a few mistakes that could have cost me a lot of money if the other driver hadn't been honest. Thank goodness there are still many honest people out there!

So, for those of you have not been in an accident before, let's go over the proper steps to handling an accident.


#1 Check for injuries. Make sure you and the other driver are ok, as well as any passengers.Call emergency services if needed.

#2 Call the police to report the accident. Whether the damage is serious or not, go ahead and have a police officer come down to take statements. Having official statements taken will ensure that the other driver can't change their story later to avoid having their insurance pay for damages, and it will be much easier for the adjuster to determine fault. They officer can also take official witness statements, if there are any. The statements also shows evidence of a loss.

#3 Take photos of the damage. Your adjuster will take photos, but if you have your own photos, you can be sure the adjuster didn't miss anything, and you will have your own personal records of the damage. Take pictures of the license plates too.Go ahead and take pictures while you are on the scene.You never know when that might be helpful.

#4 Report the claim to the insurance company. Most have a specific 800 number available 24/7 that you should report the claim to. Your agent can give you the claims number if you don't have it. Report the claim as soon as reasonably possible.

 #5 Get an inspection and estimate of the damages. Your insurance company will send an adjuster to take photos of the damage and give you an estimate on the cost of repairs. You can get your own estimates from a shop for comparison. Your insurance company may recommend a specific body shop, but you are not obligated to use that shop. You can use whichever shop you would like to.

#6 Work with an adjuster.The adjuster will analyze the information-the damage to your vehicle, accident/police reports and any witness statements- to determine which driver was at fault and what will be covered by the policy. Your insurance company may have a way for you to check your claim status online and view documents, or you can contact the adjuster to review the claim status.

#7 Get your vehicle repaired.As soon as the claim is filed and coverage is figured out, the adjuster will guide you through the steps to getting your car repaired. You will need to pay your deductible, if any, to the body shop before the insurance company will pay for anything.  Then you simply drop off your vehicle to the body shop and-wallah! You've finished the process.

Avoiding Independence Day Claims

Happy Independence Day! The 4th of July is one of the most fun holidays we celebrate in the United States. Many of us will be attending or hosting cookouts and maybe enjoying some fireworks. Both when I worked for an optometrist, and now working in insurance, staff members like to talk about
what sort of claims or problems will arise from typical holiday activities. Today I am going to list a couple of the potential Independence Day hazards, and offer some tips to avoid ruining a great holiday.

Issue: Car Accidents

#1 Put down your cell phone and pay attention to the road. There will be lots of drivers on the road because most everyone is off work and out of school. More drivers on the road increases the chances of an accident, so you will need to be alert and aware. Pull over to take a phone call, and wait until you're parked to check and answer text messages.

#2 Keep the noise level and frivolity in the car down to minimum. Many drivers, especially young drivers, get into accidents when driving with a car full of people. If you are the driver, stay focused on the road! If you are the passengers, try to create an environment conducive to driving safely. Don't try to show the driver pictures or videos on your phone etc. 

#3 DON'T DRINK AND DRIVE. This includes operating boats and jet skis!Many of our 4th of July cookouts will involve coolers full of beer etc. Be responsible. If you know you are going to be driving, stay on the safe side and completely avoid alcohol. Have a soda! I promise it won't ruin your good time. 

Issue: Home Fireworks Accidents

First of all, as an insurance agent, I would like to advise against any illegal fireworks. In North Carolina, illegal fireworks include:
-firecrackers
-ground spinners
-roman candles
-bottle rockets
-mortars
-and anything that spins, leaves the ground, or flies through the air.

Any damage to yourself, others, or your property while using illegal fireworks will not be covered under insurance. Your homeowners' won't cover it, and if your health insurance company finds out, they won't pay any claims either. Insurance will not pay on anything that happens while doing something illegal. Just a little thought for those of you buying fireworks in another state and bringing them home to NC for the 4th.

Legal fireworks include:sparklers,shower fountains, and novelty fireworks that do not explode(snaps, pops, and glow worms). For a complete view of NC's Statutes on fireworks, click here.

A few Saftey Tips on Fireworks:
#1 Read the labels on anything you are using and follow instructions carefully. You want to know what to expect out of the firework before lighting it.
#2 A repeat. ALCOHOL AND FIREWORKS DO NOT MIX WELL. If you have had a few beers, ask someone that has abstained to be in charge of lighting fireworks. Many an accident has happened by mixing drunkenness and pyrotechnics.
#3 Wear Safety Glasses. You only get one set of working eyeballs in this life, please don't ruin your life.
#4 Never Relight a Dud firework. If it doesn't go off, soak the firework in water and discard.
#5 Light Fireworks one at a time. You're not a professional, you don't have professional equipment, so don't try to put on a finale like a professional.

For more fireworks safety tips, click here. I would recommend braving the crowds and watching fireworks done by professionals at an event.

In general folks, lets enjoy Independence Day like our forefathers intended:like civilized people. Enjoy your family and friends, have fun without completely letting go of your good sense, and follow the rules. Do I sound stuffy and boring? Well, I am an insurance agent. Stuff-And-Boring is my middle name.