NC DMV Points vs. Insurance Points: The 2026 Ultimate Comparison 🚦
NC DMV Points vs. Insurance Points: 2026 Comparison Table
The Quick Answer: They Are Not The Same
NC DMV Points count toward suspending your driver's license (12 points in 3 years = suspension). Insurance Points (SDIP) determine how much extra you pay for coverage. A single ticket often creates points on both systems, but Insurance Points hit your wallet immediately—potentially raising rates by 340% under current 2026 NC laws.
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Key Takeaways for NC Drivers
- DMV Points affect your privilege to drive. 12 points = Suspension.
- Insurance Points (SDIP) affect your premium. Just 1 point increases your rate by 30%.
- The 3-Year Rule: Insurance points stay on your record and affect your bill for three full years.
- Rates Have Changed: With 2026 inflation and higher repair costs, the dollar amount of that increase is higher than ever.
If you’ve recently seen blue lights flashing behind you on Highway 77 or got caught by a speed camera near Elkin, your first worry was probably the fine. But here at Bill Layne Insurance, we know the real pain doesn't come from the ticket itself—it comes from the renewal bill six months later.
Many drivers in the Yadkin Valley think a "point is a point." They assume the points that go on their license are the same ones that raise their rates. This is the #1 myth in North Carolina auto law.
1. The Two Systems: Why NC is Different
North Carolina operates under a unique system called the Safe Driver Incentive Plan (SDIP). This was created by state law to ensure that drivers with clean records pay less, and drivers who take risks pay more. It sounds fair, but it creates two totally separate scoreboards for your driving record.
Think of it like credit scores vs. bank balances. They are related, but they measure different things.
"You can lose your license without your insurance going up, and your insurance can skyrocket without losing your license. They are separate beasts."
— Bill Layne Insurance Team
The DMV Points (License Points)
These are managed by the NC Division of Motor Vehicles. Their sole purpose is to determine if you are safe enough to keep your license.
- Goal: Public Safety.
- Consequence: 12 points within 3 years results in a suspended license.
- Example: Passing a stopped school bus is 5 DMV points (huge deal).
The Insurance Points (SDIP Points)
These are managed by the North Carolina Rate Bureau. Their sole purpose is to determine your risk factor for pricing.
- Goal: Determining Premium Cost.
- Consequence: Rate increases ranging from 30% to 340%.
- Example: That same school bus violation is 4 Insurance Points, which increases your premium by 80%.
2. The Real Cost: Do The Math
In 2026, auto insurance rates across North Carolina have adjusted to account for higher vehicle repair costs and stricter liability minimums (now typically 50/100/50 for responsible drivers). This means the base rate is higher, so the percentage increase hurts even more.
One-Time Fine
You pay the court costs and the fine for speeding 76 in a 65 zone. It hurts once, and you think it's over.
Insurance Hike
Your rate goes up 45% (2 points). If your premium was $1,500/year, you pay an extra $675 per year. For 3 years.
That is why we tell our clients in Elkin and Jonesville: Never just pay the ticket without checking the insurance impact first. The court cost is the tip of the iceberg.
3. 2026 Comparison Table: Points vs. Price
Here is the definitive guide to how common violations translate to both systems. Notice how some "minor" traffic issues result in massive insurance hikes.
The Speeding Exception
North Carolina allows for a "Safe Driver" waiver on insurance points for speeding 10 mph or less over the limit, PROVIDED the speed is under 55 mph, and you have no other moving violations in 3 years. However, this does NOT apply to school zones!
| Violation Type | DMV Points | Ins. Points | Rate Hike % |
|---|---|---|---|
| Speeding (10 mph or less over limit) | 2 | 1 | +30% |
| Speeding (More than 10 mph over) | 3 | 2 | +45% |
| At-Fault Accident (Under $2,300 damage) | 0 | 3 | +60% |
| Reckless Driving | 4 | 4 | +80% |
| Passing Stopped School Bus | 5 | 4 | +80% |
| DWI / DUI | Revoked | 12 | +340% |
| Driving During Revocation | Revoked | 8 | +195% |
4. What To Do If You Get A Ticket
So, the officer handed you that slip of paper. Don't panic. You have options before the court date that can save you thousands of dollars over the next three years. Here is the timeline of how a savvy driver handles a violation in North Carolina.
Do Not Just Pay It Online
Paying the ticket online is an automatic admission of guilt. You are pleading guilty to the charge exactly as written. This guarantees the max insurance points.
Call Your Agent (Us!)
Call Bill Layne Insurance at 336-835-1993. We can look at your current policy. Do you have "accident forgiveness"? Have you used a PJC recently? We can tell you exactly what the financial damage will be.
Seek a Reduction
Often, district attorneys will reduce a speed (e.g., from 76 in a 65 down to "Improper Equipment"). Improper Equipment is a non-moving violation—meaning ZERO insurance points.
Consider a PJC
A "Prayer for Judgment Continued" is a unique NC legal tool where the court admits guilt but enters no judgment. Used correctly, it prevents insurance points. However, you can generally only use one per household every 3 years.
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Whether you have a clean record or a few bumps in the road, Bill Layne Insurance specializes in finding the best coverage for NC drivers. Don't let a ticket define your budget.
Bill Layne Insurance
1283 N Bridge St, Elkin NC 28621
www.NCAutoandHome.com
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