The automobile liability insurance rates which are paid by licensed drivers in North Carolina are determined by five factors: The basic North Carolina automobile insurance rates which are set out in the North Carolina Personal Automobile Manual. Also see the NC Rate Bureau. Insurance points which they have accumulated during the past three years for moving violations and accidents. Whether their insurance company has transferred their coverage to the reinsurance facility. What region of North Carolina they live in. Whether that have three years or less driving experience. Whether that have three years or less driving experience. North Carolina drivers will be assessed insurance points if convicted of a moving violation or if they have an at fault accident during the three-year period immediately preceding the date of application or renewal of insurance. Each household may receive one Prayer for Judgment Continued (PJC) every three years without it counting as a conviction. Table of Insurance Points 12 Points - Manslaughter (or negligent homicide) resulting from the operation of a motor vehicle. (Felony) Prearranged highway racing or knowingly lending a motor vehicle to be used in a prearranged race. (Felony)  Failure to stop and render aid when involved in an accident resulting in bodily injury or death (hit-and-run driving) (Felony)  Impaired driving, including driving a vehicle while under the influence of an impairing substance; driving a vehicle with an alcohol concentration of 0.08% or more; and driving a commercial vehicle with an alcohol concentration of 0.04% or more (a revocation pursuant to G.S. ¤¤20-16.5 is not a conviction). (Misdemeanor)  Transportation of intoxicating liquors for the purpose of sale. (Misdemeanor) 10 Points - Highway racing (not prearranged) or knowingly lending a motor vehicle to be used in the race.  Speeding to Elude. 8 Points - Operating a motor vehicle during a period of revocation or suspension of either the driver's license or vehicle registration. (Misdemeanor) 4 Points - Failure to stop and report when involved in a motor vehicle accident resulting in property damage only (hit-and-run). (Misdemeanor)  Reckless driving. (Misdemeanor)  Passing a stopped school bus.  Speeding in excess of 75 miles per hour (mph) when posted limit is less that 70 mph. (Misdemeanor)  Speeding in excess of 80 mph when limit is 70 mph or greater  Driving by a person under 21 after consuming alcohol or drugs. 3 - Points Each at-fault accident that results in bodily injury (in excess of $ 1800.00) or death or total property damage (including the insured's property) of $ 3000.00 or more. 2 - Points  Illegal passing  Speeding more than 10 mph over the limit, if total speed was in excess of 55 mph but less than 76 mph.  Speeding 10 miles or less in excess of limit in speed zone of 55 or greater.*  Following too closely.  Driving on the wrong side of the road.  Each at-fault accident that results in total damage to all property which is in excess of $1 ,800.00 but less than $ 3000.00 3-4-2005. 1 - Point  Speeding 10 mph or less in excess of a speed limit of less than 55 mph.*  Any other moving violation.  Each at-fault accident that results in total damage of $ 1,800.00 or less. *Points are not assigned for these violations unless the same driver has been convicted of at least one other moving violation during the three years prior to this event.   The number of insurance points a driver receives will determine the surcharge which will be added to their insurance costs. Insurance Surcharge Table One 25% Two 45% Three 65% Four 90% Five 120% Six 150% Seven 180% Eight 220% Nine 260% For 1 point accidents ($1800.00 or less) there is no surcharge assessed if: The operator was not convicted of a moving traffic violation in connection with the accident. No licensed driver in the owner's household has a conviction for a moving traffic violation or other at fault accident during the three-year period immediately proceeding the date of application or the date of preparation of renewal of the policy. There was no personal injury. If you receive a citation for a traffic offense in connection with a traffic accident, you may be able to avoid conviction on that charge(s) by obtaining a letter from your insurance company stating that they have assumed financial responsibility for the accident. When presented with such a letter, many District Attorneys will dismiss the charge(s) against you. In the event that you are convicted of a moving violation in connection with a traffic accident you will not be assessed points for both the moving violation and the accident. The higher of the surcharge points will be assigned to you. The Reinsurance Facility   After the number of points, the second major factor affecting the cost of liability insurance is whether a motor vehicle owner has been transferred to the North Carolina Motor Vehicle Reinsurance Facility which provides liability insurance for drivers or vehicle owners whom companies do not wish to insure as part of their regular voluntary business.   If an applicant for motor vehicle liability insurance is, for any reason, considered an undesirable risk by the company, it may transfer the applicant to the Reinsurance Facility even though the person has a clean driving record.  In other words, it is possible for a person who has never received a traffic citation or had an accident to be ceded to the Reinsurance Facility. Obviously, those with bad driving records are prime candidates, but a company may transfer anyone it considers a bad risk for any reason. Reportedly young drivers, the elderly, and some occupational groups often fall within this category. There is no appeal process, but applicants may seek coverage with another company that would not transfer them to the Reinsurance Facility. Because the Reinsurance Facility has many high-risk drivers, the SDIP provides that it may charge a higher base rate than is allowed in the voluntary market.  Territory  The third factor determining a person's automobile liability insurance costs is where the person lives in North Carolina. The state is divided into nineteen territories, each with its own base rate. The cost of insurance varies considerably from territory to territory. Age and Sex  A fourth factor that can raise an insured's liability insurance cost is inexperience as a driver, which usually correlates closely with age.  The 1975 Session of the North Carolina General Assembly enacted legislation intended to prohibit insurance rates from being based on the ages or sex of the insured. Specifically, G.S. 58-3-25 provides: "No insurer shall . . . base any standard or rating plan for private passenger automobiles or motorcycles, in whole or in part, directly or indirectly, upon the age or sex of the persons insured." But the youngest drivers typically pay higher insurance rates (or have their parents pay the higher rates for them), because the surcharge is added to policies that cover drivers who have fewer than three years' driving experience as a licensed driver. (The surcharge is not added when a member of the household begins driving under a learner's permit; and time spent driving on a learner's permit does not count toward the three years). For most drivers, the surcharge is applied from age sixteen to nineteen, causing its impact to be felt most by young people and those who pay the insurance for young people, but the same rule would be applicable to a fifty year old if that person had no previous driving experience. This Surcharge approximately doubles the cost of liability insurance on the car the inexperienced driver "principally operates". This is general information about Traffic points and is not intended to be a substitute for legal advice as it relates to your particular situation. Consult with our office to discuss how your particular facts relate to the law.