North Carolina Car Insurance - Effects of Driving Record 

If statistics are to be believed, North Carolina fares very badly when it comes to road safety. Every year, numerous people die due to road mishaps which have been a cause of worry for the authorities. Arguably, there are a large number of unsafe drivers on the state roads and there isn’t much that can be done on that front except to secure yourself and buy a decent car insurance policy to cover the financial needs in case an accident happens. Remember, accidents involve two parties which means even the best of drivers can end up being a part of one with no fault of their own. Since a car insurance policy has to be bought, there are many who would prefer not to buy it if it wasn’t compulsory.

Hence, in order to keep the interests of everyone alive, the government of North Carolina has passed certain terms and conditions that have to be met by everyone. Only when car owners do meet them are they allowed to legally drive on the streets. As such, people try to minimize the total amount paid in premiums by qualifying for discounts and special offers. However, someone with a bad driving record would find himself in the wrong end. Let’s look into how a bad record can affect the premium value. It is vital to understand that driving record is one of the major factors used by car insurance agencies when calculating quotes. As per the state laws of North Carolina, drivers are awarded points whenever they are found to be indulging in acts of recklessness. Hence, higher the point tally, higher would be the premium amount.

Some examples of how and why the points are allotted are:

a) 1 point will be added to the car owner’s record in case he is caught driving at speeds higher than prescribed, found to be at fault in an accident involving damages equivalent to $1,800 or less. This is also applicable in case of any other infraction in the minor category. Either way, the amount of premium is liable to increase by 25%.

b) 2 points are added if the driver is found to be involved in rash driving practices like driving at speeds higher than the prescribed limit, illegal passing etc. Addition of these two would mean an increase by up to 45% in the insurance costs.

c) 4 points are added when caught driving under the influence of alcohol, excessive speeding, hit and run accidents, underage driving etc. This may result in cost increase by up to 80%.

d) 8 points if driving when registration or driving license has been suspended or revoked. This means a steep escalation of 190% in the premium costs. People who find themselves with more points than these are considered to be high risk drivers and the companies have to right to refuse them an insurance policy. This would mean that the individual goes uninsured and cannot legally sit behind the wheels of the car. Thus, make sure to keep a clean record and not be involved in anything that ends up costing very dear.