Your Auto Insurance Premium Changes Based Upon Insurance Points Each Time You File a Claim

Many factors affect your premium when you file a claim, but North Carolina caps how much companies can raise your rates

Filing an auto insurance claim often leads to higher premiums for several years. In North Carolina, strict state regulation keeps base rates low, but every at-fault accident or moving violation adds “insurance points.” Those points translate into premium increases set by each insurer within the maximum allowable range. Understanding how points work, caps on rate hikes and strategies to limit increases can save you hundreds or thousands of dollars in the long run.

North Carolina’s regulated rate environment

North Carolina drivers enjoy some of the most competitive auto insurance rates in the nation. The state Department of Insurance (NCDOI) reviews and approves proposed rate changes for all companies writing private passenger auto insurance. Insurers can charge less than the approved maximum but never more. This model ensures transparency and prevents disproportionate rate hikes after claims. When you shop quotes, you will see similar base rates; your personal driving record and accumulated points drive the premium variations.

How insurance points affect your premium

When you are involved in an at-fault collision or convicted of a moving violation, the accident or violation is assigned a number of insurance points according to state rules. Higher-severity incidents carry more points. Each point band corresponds to a percentage increase in your premium. For example, one point might trigger up to a 30% rise; twelve points could mean a 340% hike. Points remain on your record for three years, and insurers apply the highest increase allowed for the total points assessed.

North Carolina insurance point schedule

• 12 points: Manslaughter, impaired driving (DWI), hit-and-run causing injury or death
• 10 points: Reckless driving causing serious bodily injury, racing on highways
• 8 points: Driving while license revoked or suspended, aggressive driving
• 4 points: Reckless driving, passing a stopped school bus, high-speed violations (over 80 mph in a 70+ zone)
• 3 points: At-fault collision with bodily injury over $1,850 or property damage over $3,085
• 2 points: Improper passing, following too closely, at-fault collision with property damage $1,850–$3,085
• 1 point: Other moving violations, minor at-fault collisions under $1,850

Typical premium increases by point band

While each insurer sets its own percentages up to the state-approved maximum, the following guide reflects common increases you may encounter:

These increases typically apply to your next policy term and remain in effect for three years from the date of your claim or citation. Points from separate incidents accumulate, so multiple minor violations can equal a major rate hike.

No rate hike for very minor accidents

North Carolina law allows a one-point collision, minor at-fault accident with property damage under $1,850 and no injuries—to go without a premium increase if:

• You receive no traffic citation related to the accident
• No other household driver has a moving violation or at-fault accident in the past three years
• There are no bodily injuries

If you are issued a citation, the insurer applies the higher point value for either the violation or the accident, not both. In many cases, contesting a minor ticket or negotiating a reduced charge can prevent a points-based rate increase.

Strategies to limit premium increases

• Accident forgiveness: Some insurers offer accident forgiveness after a claim-free period; it prevents your first at-fault accident from raising rates. Check eligibility when you purchase or renew.
• Discounts: Maintain safe-driver discounts, bundle auto and home policies, enroll in defensive driving courses or install approved safety devices such as anti-theft systems.
• Shop annually: Even with points, insurers compete on price. Obtain quotes each year to find a carrier that offers lower surcharges for your driving record.
• Maintain clean records: Pay speeding tickets promptly, attend traffic school where allowed and ask lawyers to contest unfair citations to avoid unnecessary points.
• Higher deductibles: Raising your collision and comprehensive deductibles reduces your base premium, offsetting surcharge impacts if you file a claim.

Should you file a claim?

Deciding whether to file often depends on the damage amount versus your deductible and potential rate increase. If repair costs are below your deductible, out-of-pocket payment makes sense. For costs slightly above the deductible, calculate the hike: for a one-point claim, a 30% premium increase on a $1,000 annual policy equals $300 more per year, potentially outweighing the small claim payout. For larger claims—amounts far above the deductible—filing may still be prudent to avoid an unsafe vehicle.

How long do points and surcharges last?

Points remain on your NCDMV driving record for three years from the incident date. Insurers likewise apply surcharges for three years. After the point drops off your record, your premium reverts to the base rate (plus surcharges from any other remaining points). Switching insurers does not erase points; your entire driving history follows you.

North Carolina resources

• NC Department of Insurance – Auto Insurance Division: rate filings, approved surcharge schedules and consumer guides at ncdoi.gov/consumers/auto
• NC Division of Motor Vehicles: driving record requests and point explanations at ncdot.gov/dmv
• Insurance Quotes Comparison: use the NC DOI’s online tool to compare premiums from multiple insurers side by side.
• Local insurance agents: seek personalized advice on discounts, accident forgiveness and deductible options.
• NC Safe Driver Program: statewide defensive driving classes to remove points, available through authorized providers.

Auto insurance in North Carolina balances affordable base rates with deterrent surcharges for unsafe driving. By understanding how points translate into percentage increases, weighing the cost of claims against premium hikes and employing discounts or forgiveness options, you can minimize the financial impact of accidents and violations. Staying claim-free and ticket-free remains the surest way to keep premiums low, but when incidents occur, informed decisions and resourceful shopping let you control costs over the long term.