OAI Discusses History of N.C. Auto Insurance Laws

In the newest FAQ on OnlineAutoInsurance.com, the writers discuss the origins of the North Carolina compulsory auto insurance law.

Online PR News – 19-November-2010 – – The first state to enact compulsory auto insurance was Massachusetts in 1927, and since then every other state, aside from New Hampshire, has done the same. As the writers at OnlineAutoInsurance.com explain in their newest FAQ, North Carolinians became subject to compulsory car coverage back in 1957.

Although this change brought the state in line with the growing trend throughout the rest of the country, the NC car insurance regulatory system remains unique in a big way: the existence of, and clarity provided by, the state’s Safe Driver Incentive Plan (SDIP).

The SDIP, which came into being along with the compulsory coverage law in 1957, lays out the insurance repercussions for being involved in specific types of traffic incidents. In no other state has the relationship between negative traffic events and their consequent premium hikes been defined more clearly. Drivers in most states have only the foggiest of conceptions as to what may happen to their premiums after an accident, as most insurers calculate premium changes by factoring these events into complex rating formulas. But North Carolina drivers, on the other hand, only need to access the SDIP resources made available through the state department’s website, figure out how many points are associated with a particular infraction or accident type, and then look at a table with corresponding percentages of rate increases.

Drivers who are convicted of driving on the wrong side of the road, for instance, can easily find out that this type of moving violation brings with it two SDIP points. Using the state-provided Consumer’s Guide to Automobile Insurance, he or she can then find out that having two SDIP points on a record will result of a premium increase of 45 percent.

Source: http://www.ncdoi.com/consumer/consumer_publications/automobile%20and%20vehicle/consumer%20guide%20to%20automobile%20insurance.pdf

To learn more about North Carolina coverage laws, readers can access the full FAQ or go to http://www.onlineautoinsurance.com/north-carolina/ where visitors will also be able to begin shopping for a policy by using the free quote-comparison generator.

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