How the Safe Driver Insurance Plan Point System Effects Car Insurance Rates
We all know that an at-fault accident or moving violation will most likely increase your car insurance rates. These are called surchargeable events, but not all are created equal.
The RMV breaks them down into several categories, including:
- Major Traffic Violations (5 SDIP Points)
- Minor Traffic Violations (2 SDIP Points)
- Major at-fault traffic accidents (4 SDIP Points)
- Minor at-fault traffic accidents (3 SDIP Points)
Massachusetts has created a Safe Drivers Insurance Plan (SDIP) that rewards safe drivers and penalizes unsafe drivers by applying surcharges to the licensed driver. Points will affect the following coverages; Compulsory coverages: Bodily Injury to Others (Part 1), Personal Injury Protection (Part 2), Damage to Someone Else’s Property (Part 4) and Optional Coverage: Collision (Part 7).
At-fault traffic accident surcharges are determined by the dollar amount paid out by the insurance company. Anything over $1000, up to $5,000, is a 3 SDIP point surcharge, and anything over $5,000 is a 4 SDIP point surcharge. Major and minor traffic violations are determined at the discretion of the Merit Rating Bureau. Breaking minor road rules, like speed or improper passing, incurs a 2 SDIP point surcharge. While major violations that cross the bounds from civil to criminal, such as operating under the influence, incurs a 5 SDIP point surcharge.
Traffic violations are ranked according to the seriousness of the offense. A minor traffic violation (ex. running a red light) is a civil offense that incurs 2 points on your record. A major traffic violation (ex. driving under the influence) can oftentimes be criminal and carry steeper penalties than a minor infraction. Along with 5 SDIP points, your license may be automatically suspended based on the severity of the infraction.
What Happens When Points Add Up?
If you accumulate too many points, the insurance carrier may drop you because you’re too much of a liability. This usually won’t happen in the form of a cancellation. Instead, they will decline to renew your policy when the policy period ends landing you in the state run pool known as MAIP (Massachusetts Automobile Insurance Plan).
Credits!
Yes there are credits applied for the best drivers! You can achieve the best step, an Excellent Driver Discount Plus (99). This will apply if you have at least 6 years of driving experience and have no surchargeable events during those 6 years. There is also Excellent Driver Discount (98). This is when you don’t qualify for Excellent Driver Discount Plus (99), you have at least 5 years of driving experience, there are no surchargeable events during those 5 years or you have 5 years of driving experience, you have exactly 1 surchargeable event in your 6 year experience period which is a minor, non-criminal traffic law violation and the incident occurred at least 3 years before your policy’s effective date.
There is also the “Clean in 3” provision. The value of assigned points is decreased by 1 if: you have 3 or fewer surchargeable events on your driving record in the 5 years immediately preceding your policy’s effective date, the most recent event is at least 3 years before your policy effective date, and you have at least 3 years of driving experience.
Other SDIP Point Provisions
- No points are assessed for incidents in the sixth (oldest) year of your policy experience period.
- No surcharges are assessed to your first minor, non-criminal traffic law violation in the 5 years immediately preceding your policy’s effect date (determined by the surcharge date) if it is the first traffic violation in the 5 year period.
- An operator with a revoked or invalid license is not eligible for SDIP incentives.
Choosing an independent agency as opposed to a carrier offers a safety net when this happens. Instead of bouncing from carrier to carrier, you entrust in your agent who has access to multiple carriers to find the best option to fit your situation and needs.
If you need to evaluate your car insurance rates, call or text H&K Insurance at 617-612-6500 or request a free auto quote with our quick form below.
