NEW MOTOR VEHICLE INSURANCE REGULATIONS

New motor vehicle insurance regulations, effective July 1, 2025, will have significant financial and legal consequences for North Carolina drivers. Changes to the regulations include: Increased minimum insurance coverage limits, extended surcharge period for inexperienced operators, extended surcharges for convictions that carry 4 or more Safe Driver Initiative Plan (SDIP) points, and extended “lookback” periods for convictions of speeding 10 mph or less and Prayers for Judgment Continued (PJC).

INCREASED MINIMUM COVERAGE LIMITS

Minimum insurance coverage and policy limits were increased and apply to all new or renewed policies on or after July 1, 2025:

EXTENDED PERIOD FOR INEXPERIENCED OPERATOR SURCHARGE

Previously, insurance providers applied a “surcharge” for drivers who had less than 3 years of driving experience. Insurance providers apply surcharges to new drivers because their lack of experience makes them a higher risk on the roads. This surcharge now extends to 8 years for drivers who are licensed on or after July 1, 2025. Years 1 – 3 will see higher rates and will progressively decrease during years 4 – 8 as the driver gains more experience.

CONVICTIONS OF FOUR OR MORE SAFE DRIVER INITIATIVE PLAN (SDIP) POINTS

Convictions for moving traffic violations carry an assigned number of insurance points based on the severity of the charge. The more serious the charge, the more insurance points will be assigned. Under the old and new law, insurance points would generally remain on a policy for a period of 3 policy years, regardless of the severity. However, under the new changes, convictions which carry four or more points (Speeding > 75 when speed is less than 70, Reckless Driving, DWI, Driving during revocation or suspension of license, speeding to elude, etc.) will now be applied to the insured’s policy premiums for 5 years.

“LOOKBACK PERIOD” FOR CONVICTIONS OF SPEEDING 10 MPH OR LESS & PRAYERS FOR JUDGMENT CONTINUED (PJC)

Prior to July 1, 2025, convictions of Speeding 10 mph or less would not result in the assignment of an insurance point, so long as the driver had a clean record during the three years immediately preceding the date of application or preparation of the policy renewal.

Similarly, the old law provided each “household” with one PJC within the three-year policy period. If any member of the policy received a second PJC within the 3 years following the entry of the first PJC, insurance points would be assigned for both charges.

This period of forgiveness is commonly referred to as a “lookback period.” Effective July 1, 2025, “lookback periods” for speeding 10 mph or less and PJCs now extend from a 3-year period to a 5-year period.

HOW CAN WE HELP?

These new changes to North Carolina motor vehicle insurance policies could literally cost you thousands of dollars in additional insurance premiums and the underlying motor vehicle conviction could result in suspension of your driver’s license. The Robinson Law Firm has nearly 40 years of experience helping drivers avoid the loss of their license and the payment of costly insurance premiums. We can help you navigate the complex regulations and avoid an increase in your insurance premium and the loss of your driver’s license.

If you have any questions about the new insurance laws or have received a traffic ticket, contact The Robinson Law Firm immediately to get the help you need and deserve to determine the best way to resolve your ticket to avoid adverse consequences.

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