Auto insurance rate increased due to inflation

 

Incentive Plan (SDIP) Points – Surcharge Will be Applied for Five Years.

Currently, when a driver is convicted of a moving traffic violation that results in insurance points, that driver’s policy receives a surcharge (which increases the policy premium) for three years. For certain convictions occurring on or after July 1, 2025 - specifically, convictions for which 4 or more insurance points are assigned under the SDIP, other than speeding in excess of the posted speed limit (speeding in excess of 75 mph when the posted speed limit is less than 70 mph and speeding in excess of 80 mph when the posted speed limit is 70 mph or greater)- the surcharge will be applied to the insured’s premium for 5 years (up from 3 years).

Convictions of Speeding 10 mph or Less and Prayers for Judgment Continued (PJCs) – Lookbacks Increase from Three to Five Years.

Currently, if a driver is convicted of the violation of speeding 10 mph or less over the posted speed limit2, that violation is waived for insurance purposes, meaning that no insurance points will be assigned and the premium will not increase IF the driver has no other conviction for a moving traffic violation, except for a PJC, during the three years preceding the date of application or the preparation of the renewal. This three years is the “lookback period.” For convictions for speeding 10 mph or less occurring after July 1, 2025, the lookback period increases from three to five years and applies to prior convictions occurring after that date.3

Similarly, if a driver receives a PJC for a moving traffic violation, that violation is waived for insurance purposes, meaning that no insurance points will be assigned and the premium will not increase IF the driver and no one else in the household have no other PJCs during the three-year lookback before the date of application or preparation of the renewal. For PJCs granted on or after July 1, 2025, the lookback period also increases from three to five years and applies to PJCs occurring after that date.4

The above information is a general explanation of the effects the changes may have on an insured’s premium.  There can be other factors that could affect an insured’s premium. Insureds should talk with their insurance companies or their insurance agents to learn the effect a conviction for a particular moving traffic violation will have on their insurance premiums.

1 S.L. 2023-133, as amended by S.L. 2024-29.

2 A conviction of speeding 10 mph or less over the speed limit does not include the offense of speeding in a school zone in excess of the posted school zone speed limit.

3 The Department is monitoring legislation that has been introduced and would clarify that the lookback period will remain 3 years for prior moving traffic violations occurring before July 1, 2025.

4 The Department is monitoring legislation that has been introduced and would clarify that the lookback period will remain 3 years for prior PJCs occurring before July 1, 2025.