Many people associate DWIs with the obvious criminal penalties that come with a guilty verdict, such as jail time, probation, and monetary fines. However, a DWI can impact your life in many other ways, including those that may not be immediately apparent. Critically, one of the collateral consequences of a DWI conviction in North Carolina is increased car insurance premiums. While a DWI and car insurance hike go hand-in-hand, it’s crucial to have a skilled criminal defense attorney by your side who can work to minimize the immediate penalties and the long-term financial consequences of a conviction.

Key Takeaways

How Do DWIs Impact Car Insurance Points?

In North Carolina, there are two distinct points systems for drivers: license points and insurance points. While these are often confused, it’s important to understand the difference and how your insurance rates are impacted. Specifically, license points are assessed by the North Carolina DMV and can impact your legal ability to drive if you have acquired 12 or more within a three year period.

In contrast, insurance points are imposed by insurance companies based on the North Carolina Safe Driver Incentive Plan (SDIP). They affect the cost associated with your auto insurance. Just one DWI conviction can result in a steep premium increase. Notably a driver may see an insurance hike for five years or longer, depending upon the insurance company’s underwriting policies.

How Many Insurance Points Does a DWI Add to Your Record in North Carolina?

A DWI classifies a driver as “high risk” with the insurance companies and adds 12 insurance points to a driver’s insurance record under the SDIP. This is the maximum number of points possible per rating period and typically results in the highest insurance surcharge. Generally, drivers with a DWI on their record see a 340% increase in premiums. Since it is a misdemeanor to drive without insurance in North Carolina, such an increase can often result in being prevented from driving at all, regardless of license reinstatement.

How Long Do Insurance Companies Look at Your Driving Record?

Not only does the court have a DWI lookback period, but insurance companies do as well. DWI-related insurance points can remain on your record in North Carolina for up to five years. This means elevated premiums would ultimately affect you for this period of time. However, some insurers may review driving history for major infractions such as DWIs for up to ten years.

What is an DL-123 Form and is it Required After a DWI?

A DL-123 form is a form that the insurance company issues to show that a driver carries the minimum insurance coverage of $30,000 per person and $60,000 per accident for bodily injury. Not to be confused with the SR-22 form which is used in other states, the DL-123 form is required in North Carolina after a DWI to obtain a limited driving privilege or for license reinstatement.

The DL-123 form is not insurance. Rather, it serves as a certificate of financial responsibility and is valid for 30 days from the date of issuance.

When Does a DWI Appear on Your Insurance Record?

When it comes to DWIs and car insurance points, it’s essential to understand when the conviction will appear on your insurance record. Although a DWI typically appears on your DMV driving record within 24 hours of the charge or conviction, it generally impacts an insurance record at the next policy renewal. The insurance company may also discover the DWI at the time an DL-123 form is requested to obtain limited driving privileges.

What are the Insurance Consequences Beyond Rate Increases?

In some cases, a DWI can result in more than increased premiums. Some insurance carriers may choose not to renew a driver’s policy at all after a DWI. This can force a driver to obtain coverage through non-standard insurance carriers that specialize in high-risk insurance. These policies are often more expensive, impose stricter terms, and have higher deductibles.

Contact an Experienced North Carolina DWI Attorney

Because a DWI can affect your life, driving privileges, and financial stability for years to come, it’s vital to take the necessary steps to fight the charges against you. The Johnston County DWI attorneys at Reece & Reece, Attorneys at Law are committed to providing skilled representation to clients facing DWI offenses in North Carolina. Call (919) 300-1249 or contact us online to schedule a consultation and learn how we can help.