North Carolina’s New Auto Insurance Law:
Inexperienced Operators and Major Violations
What You Need to Know Before July 1, 2025
Major Changes to Teen Drivers and Auto Violations Effective July 1, 2025
In the last blog post we focused on major changes to insurance limits and coverage that are set to take effect on July 1st, 2025, mandated by SB452. In this blog post I want to look at further changes mandated by SB452 that will affect inexperienced operators (most commonly, teen drivers) and the calculation of major violations. As with the updates previously discussed, these changes are set to take effect July 1st .
Extended Inexperienced Operator Period
Starting July 1, 2025, drivers obtaining their first license will be classified as “inexperienced operators” for eight years, an increase from the current three-year period. This classification is associated with higher insurance premiums during the allotted period due to the lack of experience of the driver. However, drivers who maintain a clean record—free of at-fault accidents and convictions—for three consecutive years may become eligible for a safe driver discount. It’s important to note that any at-fault accidents or convictions will reset this eligibility period, and the discount opportunity ends once the driver reaches eight years of licensure.
Changes to Traffic Violation Surcharge Durations
For traffic violations occurring on or after July 1, 2025, the surcharge period for major convictions will extend from three to five years. Major convictions include offenses that assign four or more points under the Safe Driver Incentive Plan (SDIP), such as driving while impaired (DWI), hit-and-run, driving with a revoked license, and speeding in excess of 75 mph. Minor violations, including most speeding tickets, will continue to carry a surcharge period of three years.
Key Takeaways
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Inexperienced Operator Classification: Applies to drivers licensed on or after July 1, 2025, lasting eight years.
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Safe Driver Discount: Available after three years of clean driving; ineligibility triggered by any at-fault accident or conviction.
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Major Conviction Surcharges: Extended to five years for violations occurring on or after July 1, 2025.
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Minor Violation Surcharges: Remain at three years.
Consult a Trusted Advisor at Overbay Insurance:
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Prior to Your Teen Getting Their License: Not only do we have to provide you with a specific form for the DMV so that your teen can get their license, but more importantly, we are happy to go over methods to minimize the premium impact of adding an inexperienced operator to your coverage.
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Anytime You Receive a Traffic Violation: Many are hesitant to reach out following a traffic violation, whether from embarrassment or out of the false hope that the insurance company might miss it. Please reach out to us should you ever have a traffic violation so that we can help you address it in a way that minimizes the impact of the violation on your auto premium.
