Ways to Save on Your Automobile Insurance

Safe Drive Insurance Plan

The Safe Driver Insurance Plan (SDIP) is a program created by state law that encourages safe driving with lower premiums for drivers who do not cause accidents or commit traffic violations and by ensuring that high-risk drivers pay a greater share of insurance costs. The SDIP premium adjustment is the last step in your premium calculation, after all rating factors and discounts have been applied.

New For 2006

Beginning with policies effective on or after January 1, 206, the Massachusetts SDIP is converting from a "step" to a "point" system. This change will make the system of discounts and surcharges easier to understand and comparable to what is in place in other states. More importantly, drivers in Massachusetts will have even greater control over their premium through safe driving.

Your Driving Record Affects Your Rates

• Traffic Violations - You also receive surcharge points if you are convicted of, or pay a fine for a traffic violation; or are assigned to a drug or alcohol education program. If you disagree with a traffic violation, you must appeal it through the court system. Traffic violations cannot be appealed to the Division of Insurance Board of Appeals or the Merit Rating Board.

Schedule Of Surcharge Points Are As Follows:

Surcharge Points Cost You Money And Increase Your Premium

Is there much of a difference between point levels? The differentials are established as part of the annual private passenger automobile rate setting process. The more points you have, the higher your premium. Points can accumulate quickly and each new incident increases the number of points on your record. Each point increases the premium paid for 4 coverages in your policy: Compulsory Bodily Injury (part 1), Personal Injury Protection (part 2), Damage to Someone Else's Property (part 4), and Collision (part 7). In 2006, the premium for drivers with less than 6 years of driving experience (Inexperienced Operators) is 7.5% above the base rate on parts 1, 2, 4 and 7 for each surcharge point on their driving record. The premium for drivers with 6 or more years of driving experience (Experienced Operators) is 15% above the base rate on parts 1, 2, 4, and 7 for each surcharge point.