Safe Driver Insurance Plan (SDIP)

The Safe Driver Insurance Plan (SDIP) is Massachusetts' merit rating system that adjusts auto insurance premiums based on driving record.

How SDIP Works

Purpose

The SDIP:

• Rewards safe drivers with lower premiums
• Penalizes at-fault drivers and traffic violators with surcharges
• Incentivizes safe driving behavior
• Reflects actual driving risk in premiums

Surcharge Points

Surchargeable Incidents result in points added to your insurance:

Surcharge Duration

• Surcharges remain for 6 years from incident date
• Cannot be removed early
• Accumulate over the 6-year period
• Drop off after 6 years automatically

Exam Tip: SDIP surcharges last for 6 years from the date of the incident. An at-fault accident results in 4 surcharge points that affect premiums for 6 years.

At-Fault Accidents

What Makes an Accident At-Fault?

An accident is surchargeable when:

• You are more than 50% at fault
• Damage exceeds $1,000 threshold
• Accident reported to insurance company
• Determined by insurance company

Not At-Fault

No surcharge if:

• You are 50% or less at fault
• Another driver 100% at fault
• Damage below $1,000
• Hit by uninsured motorist
• Hit while legally parked

Accident Surcharge Points

Traffic Violations

Major Violations (5 Points)

Major traffic violations carry 5 surcharge points:

• Operating under the influence (OUI/DUI)
• Reckless driving
• Leaving scene of accident (hit-and-run)
• Driving to endanger
• Operating after suspension/revocation
• Motor vehicle homicide

Minor Violations (2 Points)

Minor traffic violations carry 2 surcharge points:

• Speeding
• Failure to stop at red light
• Failure to yield
• Following too closely
• Improper lane change
• Texting while driving
• Other moving violations

Non-Surchargeable Violations

No SDIP surcharge for:

• Parking tickets
• Equipment violations (broken tail light)
• Registration violations
• Inspection violations
• Non-moving violations

Exam Tip: Major violations (OUI, reckless driving, hit-and-run) carry 5 points. Minor violations (speeding, red light) carry 2 points. Equipment and parking violations are not surchargeable.

SDIP Surcharge Impact

How Surcharges Affect Premiums

Each surcharge point increases premiums by a percentage:

Typical Surcharge Percentages:

• First point: ~15-30% increase
• Additional points: Cumulative increases
• Maximum: Can double or triple base premium
• Varies by insurer

Example:

• Base premium: $1,200
• At-fault accident: 4 points
• Estimated increase: ~40-60%
• New premium: $1,680-$1,920

Multiple Incidents

Surcharge points accumulate:

Example:

• One at-fault accident: 4 points
• Two speeding tickets: 2 points each = 4 points
• Total: 8 surcharge points over 6 years

This could result in 60-100% premium increase.

SDIP Appeals

Appeal Process

Drivers can appeal surcharges:

Grounds for Appeal:

• Dispute fault determination
• Provide evidence you were not at fault
• Show errors in surcharge application
• Prove extenuating circumstances

Appeal Process:

1. Request hearing with insurance company
2. Provide documentation (police report, witness statements, photos)
3. Insurance company reviews appeal
4. Decision rendered (typically within 30 days)
5. Further appeal to Division of Insurance if denied

Required Documentation

Strong appeal includes:

• Police accident report
• Witness statements
• Photos of accident scene
• Repair estimates
• Medical records (if applicable)

Maintaining Good SDIP Standing

Safe Driving Tips

To avoid SDIP surcharges:

• Drive defensively and safely
• Obey all traffic laws
• Avoid distractions (phone, texting)
• Maintain safe following distance
• Never drive impaired
• Take defensive driving courses

Impact of Clean Record

Clean record benefits:

• Base premium rates (no surcharges)
• Eligibility for good driver discounts
• Lower overall insurance costs
• More insurer options
• Easier to get coverage

Exam Tip: Massachusetts insurers may offer additional good driver discounts beyond SDIP base rates for drivers with no incidents over 3-5 years. SDIP sets minimum standards, but insurers can offer better rates.

SDIP and Auto Insurance Shopping

Impact on Insurance Availability

High SDIP surcharge points may:

• Limit insurer options
• Require non-standard insurers
• Increase premiums significantly
• Require proof of financial responsibility

Shopping with Surcharges

Tips:

• Compare multiple insurers (surcharge impact varies)
• Consider increasing deductibles
• Bundle with homeowners insurance
• Take defensive driving courses
• Install safety devices
• Ask about accident forgiveness programs

Massachusetts Auto Insurance Assigned Risk Pool

When Needed

If you cannot obtain voluntary insurance due to:

• Multiple surcharge points
• License suspensions
• DUI/OUI convictions
• Payment history issues

How It Works

Massachusetts Auto Insurance Plan (MAIP):

• Residual market for high-risk drivers
• Insurers assigned to provide coverage
• Higher premiums than voluntary market
• Compulsory coverage only (minimum limits)
• Goal: Return to voluntary market ASAP

Exam Tip: The Massachusetts Auto Insurance Plan (MAIP) serves as the assigned risk pool for drivers who cannot obtain coverage in the voluntary market. It's also called the residual market and provides compulsory coverage at higher premiums.