Why did my insurance premium go up after a no-fault accident, and can I contest the increase?

Recent Legal Update

Updated: March 2026

This article was corrected to reflect N.C. Gen. Stat. §§ 58-36-65 and 58-36-75. The earlier version described chargeability as depending on whether an insurer paid more than a general minimum claim threshold. Under the current statutes, an at-fault accident is classified according to whether it caused bodily injury or death and, for property-damage-only accidents, whether the damage was $2,300 or less, more than $2,300 but less than $3,850, or at least $3,850. The exemption for certain minor accidents applies only when all statutory conditions are met.

The dispute procedure was also clarified. An insured may first request an explanation and correction from the insurer, but a dispute over an insurer’s at-fault determination is governed by the North Carolina Rate Bureau process referenced in §§ 58-36-65(h) and 58-36-1(2). A Department of Insurance complaint may still provide consumer assistance. These corrections materially affect how readers evaluate and contest an accident surcharge.

Short Answer

In North Carolina, Safe Driver Incentive Plan points should not be added for an accident unless the insurer determines that an insured driver was at fault. If the accident was at fault, its classification depends on whether it caused bodily injury or death and, for property-damage-only accidents, the amount of damage. Premiums can still rise for other reasons, such as the loss of a discount, an approved rate change, or a rating error. You can contest an at-fault classification by requesting the basis and premium calculation from your insurer and seeking review through the North Carolina Rate Bureau process; you may also contact the North Carolina Department of Insurance for consumer assistance.

Understanding the Problem

You were rear-ended in North Carolina while your light was green, and the police report indicates that the other driver contributed to the crash. After the crash, your premium went up even though you were not at fault. The issue is: can your insurer raise your rate in this situation, and how do you get it corrected if the increase is based on a mistake?

Apply the Law

North Carolina uses a fault-based system for car crashes and a statewide Safe Driver Incentive Plan for premium surcharges and discounts. Accident points under that plan are tied to at-fault accidents. For property-damage-only accidents, N.C. Gen. Stat. § 58-36-75 currently defines a minor accident as one resulting in $2,300 or less in property damage, an intermediate accident as one resulting in more than $2,300 but less than $3,850 in property damage, and a major accident as one resulting in at least $3,850 in property damage. An at-fault accident involving bodily injury or death is classified as a major accident, although the Plan may assign different point values based on injury severity. A premium increase after a not-at-fault crash may instead result from a rating error, an approved general rate change, or the loss of a discount.

Key Requirements

At-fault classification: Accident points require a determination that an insured driver was at fault. If you dispute that determination and there has been no admission or adjudication of negligence, N.C. Gen. Stat. § 58-36-65(h) directs that the dispute be resolved through the process referenced in § 58-36-1(2).
Accident classification: Property-damage-only accidents are classified using the $2,300 and $3,850 damage levels in § 58-36-75. Bodily injury or death places an at-fault accident in the major category, subject to the Plan’s injury-severity point rules.
Minor-accident exemption: Even an at-fault minor accident is exempt from a surcharge and points only if the statutory requirements are satisfied, including no related moving violation, a qualifying household driving record, and the applicable continuous-coverage requirement.
Timing window: Accident surcharges under the Plan apply for three policy years.
Notice and rating information: If a policy loses a Plan safe-driver discount or is surcharged because of points, the insurer must provide notice stating the basis. Upon written request, the insurer must provide the amount of the premium increase attributable to the surcharge or loss of discount.
Non-accident factors: Premiums can also change because of approved rate changes or the loss of optional discounts. These should be reviewed to determine whether they were applied correctly.

What the Statutes Say

North Carolina Gen. Stat. § 58-36-65 (Safe Driver Incentive Plan) - governs the Plan, surcharge notices, at-fault disputes, rating periods, and related classifications.
North Carolina Gen. Stat. § 58-36-75 (At-fault accidents under the Safe Driver Incentive Plan) - defines major, intermediate, and minor at-fault accidents and states the conditions for the minor-accident exemption.
North Carolina Gen. Stat. § 58-36-1 (North Carolina Rate Bureau) - requires a reasonable process through which a person affected by a Bureau rate may be heard and allows insureds to request information about their rating and its calculation.

Analysis

Apply the Rule to the Facts: Being rear-ended while proceeding through a green light, together with a police report indicating that the other driver contributed to the crash, supports a not-at-fault classification. The police report is evidence, but the insurer makes its own initial rating determination. Ask the insurer to identify whether the increase is an accident surcharge, a loss of discount, or a general rate change. If it is an accident surcharge, request the stated basis, the amount attributable to the surcharge, and correction of any inaccurate at-fault classification.

Process & Timing

Who files: You. Where: Your insurer’s underwriting or rating department. What: Submit a written request for the basis of the surcharge or loss of discount, the amount of increased premium attributable to it, and the method used to calculate your rate. Include the police report, claim number, photographs, witness information, and relevant insurer correspondence. When: Do this as soon as you receive the renewal or billing notice—ideally before your renewal effective date.
If the insurer maintains that an insured driver was at fault and there has been no admission or adjudication of negligence, request review under the North Carolina Rate Bureau procedure referenced in N.C. Gen. Stat. §§ 58-36-65(h) and 58-36-1(2). Follow the Bureau’s current filing instructions and preserve proof of when your request was submitted.
You may also file a consumer complaint with the North Carolina Department of Insurance Consumer Services Division. Include the renewal or billing notice, the insurer’s surcharge explanation, your written correction request, the insurer’s response, and the police report. A consumer complaint can prompt regulatory review, but it does not replace the statutory Rate Bureau process for disputing an at-fault determination.
Confirm the outcome in writing. If the rating is corrected, request an updated declarations page, revised billing, and any refund or credit due.

Exceptions & Pitfalls

A low-dollar accident is not automatically exempt. The statutory minor-accident exemption applies only if all requirements in N.C. Gen. Stat. § 58-36-75(a1) are satisfied.
Police reports are useful evidence, but they do not by themselves control the insurer’s fault determination. Provide photographs, witness statements, traffic-signal evidence, and other available documentation.
Do not assume that every premium increase is an accident surcharge. Confirm whether the change resulted from Safe Driver Incentive Plan points, loss of a discount, a general rate change, different coverage, or another rating factor.
If a Plan surcharge or loss of discount applies, request the notice stating its basis and a written statement of the amount of increased premium attributable to it.
Keep everything in writing. Save notices, emails, letters, billing records, and proof of submission in case you seek Rate Bureau review or assistance from the Department of Insurance.

Conclusion

In North Carolina, Safe Driver Incentive Plan accident points depend first on an at-fault determination. If an accident is at fault, the applicable category depends on bodily injury or death and, for property-damage-only crashes, the statutory damage levels. Certain minor accidents are exempt only when all statutory conditions are met, and accident surcharges apply for three policy years. To contest an increase, request the basis and premium calculation from your insurer, submit evidence supporting a not-at-fault classification, and use the North Carolina Rate Bureau review process if the fault dispute remains unresolved. You may also seek consumer assistance from the Department of Insurance.