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The Safe Driver Insurance Plan (SDIP) is a program mandated by state law that encourages safe driving by rewarding drivers who do not cause an accident, or incur a traffic law violation and by making sure that high-risk drivers pay a greater share of insurance costs. The SDIP premium adjustment is the last step in the rating process after all discounts and rating factors have been applied.
The following information is a general overview of the Safe Driver Insurance Plan and its impact on your insurance premium.
Step 35 Highest step. Maximum cost up to 140% more for certain premiums.
Step 15Starting or neutral step. No credit or surcharge. This is the starting step for all drivers. If the first traffic law violation in six years is minor, a surcharge is not applied, it does however, result in the loss of the incident-free year credit.
Step 9 Maximum savings. Up to 42% off liability coverage and 36% off collision coverage.
Step 16-35: Each surcharge step represents a 7% increase in Compulsory Bodily Injury (Part 1), Personal Injury Protection (Part 2), and Damage to Someone Else's Property (Part 4) and a 6% increase in Collision (Part 7).
Steps 9-14: Each credit step represents a 7% decrease in Compulsory Bodily Injury (Part 1), Personal Injury Protection (Part 2), and Damage to Someone Else's Property (Part 4) and a 6% decrease in Collision (Part 7).
WARNING
- Incident Surcharge Points
- Major Traffic Law Violation 5*
- Major At-Fault Accident 4*
- Minor At-Fault Accident 3*
- Minor Traffic Law Violation 2*
- *Plus loss of the incident-free year credit.
- Operators New to Massachusetts
As of January 1, 1999, if an application for insurance indicates that an operator new to Massachusetts was licensed outside of Massachusetts within the last six years or an operator is being added to an existing policy, the operator will be initially placed at SDIP step 15. If an operator's Motor Vehicle Report (MVR) is electronically available; the insurer will be responsible for obtaining it from the state or country where the operator is licensed. If an MVR is not electronically available, the operator may obtain an official driving record or a record from a previous insurer and submit it to the current insurer. The Merit Rating Board will determine the operator's SDIP step.
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