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Safe Driver Insurance Plan (SDIP)

The Safe Driver Insurance Plan (SDIP) is the point-based system that lowers rates for good drivers and increases rates for unsafe drivers. It also allows for the exchange of information on insurance claims.

The Safe Driver Insurance Plan (SDIP) sets the specific credits and surcharges that an insurance company may apply to your premium. Insurance companies are not required to use the SDIP to determine surcharges for at-fault accidents and traffic violations and apply credits for incident-free years. Instead, insurers may choose to develop their own merit rating plans or to use the SDIP.

How the SDIP affects you

The SDIP system of surcharges and credits may apply if:

  • your company has elected to use the SDIP as its merit rating plan, or

  • your insurance policy is written through the Massachusetts Automobile Insurance Plan (MAIP). Refer to the MAIP Consumer Guide.

4 insurance coverages are subject to the SDIP premium adjustment:

Compulsory coverages:

Bodily Injury to Others (Part 1)

 

Personal Injury Protection (Part 2)

 

Damage to Someone Else's Property (Part 4)

Optional coverage:

Collision (Part 7)  

 

Incentives

If your insurer uses the SDIP, the following incentives are given to ensure that drivers with clean driving records pay less for their auto insurance.

Excellent Driver Discount Plus (99):

The Merit Rating Board (MRB) will assign the Excellent Driver Discount Plus code to you if:

  1. you have 6 years of driving experience, and
  2. you have no surchargeable incidents in your 6-year policy experience period.

 

(Refer to SDIP definitions for an explanation of policy experience period and other terms associated with the Safe Driver Insurance Plan.)

Excellent Driver Discount (98):

The MRB will assign the Excellent Driver Discount code to you if:

  1. you are not eligible for the Excellent Driver Discount Plus (99) 6-year credit,
  2. you have at least 5 years of driving experience, and
  3. you have no surchargeable incidents in the 5 years immediately preceding your policy's effective date.

OR

  1. you have at least 5 years of driving experience,
  2. you have exactly 1 surchargeable incident in your 6-year policy experience period,
  3. this 1 surchargeable incident is a minor, non-criminal traffic law violation, and
  4. this 1 surchargeable incident has a surcharge date at least 3 years before your policy's effective date.

 

"Clean in 3" Provision

  • The value of surcharge points for each surchargeable incident is reduced by 1 point if:

  1. you have 3 or fewer surchargeable incidents on your driving record in the 5 years immediately preceding your policy's effective date,

  2. the most recent surcharge date is at least 3 years before your policy's effective date, and

  3. you have at least 3 years of driving experience.

     

    The surcharge points for any incident cannot be reduced below 0 (zero).

Other SDIP Point Provisions

No surcharge points are assigned for incidents in the sixth (oldest) year of your policy experience period.

No surcharge points are assigned to your first minor, non-criminal traffic law violation in the 5 years immediately preceding your policy's effective date (determined by the surcharge date) if it is the first traffic law violation in the five year period.

An operator with a revoked or invalid license is not eligible for SDIP incentives.

Check with your insurance company or agent to find out more about the merit rating plan your company is using to rate your auto insurance premium.

 

 

Additional Resources

Value of surcharge points assigned to surchargeable incidents

The number of surcharge points assigned to each surchargeable incident is determined by the incident classification defined in the Safe Driver Insurance Plan:

Minor Traffic Law Violation

2 points

Minor At-Fault Accident

3 points

Major At-Fault Accident

4 points

Major Traffic Law Violation

5 points

 

 The incident count is the number of surchargeable incidents. However, if more than one surcharge comes from one incident, it only counts as one surchargeable incident.

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