DUI's and Auto Insurance Rates

How Your Auto Insurance Company Will Respond and What Impact a DUI Will Have on Your Premium?

One of the most dangerous and costly moving violations involves driving while under the influence, or, DUI; In some states it’s called DWI for driving while intoxicated. Getting a DUI involves being convicted for having the presence of alcohol or drugs in one’s system while operating a motor vehicle. This sort of behavior is illegal and can result in death, injury, property damage, jail time, major fines, losing driving privileges, insurance cancellation and sky rocketing premiums.

Even fairly small amounts of booze or drugs in the body, while driving, can blunt one’s ability to operate a vehicle safely. Most states have adopted relatively low blood-alcohol content limits that can put a driver behind bars without them realizing that they’re impaired at all. According to the National Center for Statistics and Analysis, in the United States in 2007, an estimated 12,998 people were killed in alcohol-impaired driving crashes – a decline of 3.7% from 2006. If the possibility of killing or hurting someone as a result of drunk driving doesn’t discourage the operator from getting behind the wheel, there are other ramifications of this behavior that deserve serious consideration.

Every state has different laws and consequences related to being convicted of DUI, the same is true with insurance companies. After being convicted of a first DUI, most motor vehicle departments will suspend one’s driving privileges. Multiple DUI’s within a given time, depending on the circumstances, will often result in the total loss of one’s driver’s license. Regarding auto insurance, getting convicted with a DUI can be an expensive, time consuming, and, often, embarrassing occurrence that can hinder one’s freedom to drive and obtain affordable rates and decent coverage.  In California, the leading state for DUI fatalities and convictions, in order to get your license back, or be approved for a restricted license, you’ll have to obtain special, high-risk insurance and present proof of this coverage to the court. This type of proof is called an SR-22. In many states an SR-22 isn’t mandatory and, as a result, it’s possible that your insurance company won’t find out about it for years to come, if at all. A June 2002 study by the Insurance Research Council discovered that that as many as one-quarter of driving convictions never appear on motor vehicle records due to inconsistent communication between courts and motor vehicle departments. This is largely why more and more states are now requiring an SR-22 after the conviction.

If your insurance policy was active at the time of the DUI, and you’re required to show evidence of an SR-22, your company might provide this, for a cost, and they often reserve the right to drop you at the policy renewal. It all depends on the company and the state you live in. Most people don’t find this out until after the DUI has occurred; discussing this with your agent and understanding the motor vehicle code in your state, in advance, can be informative. If your policy is non-renewed, finding other insurance can be problematic because the coverage will typically be substantially more expensive and you’ll lose whatever loyalty discounts you‘re currently receiving. Often times, in order to get affordable insurance, people select minimal and inferior coverages to save money which can lead to big problems down the road if there’s a claim and your limits are insufficient.

Depending on the state you live in, a DUI conviction can remain on your driving record anywhere from five years to the rest of your life. In order to find new insurance for your car after a DUI, if you’re still allowed to drive, it’s usually best to go through a broker who deals with many different insurance companies to find the best rates.