Felons And Auto Insurance: What's Possible?

In the United States, individuals with a criminal record often face challenges in obtaining car insurance, as their history can significantly impact their insurance rates and eligibility for coverage. Auto insurance companies typically categorise individuals with a felony as high-risk drivers, which may result in higher premiums or even denial of coverage. However, it's important to note that the impact of a criminal record on car insurance rates primarily depends on whether the violation relates to an individual's driving record.

Driving-related felonies, such as vehicular manslaughter, repeat DUIs, or hit-and-run offences, are considered more serious by insurance providers. These offences indicate a higher risk associated with insuring the individual, and insurance companies may view them as too risky to insure. As a result, individuals with driving-related felonies may struggle to find car insurance or face significantly higher premiums.

On the other hand, non-driving-related felonies may not directly impact car insurance rates, but they can still affect premiums indirectly. For example, if an individual's credit score drops during their imprisonment, it can result in higher insurance rates, as credit history is a factor in determining premiums.

While auto insurance companies can deny coverage to felons or charge higher rates, it is not impossible for individuals with a felony to obtain car insurance. Some insurance companies specialise in providing coverage for high-risk drivers, and individuals can compare quotes from different providers to find the most suitable option. Additionally, some states offer vehicle insurance plans or assigned risk plans to assist drivers in obtaining the minimum required auto insurance coverage.

How to get auto insurance with a felony DUI/DWI

If you have a felony DUI/DWI, you may find it difficult to get auto insurance coverage. You will be considered a high-risk driver, and insurance companies can deny coverage to high-risk drivers. However, there are still ways to obtain insurance. Here are some steps you can take to get auto insurance with a felony DUI/DWI:

• Shop around for insurance companies: Not all insurance companies will deny coverage to those with a felony DUI/DWI. Some companies, like Progressive, specialize in covering high-risk drivers and will be more likely to accept you. USAA also has cheap average rates after a DUI, but their policies are only available to military families. It's a good idea to compare quotes from multiple carriers to find the best rate.
• Look into state insurance plans or assigned risk plans: These are programs designed to assist drivers who have been denied coverage by insurance companies. State auto insurance plans share your risk between participating insurance companies, while assigned risk plans assign you to a specific company that will provide coverage.
• Obtain an SR-22 or FR-44 form: If necessary, your insurance company will file an SR-22 form on your behalf, which is required for high-risk drivers in most states. In Virginia and Florida, an FR-44 certificate is needed instead.
• Increase your deductible: A higher deductible will lower your premiums, resulting in cheaper insurance.
• Ask about discounts: Even with a DUI/DWI, you may still qualify for certain discounts, such as bundling your home and auto policies.
• Take a defensive driving course: This can help lower your insurance rates.
• Improve your driving record: Avoid any further traffic violations or accidents, as these will increase your risk profile.
• Improve your credit score: A higher credit score can lead to lower insurance rates.

What is high-risk auto insurance?

High-risk auto insurance is a type of insurance coverage that is required when an insurance company decides that you are more likely to get into an accident and file a claim than the average driver. This type of insurance is more expensive than standard insurance and may have coverage restrictions, such as limits on who is allowed to drive your car.

There are several factors that insurance companies take into account when determining whether someone is a high-risk driver. Some of these factors include age, driving history, and credit score. For example, drivers who are 65 and older, or who have a history of moving violations, DUI or DWI convictions, or other serious violations are often considered high-risk. Additionally, having a poor credit score or no credit history can also increase your risk profile.

High-risk auto insurance is typically required for drivers with a history of driving-related felonies, such as vehicular homicide, multiple DUI convictions, or hit-and-run incidents. These offences will show up on your Motor Vehicle Record (MVR) and can make it difficult to obtain affordable insurance.

It's important to note that insurance companies do not check criminal records when setting insurance rates or deciding whether to offer coverage. However, if a felony or misdemeanor appears on your MVR, it can impact your rates.

How to get auto insurance with a felony that is not driving-related

If you have a non-driving-related felony, you can still get auto insurance in nearly all cases. However, you may face indirect penalties that can make your premium more expensive.

Firstly, insurance companies do not run criminal background checks on applicants. However, they do run a Motor Vehicle Report (MVR) on all applicants, which will show the last 10 years of your driving history, including any traffic infractions, accidents, or crimes. Therefore, it is a good idea to run an MVR on yourself, as not all infractions or crimes may be listed, especially if they occurred in a different state. By checking your driver's history, you can know exactly what to disclose to insurance companies.

If you were imprisoned, your premium could be affected indirectly if one of the rating factors used to calculate your premium changed as a result. For example, if you did not maintain an active car insurance policy during your time in prison, insurance companies may see this lapse in coverage as an indicator of risk and increase your premium. Additionally, if your credit score dropped while you were incarcerated, this could also lead to higher premiums, as credit history is a major rating factor used to determine your premium.

If you have a felony on your record, it is recommended that you assess as many insurance companies as possible, including non-standard companies, which may be more likely to provide coverage. You can also consider "Assigned Risk Car Insurance", which covers drivers who have been denied insurance from multiple providers, although this is generally very expensive.

How to get auto insurance with a felony that is driving-related

If you have a driving-related felony, you may face serious challenges in obtaining auto insurance. Auto insurance companies consider individuals with driving-related felonies as high-risk drivers and may deny coverage or charge significantly higher premiums. Here are some steps and options to consider when seeking auto insurance with a driving-related felony:

Understand the Impact of a Driving-Related Felony:

Driving-related felonies, such as vehicular homicide, multiple DUIs, reckless driving, and certain hit-and-run offenses, will appear on your motor vehicle record (MVR) and significantly impact your insurance rates. These records can make it difficult to find affordable insurance or even result in policy denials.

Shop Around for Insurance Providers:

Start by comparing quotes from multiple insurance companies, including those that specialize in high-risk drivers. Some large insurance companies, like Allstate, may offer coverage to high-risk drivers, although at higher rates. It's important to be honest about your record to avoid future issues with your policy.

Consider High-Risk Auto Insurance:

If standard insurance companies deny you coverage or offer extremely high rates, you may need to explore high-risk auto insurance policies. These policies are designed for individuals with higher-risk profiles and are typically more expensive with certain coverage restrictions.

Contact State Insurance Providers:

Many states have vehicle insurance plans or "assigned risk plans" to assist drivers who struggle to obtain coverage. These programs are designed to provide at least the minimum required auto insurance coverage. You may need to meet certain requirements, such as proof of denied coverage from multiple providers, to qualify for these state-sponsored plans.

Be Prepared for Higher Rates:

Regardless of the insurance route you take, expect to pay higher rates due to your driving-related felony. Insurance companies view your record as an indicator of increased risk, and they will adjust their rates accordingly to mitigate potential losses.

Improve Your Overall Profile:

While your past record cannot be changed, focus on improving other aspects of your profile that insurance companies consider. Maintain a good credit score, avoid lapses in insurance coverage, and practice safe driving habits going forward. Over time, these factors can help offset some of the negative impacts of your felony conviction.

What are the consequences of driving without insurance?

Driving without insurance is illegal in most U.S. states and can result in various penalties, including fines, license suspension, vehicle impoundment, and even jail time. The specific consequences depend on the state in which the violation occurs and the number of prior offenses. Here are some common consequences of driving without insurance:

• Fines: The cost of a fine for driving without insurance varies by state, ranging from as little as $25 in Tennessee to as much as $5,000 in Massachusetts.
• License suspension: Many states will suspend your driver's license if you are caught driving without insurance. This punishment is often accompanied by a fine.
• Vehicle impoundment: In some cases, law enforcement may impound your vehicle if you are caught driving without insurance. This will result in additional impound and towing fees.
• Increased insurance rates: If you are caught driving without insurance, you may be designated as a high-risk driver by insurance companies, resulting in higher insurance rates.
• Difficulty obtaining insurance: A conviction for driving without insurance can make it more challenging and expensive to obtain insurance in the future, as you will be seen as a high-risk driver.
• Legal consequences: If you are involved in an accident while uninsured, you may face legal consequences, including lawsuits and significant financial liability for property damage and bodily injury claims.
• Restricted access to compensation: In some states, if you are involved in an accident and are uninsured, your ability to receive compensation for damages may be restricted, regardless of who is at fault.
• Points on your license: Driving without insurance can result in points being added to your driver's license, which can lead to increased insurance rates or additional penalties.
• Other fees: In addition to fines, you may also be responsible for court fees, reinstatement fees, and other costs associated with getting your license and vehicle registration reinstated.

Frequently asked questions