Dui Auto Insurance: What You Need To Know

A DUI conviction can have serious consequences for your car insurance, from a rate increase to non-renewal of your policy. Your insurance company will likely find out about your DUI when you go to renew your policy, as they will review your driving record or obtain a motor vehicle report from the DMV. While there is no universal law requiring you to disclose a DUI conviction to your insurer, failing to do so could result in denied claims or accusations of insurance fraud.

Insurance companies consider DUI convictions a major violation, leading to significant rate increases. Your rates will be affected for 3-10 years, depending on your state and insurer. Some companies may even cancel or refuse to renew your policy. However, some states have laws prohibiting insurance companies from taking such actions solely due to a DUI conviction.

If you have a DUI, you may need to obtain an SR-22 or FR-44 form, which serves as proof of insurance for high-risk drivers. This will notify your insurer of your DUI. While finding insurance coverage after a DUI can be challenging, some companies, such as Progressive, specialise in providing coverage for high-risk drivers.

DUI convictions and insurance fraud

A DUI conviction can have a significant impact on insurance rates and can lead to insurance fraud charges if not properly disclosed. Insurance companies consider drivers with a DUI conviction high-risk, making them more likely to get into accidents and file insurance claims. As a result, insurance premiums for drivers with a DUI conviction can be much higher than those without one, with rate increases ranging from 40% to 131%. The exact impact on insurance rates will depend on factors such as the insurance provider, the driver's history, and the specifics of the DUI conviction.

Insurance companies typically find out about a DUI by checking a driver's Motor Vehicle Report (MVR) or contacting the state's Department of Motor Vehicles (DMV). While there is no universal law requiring drivers to disclose DUI convictions to their insurance company, it is generally advisable to do so. Failing to disclose a DUI conviction can result in insurance fraud charges and the denial of future claims.

In some states, drivers with a DUI conviction may be required to obtain SR-22 or FR-44 insurance, which is a type of high-risk insurance that can be more expensive. Additionally, insurance companies may cancel or refuse to renew a policy after a DUI conviction. Drivers should expect to pay higher insurance premiums for several years after a DUI conviction, and it is recommended that they shop around and compare quotes from multiple companies to find the best rates.

To avoid insurance fraud and potential legal consequences, it is crucial to be truthful and proactive when disclosing DUI convictions to insurance providers.

SR-22 or FR-44 forms for high-risk drivers

SR-22 and FR-44 forms are both types of financial responsibility filings required by some states for high-risk drivers, i.e., individuals convicted of certain driving offences. SR-22 is more commonly required in many states for drivers who have been convicted of offences such as DUI, driving without insurance, or multiple traffic violations.

SR-22 is not an actual "type" of insurance but a certificate of financial responsibility or insurance that proves a driver has the minimum required auto insurance coverage mandated by the state. This form is filed by the driver's insurance company directly with the state's Department of Motor Vehicles (DMV) and serves as a guarantee that the driver will maintain the required insurance coverage for a specified period. The SR-22 form is typically required if a driver has been caught driving without insurance or a valid license. Other reasons for requiring an SR-22 form include:

• DUI or DWI conviction
• Driving without enough insurance
• Too many at-fault accidents or violations
• Repeat offences in a short time frame (for example, three or more speeding tickets within six months)
• Not paying court-ordered child support
• Hardship license (issued for temporary driving needs, normally to and from work, because a license has been suspended or revoked)

The FR-44 form, on the other hand, is required only in Florida and Virginia. Like the SR-22, it's a form filed by the driver's insurance company to prove financial responsibility, but the key difference is in the minimum liability coverage amounts. FR-44 typically requires higher liability limits than SR-22, making it a more stringent requirement. The FR-44 is generally mandated for individuals convicted of more serious offences, such as DUIs with higher blood alcohol concentrations or repeat offences.

While both forms serve the same basic purpose of ensuring that high-risk drivers have adequate insurance coverage, the FR-44 imposes stricter requirements in terms of insurance coverage limits, reflecting the severity of the offences that led to its requirement.

Increased insurance rates

A DUI conviction will almost certainly lead to increased insurance rates. Insurance companies may consider drivers with a DUI history as riskier to insure, resulting in higher premiums. The increase in insurance rates can be significant, and you may be classified as a high-risk driver. The surcharge or increase in premium costs could cost you thousands of dollars over time. For instance, in California, a teenager with a DUI record may face an additional $40,000 in insurance expenses over 13 years. In Pennsylvania, a DUI could result in an extra $1,000 per year in insurance costs, assuming the policy is not cancelled.

The impact of a DUI on your insurance rates will depend on several factors, including your age, driving history, and the laws of your state. Some states have laws prohibiting insurance companies from cancelling policies or increasing rates solely due to a DUI conviction. The length of time since your DUI will also be a factor, with rates potentially decreasing once the DUI is removed from your record. Most states consider a DUI a major violation, and it can remain on your driving record for two to five years, or even longer in some cases.

When an insurance company discovers a DUI on your record, they may decide to cancel your policy or not renew it. They may also remove any "good driver" discounts you previously had. If your current insurance company decides not to renew your policy, you may need to look for high-risk coverage from another insurer. Obtaining quotes from multiple providers is recommended, as rates can vary significantly. Additionally, you may be required to obtain an SR-22 or FR-44 form, which serves as proof of insurance for high-risk drivers.

Insurance company refusal to renew policy

A DUI conviction can have serious implications for your auto insurance. While there is no legal obligation to disclose a DUI conviction to your insurance company, non-disclosure can have consequences. Insurance companies will typically find out about a DUI when you go to renew your policy, as they will review your driving record or obtain a motor vehicle report from the DMV.

Insurance companies can choose not to renew your policy at the end of a policy term if they consider you a riskier driver than when you first purchased your policy. A DUI conviction will almost certainly lead to this outcome, as it places you in the category of a high-risk driver. You may also find it more challenging to find an insurer willing to insure you, and you can expect a significant increase in your insurance rates.

If your insurance company does not renew your policy due to a DUI conviction, you will need to look for coverage from another insurer. You may need to investigate high-risk insurance companies or your state's auto insurance plan, which provides coverage for drivers who cannot obtain insurance through the regular market. While your rates will likely increase, getting quotes from multiple insurers can help you find the best option.

DUI and insurance rates by state

A DUI conviction can have a significant impact on your auto insurance rates, and the effects can vary depending on the state you live in. Here's a breakdown of how a DUI can affect your insurance rates across different states:

Michigan

Michigan already has the highest car insurance rates in the country, and a DUI conviction only adds to the cost. The average car insurance increase after a DUI in Michigan is 156%, making it one of the most expensive states for DUI insurance.

North Carolina

North Carolina has the highest average rate hike due to a DUI, with rates nearly quadrupling after a conviction. The average increase is 266%, but it's lower than the state-recommended increase of 340% under the Safe Driver Incentive Plan.

Alaska, Florida, and Missouri

These three states have the smallest average increase in insurance rates following a DUI, with a 33% rise in premiums.

California

In California, a DUI conviction can lead to rate increases of up to 131% for first-time offenders. Repeat DUI offenses can result in double or triple the original insurance premiums. Additionally, a DUI stays on your California driving record for a "lookback period" of 10 years, affecting your insurance rates for an extended period.

Other States

While specific data for all states is not available, it's important to note that insurance rates after a DUI can vary significantly across the country. The increase in premiums can range from 29% to 148% among different insurance companies. The length of time a DUI affects your rates also differs by state, typically lasting three to five years, but it can be longer in some cases.

It's important to note that insurance companies may also refuse coverage for DUI convictions, and you may need to look into high-risk insurance options. Additionally, factors such as age, gender, driving history, and the number of DUIs can further influence your insurance rates.

Frequently asked questions