Strategies To Reduce Auto Insurance Premiems Post-Dui

A DUI conviction can have serious consequences for your auto insurance, marking you as a high-risk driver in the eyes of insurance companies. Not only will your insurance rates increase, but you may also be required to file an SR-22 form and could even be denied coverage by some insurers. However, there are ways to mitigate the impact of a DUI on your auto insurance premiums. Firstly, shop around and compare rates from multiple insurance providers, as rates can vary significantly. Secondly, look for discounts and ask your insurer about any programmes they have for high-risk drivers, such as usage-based insurance or pay-per-mile policies. Additionally, you can increase your deductible to lower your premiums, improve your credit score, and avoid any further traffic violations or accidents. While it may take several years for your rates to return to normal, taking these steps can help you find cheaper DUI insurance.

Shop around for a new insurer

Shopping around for a new insurer is one of the best ways to find lower rates on car insurance after a DUI. While a DUI will affect your insurance rates for years, some insurance companies may deny you coverage immediately after a conviction, and then accept you after six months or a year. When your current policy renews, get quotes from a variety of insurance companies. You'll still pay high premiums, but you may be surprised by the different rates on offer.

In addition to the length of time since your DUI, insurance companies will also consider your age and driving history when calculating your premium. For example, if you've never had any accidents or speeding tickets, and your DUI is the only mark on your record, your rate likely won't increase as much.

USAA and Progressive have the cheapest car insurance rates after a DUI, but rates vary by state. Progressive, for example, only raises rates by a countrywide average of about 13% after one DUI. However, rates can vary significantly across different insurance providers, so it's recommended to shop around to find the best rate after a DUI.

Smaller regional companies, like Erie, Mercury and Auto-Owners, also tend to have more affordable rates.

Increase your deductible

One way to lower your auto insurance premiums after a DUI is to increase your deductible. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Typically, the higher your deductible, the lower your insurance premium. This is because you are taking on more of the financial risk yourself, so the insurance company can reduce your rates.

When you increase your deductible, you agree to pay more if you need to file a claim. This can be a good option if you have a clean driving record and are confident that you won't need to make a claim. It's important to make sure that you have enough savings to cover the higher deductible in case of an accident or other incident.

While increasing your deductible can help lower your premiums, it's not the only factor that insurance companies consider. They also look at your driving record, age, gender, and other factors. It's worth noting that a DUI will likely affect your insurance rates for several years, and the length of time can vary depending on your state and insurance company.

Additionally, insurance companies may have different policies on how they manage rate hikes following a DUI. Some may maintain a steady rate increase for as long as the DUI appears on your record, while others may gradually reduce your premiums each year until the conviction is no longer on your record.

It's always a good idea to shop around and compare rates from multiple insurance providers to find the best option for your situation. Some companies, like Progressive, specialize in insuring high-risk drivers and may offer more competitive rates. You can also ask about discounts, such as bundling your home and auto policies, to help lower your premiums further.

Ask about discounts

Asking about discounts is a great way to lower your auto insurance premiums after a DUI. Here are some tips to help you maximize your savings:

Know the Available Discounts

First, educate yourself on the various types of discounts offered by insurance companies. Common examples include good student discounts, accident-free discounts, good driver discounts, low mileage discounts, and loyalty discounts. Additionally, some companies offer discounts for bundling multiple policies or insuring multiple vehicles. Knowing what discounts are available will help you identify which ones you may be eligible for.

Be Proactive and Ask

Insurance agents or carriers may not always voluntarily offer information about all possible discounts. Therefore, it's essential to be proactive and ask about any available discounts. Contact your insurance company and inquire about all the discounts they provide. This simple step can help you save a significant amount on your premiums.

Compare Discounts Across Companies

When shopping for auto insurance, don't just focus on the base premium. Compare the discounts offered by different insurance companies. Some companies may offer larger discounts in certain areas than others. For example, one company might provide a more substantial discount for bundling home and auto insurance, while another might offer a higher discount for having a good driving record. By comparing discounts, you can identify which company offers the best overall deal for your specific situation.

Don't Neglect Small Discounts

While focusing on the big-ticket discounts, don't overlook the smaller ones. Even if a single discount shaves off only a few dollars from your premium, multiple small discounts can add up to substantial savings. Every little bit helps when trying to lower your auto insurance costs after a DUI.

Review Your Discounts Periodically

Discounts may change over time, and new ones may become available. Therefore, it's a good idea to review your discounts periodically, especially when your policy comes up for renewal. This proactive approach ensures that you're taking advantage of all the relevant discounts and helps you maintain the lowest possible premium.

Remember, insurance companies don't always advertise all their discounts, so it's up to you to inquire and stay informed. By being diligent and taking advantage of the available discounts, you can significantly reduce your auto insurance premiums, even after a DUI.

Avoid further violations

After a DUI, insurance companies will consider you a high-risk driver and your insurance rates will increase significantly. The best way to lower your insurance premiums is to avoid any further violations and keep your record clean. Here are some tips to help you avoid further violations:

• Obey all traffic laws and drive safely: This may seem obvious, but it is important to be extra vigilant about following all traffic rules and regulations. Obey speed limits, come to a complete stop at stop signs, use your turn signals, and be mindful of other drivers and pedestrians.
• Do not drive under the influence: If you are going to drink, plan ahead to have a designated driver or use public transportation. Do not get behind the wheel if you have been drinking alcohol or taking drugs.
• Be aware of your surroundings: Pay attention to other drivers on the road and be prepared to react to their actions. Keep a safe distance from the vehicle in front of you and be cautious when changing lanes or merging.
• Avoid distractions: Do not use your phone, eat, or engage in other distracting activities while driving. Keep your eyes on the road and your hands on the wheel at all times.
• Maintain your vehicle: Ensure your vehicle is in proper working condition. Regularly check your tyre pressure, lights, brakes, and fluid levels. If you notice any issues, have your vehicle serviced immediately.
• Know your route: Plan your route before getting behind the wheel, especially if you are driving in an unfamiliar area. Knowing your route can help you avoid last-minute lane changes or sudden turns that could increase your risk of an accident.
• Drive during daylight hours: If possible, avoid driving at night or in low-visibility conditions. Your risk of an accident is higher when it is dark or during inclement weather.
• Get plenty of rest: Drowsy driving can be just as dangerous as drunk driving. Make sure you are well-rested before getting behind the wheel, especially if you are embarking on a long journey.
• Consider a breathalyser ignition interlock device: These devices can be installed in your vehicle and require you to pass a breath test before starting the engine. This can help ensure that you do not drive with any trace of alcohol in your system.
• Seek professional help: If you struggle with substance abuse, consider seeking professional help or joining a support group. Addressing the underlying issues can help reduce the risk of repeat offences.

Remember, avoiding further violations is crucial to lowering your insurance premiums after a DUI. By following the above tips and driving with caution, you can help keep yourself and others safe on the road, while also working towards reducing your insurance costs in the long run.

Improve your credit score

Improving your credit score is an important step in lowering your auto insurance premiums after a DUI. Many auto insurers use specialised credit scores to help set premiums, offering lower premiums to individuals with higher scores. These scores are not identical to the credit scores used by lenders, but improving your credit score can boost your insurance-related scores as well. Check your credit score regularly to track your progress, and if your score improves, you may be offered lower auto insurance premiums.

In addition to improving your credit score, there are other steps you can take to lower your auto insurance premiums after a DUI. These include:

• Keeping a clean driving record: Avoiding additional accidents or citations for moving violations will help to reduce the insurance company's perception of you as a risky driver, which could lead to lower premiums.
• Comparison shopping: Shop around for insurance coverage, as rates can vary significantly across different insurance providers. Get quotes from multiple companies and compare their rates, coverage options, and discounts offered.
• Increasing your deductible: A higher deductible can help lower your insurance premiums.
• Taking a defensive driving course: Completing a defensive driving course can help lower your insurance rates.
• Avoiding other traffic violations: Additional traffic violations will only reinforce the insurance company's perception of you as a risky driver, leading to higher premiums.

Frequently asked questions