The Impact Of A Dui On Auto Insurance: What You Need To Know

Driving under the influence (DUI) has serious consequences, including driving suspensions, fines, mandatory classes, and even permanent license revocation in the case of multiple arrests. A DUI will also significantly impact your auto insurance, with rates increasing by up to 84% on average, which equates to $138 more per month for full coverage insurance. The impact of a DUI on insurance rates can last for several years, and insurance companies may even refuse to cover individuals with a DUI on their record.

Insurance companies may terminate your policy

If you have a DUI conviction, most insurance companies will terminate your policy. This is because insurance companies believe you are more likely to file a claim in the future. You will then have to obtain auto insurance through a high-risk market, which will be significantly more expensive.

In Canada, there are a handful of companies that will merely raise their rates if they find out you've received a DUI charge, instead of refusing to renew your policy altogether. For example, Economical Insurance, based in Waterloo, Ontario, will continue to cover you but will raise your rates. However, they may start calculating your rate using a rating system reserved for people with DUIs, which will result in higher rates.

If you are convicted of impaired driving in Canada, you will have a criminal record. This conviction will show up in a police background check that a potential employer might run. It will also be visible to landlords, who may decide not to rent to you based on your DUI conviction.

In Ontario, drivers can expect to see their premiums increase by between $5,000 and $8,000 annually following a DUI conviction. In Quebec, Manitoba, Saskatchewan, and British Columbia, drivers could pay as much as $1,600 more per year, on the condition that they install an interlock device on their vehicle to prevent them from driving while under the influence.

You will need to obtain insurance through the high-risk market

If you have a DUI on your record, you will likely have to obtain insurance through the high-risk market. This is because a DUI indicates that you are a high-risk driver, and many insurance companies will not cover you. In Canada, driving while intoxicated is a serious offence, and the legal penalties are severe. These can include driving suspensions, expensive fines, and the requirement to take mandatory classes.

In Ontario, for example, drivers with a DUI can expect to see their premiums increase by between $5,000 and $8,000 annually. The majority of auto insurers in Ontario won't take on a new client or even renew an existing client if they have a DUI conviction. This means that drivers with a DUI will have to turn to "non-standard auto" companies that cater to higher-risk drivers. These companies will add a significant surcharge on top of regular premiums. While surcharges vary, a common industry standard has been an additional 50% of your regular rate. For example, if you previously paid $1,400 in insurance premiums, you could now be paying around $2,100.

In Quebec, Manitoba, Saskatchewan, and British Columbia, drivers could pay as much as $1,600 more per year following a DUI conviction. This is on the condition that they install an interlock device on their vehicle, which prevents them from driving while intoxicated.

The rest of Canada has something called the Facility Association for drivers who are deemed too risky for traditional companies. While this is a more expensive option, it is not required to supply a policy and may place tougher restrictions on the driver.

There are specific insurers that specialize in high-risk drivers, and a well-informed insurance professional can help you find one. It is important to compare quotes from multiple companies to get the lowest rate possible.

A DUI will stay on your record for at least three years

A DUI conviction will have long-lasting consequences for your driving record and auto insurance. In Canada, a DUI will stay on your record for at least three years, and the length of time your licence was suspended will be added to this. This means that you can expect to pay higher auto insurance rates for at least three years, and possibly longer. In Ontario, a DUI conviction will remain on your record for three years, and a licence suspension will be noted for up to six years. This means that, in Ontario, you will need to disclose any licence suspensions for six years after a DUI conviction.

In the US, a DUI typically affects your insurance for three to five years, depending on the state. However, in California, a DUI will stay on your record for ten years, and you will not be eligible for a good driver discount during this time.

The impact of a DUI on your insurance rates will depend on a number of factors, including your age, gender, insurance company, and the time since your conviction. Insurance companies will consider your driving history over the past three to five years when calculating your insurance quote. The number of DUIs you have had in this time will also affect your rates. For example, a 30-year-old with four DUIs can expect their insurance rates to be 52% more expensive than someone with just one DUI.

A DUI conviction may affect your job prospects

A DUI conviction can have a significant impact on your job prospects. Here are some ways in which a DUI may affect your employment opportunities:

• Background checks: Many employers conduct background checks as part of their hiring process, which can include reviewing criminal records. A DUI conviction may appear on your record and could potentially disqualify you from certain job opportunities. The length of time that a DUI stays on your criminal record varies by state, but in some cases, it may remain there indefinitely.
• Employment requirements: Certain jobs have specific requirements that exclude individuals with a DUI conviction. For example, jobs that involve driving may have strict policies against hiring individuals with a history of impaired driving. This could limit your options in fields such as transportation, delivery, or logistics.
• Security clearances: If you are applying for a job that requires a security clearance, a DUI conviction could be a red flag. This is particularly true for positions in government, law enforcement, or sensitive industries such as defence or aerospace. A DUI may not necessarily disqualify you, but it could be a factor considered during the evaluation process.
• Professional licensing: Some professions require professional licenses, and a DUI conviction could impact your ability to obtain or maintain these licenses. This is especially relevant for jobs in healthcare, law, education, or finance, where maintaining a clean record is often essential for licensing requirements.
• Reputation and character assessment: Employers often consider an applicant's reputation and character during the hiring process. A DUI conviction may raise concerns about an individual's judgment, reliability, or trustworthiness. This could be a factor in industries where public perception or customer interaction is important, such as sales, marketing, or customer service.

It is important to note that the impact of a DUI on your job prospects is not just financial. It can also affect your long-term career trajectory, professional relationships, and overall employability. The consequences of a DUI conviction can vary depending on the industry, company policies, and the specific circumstances of the case. In some cases, completing a diversion program, seeking treatment, or demonstrating rehabilitation can help mitigate the impact of a DUI on your job prospects.

Your insurance rates will increase

How a DUI Affects Your Auto Insurance Rates

If you have a DUI on your record, your auto insurance rates will increase. The increase is due to insurance companies believing you are more likely to file a claim in the future. The exact amount your insurance rates will increase depends on several factors, including your age, gender, insurance company, the number of DUIs you have, and how recently you got a ticket.

Rate Increases

On average, insurance rates increase by 84% after a DUI, which equates to around $138 more per month for full-coverage insurance. However, this varies by company and state. For example, Progressive's rates only increase by $43 per month, while State Farm's rise by $243, on average. In some states, like North Carolina, a DUI more than triples insurance rates.

Length of Impact

A DUI will impact your insurance rates for several years, typically between three and five years. However, it will remain on your driving record for much longer, up to ten years in some cases. During this time, you may need to keep an SR-22 or FR-44 form on file, which proves that your insurance limits meet state requirements.

High-Risk Insurance

If your insurance company decides to terminate your policy after a DUI, you will need to obtain insurance through a high-risk market, which will result in significantly higher premiums. Some companies specialize in high-risk drivers and offer driving record rehabilitation programs to help lower costs over time.

Frequently asked questions