Drunk Driving And Auto Insurance: What's The Verdict?

Driving under the influence of alcohol or drugs is illegal, but car insurance policies will usually cover accidents caused by drunk driving. However, this is not guaranteed and there are several consequences to be aware of. While insurers must meet the costs of third-party claims, they will often try to reclaim these costs from the policyholder. Policyholders themselves will not be able to claim for any injuries they suffer or for damage to their own vehicle. As a result of drunk driving, insurance providers will typically increase insurance rates significantly, and may even deny coverage in the future or cancel policies altogether.

Auto insurance rates may increase after a DUI

A DUI conviction can have serious consequences for your auto insurance rates. While your insurance company will typically cover the costs of an accident caused by a DUI, your rates will likely increase substantially afterward. The increase in auto insurance rates after a DUI can be significant, with some sources stating that rates may rise by up to 74% on average. This is because insurers consider drivers with a DUI conviction to be high-risk.

The specific impact on your insurance rates will depend on several factors, including your insurance company, your location, and your driving history. In some cases, your insurance company may even cancel your policy or refuse to renew it. If this happens, you may struggle to find a new policy at a reasonable price.

It's worth noting that the impact of a DUI on your insurance rates will typically last for several years. For example, in some states, a DUI will stay on your record for at least seven years, and your insurance premium will be affected for as long as it remains on your record.

To mitigate the impact of a DUI on your auto insurance rates, you may want to consider comparing quotes from multiple insurance companies and asking about discounts. You could also look into usage-based insurance programs that track your driving habits and prove you're a good driver.

Insurance companies may cancel your policy after a DUI

Insurance companies regard a DUI conviction as a significant red flag. This is because driving under the influence of drugs or alcohol is illegal and puts you, other drivers, and pedestrians at risk. Even if your insurer doesn't cancel your policy, you can expect to see your insurance rates skyrocket.

Policy cancellation

Whether or not an insurance company can cancel your policy after a DUI depends on the state you live in and the company itself. Some states don't allow insurers to cancel your coverage for a DUI, but in states where it is allowed, they probably will. If your insurance company does cancel your policy, you may struggle to find a new insurer, and if you do, the premiums will likely be very high.

Non-renewal

Even if your insurance company doesn't cancel your policy, they may choose not to renew it when it ends. Again, this depends on the company and the state you live in.

Other consequences

As well as policy cancellation or non-renewal, you may face other consequences after a DUI, including:

• A criminal record
• Fines
• Jail time
• A rise in your insurance premiums
• Difficulty finding a new insurer

DUI insurance rates vary by state

USAA and Progressive have the cheapest car insurance rates after a DUI, on average, but rates vary by state. Progressive's rates increase by $43 per month after a DUI, while State Farm's rise by $243, on average. In some states, a single DUI can more than double the price of car insurance. In North Carolina and Hawaii, a drunk driving ticket will triple insurance rates.

In Michigan, the average car insurance increase after a DUI is 156%. However, that's not the largest increase. In North Carolina, rates go up by 310% on average, but the base rates are much lower than in Michigan.

The impact of a DUI on your insurance also depends on your age. Insurance companies consider younger drivers to be riskier to insure because they have less experience behind the wheel. For example, insurance for an 18-year-old with a DUI costs an average of 47% more than coverage for an older driver.

The number of DUIs you've had will also affect your rates. A 30-year-old with four DUIs can expect full coverage rates to be 52% more expensive than rates for someone with one DUI.

The length of time a DUI stays on your record also varies by state. A DUI typically affects your insurance for three to five years, but it can stay on your record for up to ten years. In California, a DUI prevents you from receiving a 20% safe-driver discount for ten years from the date of your conviction.

DUI insurance is available from specialist providers

While drunk driving is illegal, your auto insurance policy will still cover you for damages or injuries to third parties. However, your insurance company may then try to reclaim these costs from you. You will not be able to claim for any injuries you suffer or for damage to your own vehicle.

Insurance companies view drunk driving as intentional conduct, and they may deny coverage for losses resulting from a DUI. If your insurer denies coverage, you may need to hire a lawyer to convince them to change their mind.

A DUI conviction will also make it harder to find affordable car insurance. Insurers class drunk drivers as high-risk and increase premiums accordingly. However, DUI insurance is available from specialist providers, and you can save money by shopping around and obtaining quotes from different companies. Some strategies to help lower your premium include maintaining a clean driving record, bundling your policies, increasing your deductible, and adjusting your payment method.

Some of the best auto insurance companies for drivers with a DUI include:

• State Farm: Known for reliable support, flexible payments, and expertise with high-risk drivers.
• Geico: Offers affordable rates for safe drivers, high customer satisfaction, and a user-friendly mobile app.
• Progressive: Provides cheap DUI insurance, a broad range of coverage options, and easy access to quotes online.

Insurance companies may try to deny alcohol-related claims

Drinking and driving is illegal, but your auto insurance will typically cover an accident caused by driving under the influence. However, insurance companies may try to deny alcohol-related claims by arguing that drinking and driving is intentional conduct. They may claim that you intentionally put yourself in a position to cause an accident by choosing to drink and drive. If they can prove that your actions were intentional, your claim may be denied.

It's important to note that while your insurance company will likely cover the costs of the accident, there are still significant consequences for a DUI accident. Your insurance rates will increase substantially, and your insurance company might cancel your policy or fail to renew it. You could also face legal penalties, fines, license suspension, and even jail time.

To avoid these consequences, it's crucial to never drive under the influence of drugs or alcohol. If your insurance claim is denied due to the determination that the drunk driving accident was deliberate, you may need to consult an attorney for guidance.

Frequently asked questions