How Will a DUI or DWI Affect Your Insurance Premium?

Maintaining affordable car insurance is a significant issue for those charged with drunk driving, DUI, DWI, or any other alcohol-related driving offense. All 50 states and the District of Columbia have laws which define driving with a blood alcohol concentration (BAC) at or above a proscribed level, usually 0.08 percent, as a crime.

Following a DUI/DWI arrest or an administrative suspension from the Department of Motor Vehicles (DMV), many car insurance companies will consider you a "high-risk driver". Therefore, driver's may experience any of these actions: immediately cancelled insurance policies, insurance companies' refusal to renew the policy at the end of its term, or vastly increased premiums.

• How does your insurance company find out about your DUI conviction?
• What is an SR-22 Form, and When Do You Need One?
• The Decision Process - How Insurance Companies Proceed Following your DUI Conviction
• Should I Get a Lawyer?
• DUI/DWI Laws By State

How does your insurance company find out about your DUI conviction?

Your driving record shows if you have a DUI/DWI conviction. When you decide to purchase an auto insurance policy, the insurance company generally requests and reviews a copy of your driving record from the state Department of Motor Vehicles (DMV), on which the DUI conviction will be noted.

Your driving record may also be reviewed by your insurance company at renewal time to properly adjust your rates. If they discover that you have a DUI conviction, it is very likely that your insurance company will either terminate your policy or significantly increase your premium.

In the event that your insurance company continues your coverage, or you find a new insurance carrier to cover you after a DUI/DWI conviction, an SR-22 Form may need to be filed. Some car insurance companies don't offer SR-22 policies in which case your policy will not be renewed or cancelled.

What is an SR-22 Form, and When Do You Need One?

SR-22 generally refers to an insurance policy that is issued to provide proof that a driver has liability insurance. Many states require SR-22 as a condition of license reinstatement following an incident in which a driver's license was suspended. This includes DUI/DWI, as well as a range of other driving violations. Since a license suspension occurs following serious traffic violations and drivers are then considered higher risk, the SR-22 simply provides additional proof that an insurance company is covering the offender, and that the offender is financially responsible.

In many cases, the insurance company will file an SR-22 form on behalf of the driver. Once an SR-22 certificate is issued, the driver's license is eligible for reinstatement. While each state has a different policy, it is generally required that a driver carries the SR-22 for three to five years.

Since car insurance coverage and DUI laws vary by state, SR-22 policies are likewise handled differently depending on geography. New York and North Carolina do not require SR-22 filings at all. Delaware, Kentucky, Minnesota, New Mexico, Oklahoma and Pennsylvania do not require SR-22 policies; however, if a driver has an SR-22 and then moves to one of these states, they must continue to meet the requirements of the SR-22 as mandated by the state where the offense was committed. In states where an SR-22 policy is required, the insurance company providing the service may charge an administrative fee, usually in the range of $15 - $25. Even drivers who don't have a vehicle registered in their name may be required to get a non-owners policy. The filing will still be required by the DMV to satisfy the drivers' requirements of license reinstatement following a DUI conviction (or any other serious violation) in order to restore driving privileges.

The Decision Process - How Insurance Companies Proceed Following your DUI Conviction

Decisions regarding DUI offenders vary from company to company, and can be impacted by the laws of the state in which the offense was committed. Some insurance companies may cancel your policy or decide not to renew it upon expiration, while others may only increase your rates based on riskier driving behavior.

The duration that a DUI / DWI conviction stays on the driving record and impacts insurance rates depends on the laws of each state, but many states keep this information on driving records for 10 years.

The insurer reviews rate-increase decisions on a case-by-case basis. If a driver has a preferred policy and then receives a DUI conviction, some insurance companies may simply move the driver into their standard-policy for riskier drivers, charging higher rates. State Farm is an example of these companies.

Progressive, on the other hand, will not cancel or refuse to renew a policy following a DUI offense, but they will certainly increase premium rates.

Factors such as age, gender, driving history and your vehicle model are also considered when analyzing and adjusting post-DUI rates.

Should I Get a Lawyer?

Since the outcome of your drunk driving case can greatly affect your insurance rates, it is highly recommended to retain a skilled attorney to handle the case. An experienced DUI / DWI attorney will fight to minimize or even eliminate the consequences of a drunk driving arrest and press for the least-serious charge possible, which can directly affect your auto insurance rates.

In the event that you get into an accident while driving under the influence, it is critical to find a lawyer to help you navigate the court system, and help you determine whether the insurance company can exclude the incident from coverage.

DUI/DWI Laws by State

While the laws for each state are similar, the states do not treat a drunk driving conviction exactly the same. For example:

• In 41 states plus the District of Columbia, administrative license suspension or revocation follows a DUI conviction
• In 32 states, drivers with multiple offenses may have to forfeit their vehicles.
• In 43 states plus the District of Columbia, laws prohibit the driver, passenger, or both from possessing an open container of alcohol in the passenger compartment of a vehicle.

Many new DUI laws involve penalties that require ignition interlock devices for first time offenders. These devices analyze a driver's breath and disable the ignition if the driver has been drinking. Many of the same laws mandate increased penalties for drivers convicted of driving under the influence of alcohol or drugs multiple times.

Click here to view a full description of DUI laws by state.

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Tags:  DUI Laws · Insurance