How Much Does Car Insurance Cost After a DUI?
One of the largest price increases a person can incur on his car insurance is with a citation for driving under the influence of drugs or alcohol, commonly known as a DUI. It will almost always raise the premiums a person pays for insurance, though the precise amount can vary.
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Features
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Companies base the rates they charge for car insurance largely on the likelihood of a customer filing a claim against his policy, forcing the insurance company to pay out money. Customers deemed to be at greater risk of filing a claim usually pay more in premiums.
Significance
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Drivers cited for DUI are generally considered by insurance companies to have a high likelihood of filing a claim. Drivers with previous DUIs are considered more likely to be involved in an accident. According to Mothers Against Drunk Driving, more than half of all fatal crashes on a typical weekend are alcohol-related. To offset themselves against this risk, insurance companies charge higher rates for drivers with a DUI.
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Effects
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Instead of raising rates, many insurance companies cancel a driver's coverage after a DUI. According to Car Insurance Rates, most states allow companies to cancel a policy if the driver has been convicted of a DUI, even if the policy has already been paid for. Other states, however, require the company to wait for the policy to end before declining to renew it.
SR-22s
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An insurance company is likely to know about a DUI. Most states require that drivers convicted of a DUI obtain an SR-22 from their auto insurer to reinstate their license. The form certifies that the company knows the driver has been convicted of a DUI and is extending him coverage.
Expert Insight
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According to Insure.com, auto insurance companies use a set of variables when determining the price of premiums. For example, State Farm and Progressive usually do not cancel the policies of people convicted of DUIs, but they raise rates. The exact amount is determined on a case-by-case basis.
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