Does a Felony Affect Car Insurance?

A felony conviction can introduce complexities when seeking or maintaining car insurance. Insurance providers evaluate various factors to assess the risk associated with insuring an individual. A felony, particularly one related to driving, can signal an elevated risk profile, influencing an insurer’s decision-making process. The nature of this impact is not uniform, varying based on the specifics of the conviction and the policies of different insurance carriers.

How a Felony Can Affect Your Car Insurance

A felony conviction often leads to increased car insurance premiums. Insurers perceive individuals with such convictions as higher risk, suggesting a greater likelihood of future claims and prompting them to adjust rates upward.

Insurers may also deny a new policy or choose not to renew an existing one once a felony conviction is discovered. Some states permit non-renewal if a conviction suggests a driver might endanger others.

Even if coverage is available, it might be limited to basic liability, making it difficult to obtain comprehensive protection like collision or comprehensive coverage.

It is important to disclose felony convictions to insurance providers, as non-disclosure can lead to policy cancellation or denial of future claims. Lying on an insurance application can be considered insurance fraud, which can result in coverage refusal.

Driving-related offenses like driving under the influence (DUI) or reckless driving directly impact insurance due to their appearance on a motor vehicle record. Non-driving related felonies can also have an indirect effect. For instance, a period of incarceration might lead to a lapse in insurance coverage, which can result in significantly higher premiums upon reapplication. Additionally, if a felony conviction indirectly affects an individual’s credit score, this can also influence car insurance rates, as credit is a common rating factor for insurers.

Key Factors Determining the Effect

The type of felony significantly influences its impact. Driving-related felonies, such as vehicular homicide, felony DUI, hit-and-run, or insurance fraud, have the most severe implications as they directly reflect driving behavior. These offenses are typically recorded on a motor vehicle report (MVR), which insurers review when setting rates. Non-driving related felonies like robbery or assault generally do not appear on a driving record and may not directly affect rates.

The time elapsed since the conviction also plays a role. Insurers often consider older convictions less relevant than recent ones, with look-back periods for driving records typically ranging from three to seven years. While minor violations may fall off a record, serious criminal charges can persist longer or permanently. State regulations vary regarding an insurer’s ability to use criminal records in underwriting decisions.

Each insurance company maintains its own underwriting guidelines, meaning some may be more lenient or stricter than others when assessing risk. A clean driving record maintained after a conviction can help mitigate negative effects, demonstrating a commitment to safe driving. Continuous safe driving over time can signify a reduced risk to insurers, potentially leading to more favorable rates.

Strategies for Obtaining Car Insurance

Individuals with felony convictions should shop around extensively, as underwriting criteria vary among providers. Obtain multiple quotes to find companies willing to offer coverage and at what rates. Some major insurance companies may offer policies to high-risk drivers, though at significantly higher premiums.

Specialized high-risk insurance providers cater to drivers who struggle to secure policies in the standard market. While typically more expensive, these policies offer a viable pathway to obtaining necessary coverage. These providers assess risk factors that standard insurers might decline.

For those unable to find coverage through traditional or high-risk providers, state-mandated programs like Assigned Risk Pools or Residual Market Plans serve as a last resort. These programs ensure nearly any driver can obtain minimum required liability insurance. While they guarantee coverage, policies are generally more expensive and offer only limited coverage. To qualify, individuals may need to demonstrate denial by multiple private insurers.

Maintaining a spotless driving record after a conviction is a practical step to improve future insurance prospects and potentially lead to lower premiums. Working with an independent insurance broker can also be beneficial. Brokers have access to multiple carriers and experience placing difficult-to-insure clients, helping navigate the market to find suitable coverage.