What Does a DUI Do to Your Insurance?

A conviction for driving under the influence (DUI) carries significant consequences that extend far beyond initial legal penalties. Such a conviction immediately impacts an individual’s driving record, often resulting in license suspension or revocation. The financial repercussions are substantial, encompassing not only fines and court costs but also potentially higher legal fees and mandatory program expenses. These outcomes collectively represent a serious disruption to a person’s daily life and financial stability.

What Happens to Your Current Policy

A DUI conviction triggers immediate actions from your existing auto insurance provider. Insurers view a driver with a DUI as a substantially elevated risk, leading to various policy responses.

Upon learning of a DUI conviction, an insurance company might choose to cancel the policy outright. This cancellation can occur even mid-term, leaving the driver without coverage. Alternatively, the insurer may decide not to renew the policy once its current term expires.

In some cases, the insurer might allow the policy to continue but implement significant rate adjustments upon renewal. These adjustments reflect the insurer’s updated risk assessment, making coverage considerably more expensive.

Understanding Future Premium Increases

A DUI conviction is a primary factor leading to substantial increases in auto insurance premiums. Insurers classify drivers with a DUI as high-risk, resulting in higher costs for coverage. These increases can be significant, ranging from 50% to over 100% of previous rates, and sometimes even tripling premiums.

Several factors influence how much premiums will rise. The severity of the DUI offense, such as the blood alcohol content (BAC) level or whether it involved an accident, plays a role. A driver’s prior record, including any previous traffic violations or convictions, also impacts the insurer’s risk calculation.

State laws and specific insurance company underwriting policies further shape the extent of premium increases. Some states have regulations that mandate certain coverages or financial responsibility requirements after a DUI, which can affect overall costs. Each insurer also has its own proprietary methods for assessing risk and setting rates, leading to variations in pricing.

A DUI impacts insurance rates for an extended period, ranging from three to five years, and in some instances, even longer. The DUI remains a significant factor in rate calculations during this time.

Insurers factor the conviction into their risk models by assigning a higher probability of future claims. This means the driver is more likely to be involved in an accident or file a claim. Increased premiums are designed to offset this higher financial exposure for the insurance company.

Securing Coverage After a DUI

After a DUI conviction, obtaining or maintaining auto insurance can become challenging, as many standard insurers may be unwilling to provide coverage. One common requirement in many states is the filing of an SR-22 form, or a similar certificate of financial responsibility. This form is not an insurance policy itself but rather a document filed by an insurance company with the state to verify that the driver carries the minimum required liability coverage.

The process for obtaining an SR-22 involves finding an insurer willing to file it on your behalf, which means seeking out companies that specialize in high-risk policies. Once secured, the SR-22 must remain on file with the state for a specified period, often several years, to demonstrate ongoing financial responsibility. Failure to maintain the SR-22 can result in further license suspension.

Drivers with a DUI need to seek coverage from high-risk carriers, also known as non-standard insurers. These companies specialize in providing policies to individuals considered a higher risk due to their driving history, including those with DUIs. While they offer coverage when standard insurers might not, their premiums are much higher to compensate for the increased risk.

Another option for securing coverage is through an assigned risk pool, sometimes referred to as a state residual market. These programs ensure that all drivers, even those deemed high-risk and unable to obtain coverage in the voluntary market, can still acquire the legally mandated minimum liability insurance. Drivers are assigned to an insurer within the pool, and the cost is higher than standard rates.

When seeking coverage, the focus shifts to meeting state-mandated financial responsibility requirements. This means securing liability coverage that meets specific minimums. While additional coverage types, such as collision or comprehensive, may be available, they will also come at a higher cost from high-risk providers.