Will My Insurance Go Up if Someone Gets a DUI in My Car?

When someone else gets a DUI while driving your car, the impact on your auto insurance policy can be a significant concern. Understanding how insurance operates in such situations is important for vehicle owners. The implications can be complex, involving different aspects of your policy and the incident’s specific circumstances.

How Insurance Policies Cover Permissive Use

Auto insurance policies typically extend coverage to individuals who are not the primary policyholder but have been given permission to operate the insured vehicle. This concept is known as “permissive use,” and it means your insurance generally “follows the car.” Permissive use usually applies to occasional drivers, such as a friend or an extended family member, who are not regularly listed on your policy. This differs from household members, who typically need to be explicitly added to your policy for coverage.

However, common exclusions and limitations can affect permissive use coverage. Your policy may not provide coverage if the person driving your car did not have your explicit or implied permission. Additionally, if you lend your vehicle to an unlicensed or inexperienced driver, your insurance might deny coverage. Some policies are “named driver” policies, which only cover individuals specifically listed, meaning permissive use would not apply.

Coverage can also be negated if the vehicle was used for business purposes, such as ride-sharing or deliveries, unless you have a specific endorsement. Policies typically do not cover damages resulting from criminal activity or intentional acts by the driver. If a driver has been formally excluded from your policy in writing, no coverage applies. Permissive use coverage can sometimes have lower liability limits or higher deductibles compared to coverage for the named insured.

Factors Influencing Your Insurance Premium

Many variables are considered by insurance companies when assessing the impact of a DUI incident involving your vehicle. The driving record of the individual who received the DUI is a primary consideration, as any prior offenses contribute to how an insurer classifies their risk level. A DUI conviction immediately signals to insurers that the driver is a high-risk individual, increasing the likelihood of future claims.

The severity of the incident itself also plays a role in determining the potential premium increase. Factors such as the driver’s Blood Alcohol Content (BAC) level, whether there was property damage, or if injuries or fatalities occurred, can lead to more substantial rate hikes. A higher BAC or involvement in an accident often results in a more significant increase in premiums.

Your specific policy type and coverage limits can affect the outcome. While liability coverage is fundamental, the presence of collision or comprehensive coverage and their respective limits can influence how costs are handled after an incident. Some policies might also apply lower coverage limits when a permissive user is involved.

Insurance rules and the impact of DUIs can vary based on the regulatory environment. Some jurisdictions have “lookback” periods of three to ten years during which a DUI remains on a driving record for insurance purposes. Your own driving record is another input in the insurer’s overall risk assessment; a clean record can help mitigate some impact. Insurance providers also have their own specific criteria and rate increase structures, leading to variations in how much premiums might rise, with average increases ranging from 50% to 300% or more.

Potential Insurer Actions

Following a DUI incident involving your vehicle, your insurance company may take several actions. A common consequence is a significant increase in your insurance premiums. These elevated rates typically last for three to five years, though in some instances, they can extend for up to seven or even ten years depending on specific regulations and the insurer’s policies. Many jurisdictions also require an SR-22 certificate, which proves you carry the minimum required liability insurance, and this requirement usually lasts for one to five years.

Your insurer might choose not to renew your policy at the end of its term. This is a common response when a driver is classified as high-risk. While insurers generally cannot adjust rates mid-term, they are permitted to do so at renewal based on updated driving records.

In more severe cases, or under specific policy conditions such as non-payment or fraud, an insurer might cancel your policy mid-term. If your policy is canceled, you would be required to secure new coverage immediately, as driving without valid insurance is prohibited. The incident could also make it more challenging and expensive to obtain new insurance from other providers. You may need to seek coverage from companies specializing in “high-risk” drivers, which typically offer policies at significantly higher rates. Even after the initial period of increased premiums, the presence of a DUI on a driving record can continue to influence future insurance applications.