How a DUI Conviction Affects Your Car Insurance

Photo (cc) by JSmith Photo

Editor’s Note: The following post comes from partner site Insure.com.

If you’ve been convicted of driving under the influence (DUI) of alcohol or drugs, it will likely drive your car insurance rates through the roof.

According to the Insurance Information Institute (III), there is an alcohol-related traffic fatality in the United States every 45 minutes. Aside from the risk of killing yourself and others, a drunk driving conviction carries with it serious penalty from your car insurance company.

Auto insurance companies may check your motor vehicle record only once every three years or when you’re applying for a new policy. It’s possible that accidents, tickets and DUIs may never make their way to your official motor vehicle record. However, if your insurer discovers your DUI and classifies you as a “high-risk driver,” shopping around at renewal time is the best strategy, as rates will vary greatly among auto insurers. On the other hand, a rate hike may be the least of your problems; your policy could be cancelled or nonrenewed, especially if you are currently in a preferred rate class. Then you’ll be forced to look for new car insurance with the double-whammy of a DUI and a cancellation on your record.

Laws regarding DUIs and car insurance coverage vary by state. Most states require DUI offenders to get a form called an SR-22 from their auto insurers, so you can’t hide. This form proves to the DMV that you carry liability insurance and removes your license suspension. An SR-22 also requires your insurance company to notify your state’s department of motor vehicles (DMV) if it cancels your auto insurance for any reason. You’ll likely have to file proof of insurance for three — sometimes five — years with your state’s DMV.

Some car insurance companies don’t even offer SR-22 policies, so your policy could be nonrenewed or cancelled because your company can no longer provide what you need.

Insurers can miss DUI convictions

It’s possible that your insurance company will never find out about your DUI conviction if your state does not require you to seek an SR-22. According to the Insurance Research Council, as many as one in five convictions for traffic violations never end up on motor vehicle records due to lack of shared information between courts and motor vehicle departments, or because a conviction has been erased through alternative means, such as driving school. If you get your DUI charge reduced in a plea bargain, or have a limited license suspension, such as 30 days, it’s also very unlikely your insurer will find out about your conviction.

If your insurance company misses the conviction at the time it happens, it may still have a few years to raise rates if the DUI is discovered later.

For example, State Farm’s action depends on which subsidiary you’re with. The insurer reviews rate-increase decisions on a case-by-case basis. If you have a preferred policy with State Farm Mutual Insurance Co. and receive a DUI, State Farm will likely move you into State Farm Fire & Casualty, which is its standard-policy company for riskier drivers and higher rates.

If you’re with Progressive, you will not face nonrenewal or cancellation because of a DUI, but you may face a rate increase. Progressive also reviews rates on a case-by-case basis, with multiple factors such as age, gender, driving history and your vehicle model going into your rate.

It doesn’t end there. Your DUI conviction will follow you if you apply for life insurance and could affect your premiums there, too.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
17 Surprising Things You Can Clean in a Dishwasher
17 Surprising Things You Can Clean in a Dishwasher

It’s often easier and faster to put these household items in the dishwasher than to clean them by hand.

8 Ways to Slash Your Internet Bill
8 Ways to Slash Your Internet Bill

No matter what price you are paying for internet service, taking these simple steps can lower it.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

13 Things Seniors Can Get for Free — or Almost Free
13 Things Seniors Can Get for Free — or Almost Free

There are many ways to get cheap or free services and goods after reaching a certain age.

Small Splurges That Make It Feel Like You’re Living Large
Small Splurges That Make It Feel Like You’re Living Large

Cutting costs is the shortest path to financial freedom. However, there are times when a little spending can produce big returns.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Rules Everyone Should Know by Now
7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

9 Shopping Mistakes to Avoid at Costco
9 Shopping Mistakes to Avoid at Costco

Are you missing out on serious savings at your favorite warehouse club?

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

They don’t make coffee makers like this anymore.

The 16 Cars Most Likely to Last 200,000 Miles
The 16 Cars Most Likely to Last 200,000 Miles

One automaker takes half the spots on a list of the longest-lasting vehicles.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

Is Writing a Check Still Safe?
Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

6 Ways to Protect Your Retirement Accounts From Hackers
6 Ways to Protect Your Retirement Accounts From Hackers

Imagine having $245,000 stolen from your retirement account — and not being reimbursed.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

This Is the Most Dependable Car Brand in the U.S.
This Is the Most Dependable Car Brand in the U.S.

This brand’s vehicles are least likely to give drivers repair headaches, according to J.D. Power.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Hidden Sections of Amazon Every Shopper Should Know
7 Hidden Sections of Amazon Every Shopper Should Know

These little-known departments of Amazon are gold mines for deal-seekers and impulse shoppers alike.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

Homeowners Say These 2 Kitchen Appliance Brands Are Best
Homeowners Say These 2 Kitchen Appliance Brands Are Best

One brand takes five of the top honors, while another ranks highest in three categories.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.