Note: The Following is a guest post from CarInsuranceComparison.com
There are many monetary and lifestyle changes in store for anyone convicted of a DUI/DWI. Second to legal issues, the first question is usually related to car insurance. Most drivers want to know how their car insurance is going to be affected by their DUI/DWI. That can be a difficult question to answer, as it will vary based on state law, prior driving record, and the car insurance company policy.
Cases Where Insurance May Not Be Affected
While it is likely that auto insurance will be affected by a DUI/DWI conviction, there are certain circumstances that can keep the DUI/DWI hidden from the car insurance company.
First, discovery of the DUI/DWI will depend on what the policy of the insurance company is on checking motor vehicle records for their drivers. If the car insurance company only checks the record during the new application process, then the only way they will know about a DUI is if the driver decides to inform them. If they only check the motor vehicle record once every one to three years, then the car insurance company will not be apprised of the DUI/DWI until it is time for the driver to have his routine motor vehicle record check.
Second , the DUI/DWI may never make it to the motor vehicle record in some states. An example would be a DUI/DWI charge that is reduced during a plea bargain.
Third, the legalities (related to DUI/DWI law and car insurance) will vary by the state the DUI/DWI occurred in. Most states require all convicted DUI/DWI offenders to have an SR-22 form or Certificate of Financial Responsibility form from their car insurance company. This form is a continuous method of proving to the local Department of Motor Vehicles (DMV) that the driver has liability insurance. The SR-22 form also requires the insurance company to notify the local DMV upon cancellation of insurance. However, not every state requires this form, and therefore the car insurance company would only know about the DUI/DWI if they routinely check the driving record of the driver. Some states that do not require an SR-22 form include:
-Delaware
-New York
-North Carolina
-Kentucky
-New Mexico
-Minnesota
-Oklahoma
-Pennsylvania
It is needless to say that the above occasions of the car insurance company not being apprised or discovering one of their drivers being convicted of a DUI/DWI is few and far between. In most cases, the DUI/DWI offender will see their car insurance affected. DUI auto insurance rates will likely be quite high although there are different policy options to consider to decrease the cost.
How a DUI/DWI Affects Car Insurance
If the car insurance company discovers that any of their drivers have a DUI/DWI, the driver is undoubtedly going to see an affect on their insurance policy. Just how bad the affect is will be depending upon the car insurance company policy and how they choose to enforce the policy. Some car insurance companies will review each DUI/DWI driver on a case-by case basis. They will factor in age, gender, driving history, length of time with the company, etc.. when determining the affect on price and continued availability of car insurance. Meanwhile, other companies have a strict DUI/DWI company policy that applies to all drivers. Regardless, the car insurance company has the following options at their disposal:
Keep the DUI/DWI driver, but charge a higher rate for car insurance coverage
Cancel the car insurance policy immediately
Refuse to renew the car insurance policy
Move the driver to a subsidiary or “assigned- risk pool” for riskier drivers
How Does Being Classified as “High-Risk” Affect Car Insurance
If the DUI/DWI driver has his policy canceled or moved, he will most likely end up in a high-risk pool of drivers. Most states require car insurance companies to participate in high-risk pools based on the amount of business that they do in the state. The car insurance company can not deny any of the drivers that they are assigned. This is beneficial to DUI/DWI drivers, especially those that already have prior driving offenses, because they will at least have an option for car insurance. However, the premium is very costly for just the legal minimum liability.
Some Options to Offset the Affects of DUI/DWI
Most insurance companies offer an array of good behavior and incentive-building discounts. These can help to offset a small portion of the added expense from the DUI/DWI. Check if the insurance company offers:
-A multi-policy discount for a home, additional vehicle, motor home, etc..
-Driver training discount for completing a driving safety course
-Safe vehicle discount for vehicles with airbags or other safety restraint devices.
-Good student discounts for any children on the policy with good grades.
How Long Will the DUI/DWI Affect Car Insurance
How long a DUI/DWI remains on the driving record is something the each state will determine. Most states have a 5 to 10 year average time frame that the DUI will appear on the DMV record. A DUI/DWI in New Mexico will stay on the driving record for 55 years, while Arizona will only keep the DUI/DWI on record for 5 years. The driver can ask their local state DMV how long the DUI will stay on their driving record. Once the DUI/DWI is cleared from the drivers’ driving record, he will be able to search out cheaper car insurance.
About David Matson