Does a DUI Affect Car Insurance Rates?

posted in: Car Insurance | 0

Police Checking for DUI in CheckpointA DUI can cause many ramifications. Drinking and driving is the cause of over 10,000 deaths on a yearly basis. Driving under the influence of alcohol is dangerous, reckless, and expensive. Some of the financial issues that may arise are court cost, impound fees, lawyers, license fees, and addiction recovery classes. Another issue that people may not realize is that getting a DUI can also negatively affect your car insurance rates.

Drinking alcohol impacts the nervous system. It lowers concentration and reaction times making it extremely difficult to effectively and safely operate a motor vehicle. You will receive a DUI if you get pulled over by the police and they determine that your blood alcohol level is above the allotted threshold of .08 for your state. If pulled over, you must take a sobriety test. Refusing to take the test can lead to fines and/or you can get your license suspended automatically. After conviction, there is a great chance that your license will be suspended for at least six months. Getting caught with a DUI can follow you for many years.

Once past the court issues that come with a DUI charge, you must then contact your insurance provider. If you do not contact your insurance provider immediately, you could be charged back pay for the time period you did not report your conviction. Your insurance provider will find out about your conviction sooner or later so it is best to inform them as soon as possible.

DUI Affect on Car Insurance Premium:

DUI Increases Car Insurance RateOnce your insurance company sees that you have a DUI conviction, you will automatically become a high risk driver. A DUI can stay on record with your insurance company for up to five years. Insurance rates for individuals with a DUI can raise an exuberant 90 percent from the previous rates. Insurance companies have to raise the rates for DUI conviction because of the serious damage that driving under the influence can cause. There is no way to know whether an individual will continue to drive under the influence or if it was a one time lapse in judgment. Statistics show that people who are caught once have a high chance of getting caught with another DUI. Anyone who gets a DUI can expect to pay two to three times more than their regular rates. Insurance companies have to protect themselves because high risk drivers are more inclined to have to file a claim.

While these rates may lower over the years if you can keep your driving record clean, you can expect to pay high car insurance rates for at least five years after your conviction. The amount of time it is affected is varied by the state. Individuals will more than likely have to apply to get a SR-22 bond in most states which is a form that provides a proof of financial responsibility.

Driving while under the influence of alcohol can be very detrimental. It can cost people their lives. It can cost the convicted thousands of dollars. It will affect your insurance rates dramatically.

Leave a Reply