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DUI and Car Insurance Rates

Before a drunk driving conviction:

Starting Jan 1, 2007 California increased the reporting period from 7 to 10 years for a DUI conviction. Because of electronic reporting, the insurance companies will know very quickly if you are convicted of DUI. Speeding tickets and minor accidents only stay on your record for 3 years.

Know the rates

Insurance companies calculate their potential loss using different risk factors - the larger the potential claim, the more they charge. With car insurance, your driving record has an enormous impact on your auto insurance premiums. The number of tickets, accidents, and DUI arrests you have will all raise prices the car insurance company charges you.

Know your limits

If you like to drink, you need to figure out your legal limits. They now sell breath testers, so you'll know when you are not okay to drive, often after 2-3 drinks. There are charts available to compare your body weight and alcohol consumption. Most DUI offenders are people only drank a few beers or a glass or two of wine, and barely passed the legal limit. California law says you are impaired when your blood alcohol concentration (BAC) reaches .08.

Know the law

If you are a drinker, you should familiarize yourself with drunk driving laws. You can get a DUI sitting in a parked car, having the keys. That's called physical control of a vehicle. On the flip side, the police officer must testify about specific facts showing a traffic violation or reasonable suspicion of a crime. They must observe you 15 minutes after a Breathalyzer test. They shouldn't give you a blood test more than 3 hours after an arrest. All test should be NHTSA has approved. There are many technicalities (some below) that can help you during a DUI trial, but it's far better not to get arrested in the first place.

During a drunk driving event

You`re under no obligation to inform your insurer of an arrest for DUI or DWI, unless you are convicted in court or have your driver`s license suspended in a DMV administrative action.

You will likely be required to file an SR-22, or formal certificate of insurance, after a DUI / DWI conviction or administrative license suspension. Unfortunately, because SR22 forms are required only after a drunk driving arrest, submitting one to your insurance company is like announcing your DUI / DWI arrest over a loudspeaker.

DUI is a serious offense. There are fines, legal fees, and suspension of license. Your car insurance rates go up. It can also effect your future employment for the next 10 years from the date of violation, if they run your driving record. It can also affect our California homeowners` insurance rates. You will also lose the safe driver discount of 20% that was guaranteed you under prop 103.

If you are convicted of a DUI, your insurer company will either jack your rates or cancel you. If your insurance company raises your premiums but keeps you as a customer, you'll be considered substandard or “high-risk.” In California, the state requires the insurer to provide the state department of motor vehicles with an SR-22 Proof of Insurance Certificate. That removes your license suspension by proving to California that you are insured.

Not all California car insurance companies offer SR-22s. So your policy may be non-renewed or cancelled simply because the company can no longer provide insurance for you. In California, some states, insurers can’t cut you off in the middle of the policy term, so be sure to check on the laws where you live.

Another less-likely scenario is that your insurance company doesn’t find out about your DUI because, for whatever reason, it slips through the cracks of red tape. Occasionally, your insurer will not raise your rates or cancel you if you’ve been a long time insured with no other blemishes on your record. But this is also pretty unlikely.

After a drunk driving conviction

A drunk driving conviction can cause your auto insurance carrier to sharply increase your rates or even cancel your policy. You can still find coverage even after multiple drunk driving convictions, but it won't be cheap. Get rates in the green box at the top. California law requires your insurance company to electronically report your insurance information to the DMV. Once your former insurer notifies the department that your policy has been cancelled, you will receive a notice indicating that your vehicle registration will be suspended if you do not provide evidence of car insurance within 45 days.

If your policy is cancelled or non-renewed, you will still be able to find insurance. It will not likely be one of the preferred carriers, like AAA, Allstate or Geico, but some other well-known companies (such as State Farm and Progressive Insurance) as well as other smaller companies will cover you and file the SR-22 for you so your license may be reinstated. Your rates will most certainly be higher, particularly because a DUI violation remains on your driving record for 10 years in California. To find new insurance coverage after a DUI, get quotes from many different insurance companies. Find carriers in the green box at the top.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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