How Does Auto Insurance Work for Drivers with DUIs?

In the United States, a driver caught driving under the influence of alcohol or drugs (DUI) faces serious consequences, both legally and financially. One such consequence is the increased cost of auto insurance. In this article, we’ll take a look at how auto insurance for drivers with DUIs works and what affects the cost of the policy.

Premium Increase

The first and most obvious consequence of DUI is a significant increase in the cost of insurance. Insurance companies view drivers with DUIs as higher risk, which means higher premiums for these customers. On average, a DUI penalty can increase the cost of auto insurance by 50% or more, depending on the company and state. In some cases, drivers may be denied coverage altogether.

Types of insurance

For drivers with a DUI, it is recommended to look for a high risk (SR-22) policy. An SR-22 is a special proof of insurance that is required by most states if a driver has been convicted of a DUI. It confirms that the driver has the minimum required automobile insurance. Without an SR-22, a driver will not be able to reinstate their license after a suspension or revocation.

Impact on credit history

For many drivers with a DUI, the consequences are not only fines and premium increases, but also a lower credit score. If a driver cannot afford the high cost of insurance, they may look for more affordable options, which in turn can affect their financial stability. However, even with a DUI, it’s important to honor insurance payments so that you don’t further worsen your financial situation.

Timing and Discharge of Consequences

Once convicted of a DUI, auto insurance consequences can last anywhere from 3 to 5 years, depending on the state. During this time, the driver will pay significantly higher premiums. However, over time, if the driver demonstrates a good driving record, some companies may offer discounts or lower the cost of insurance.

Risks of not taking out insurance

Failure to obtain insurance can lead to even more serious consequences. In some states, not having insurance after a DUI conviction can lead to additional fines and even driver’s license revocation.

Conclusion

Auto insurance for drivers with a DUI in the U.S. is significantly more expensive and requires additional steps, such as filing an SR-22. To avoid unnecessary financial hardship, it is important to obtain insurance in a timely manner and comply with all legal requirements. While the consequences can be severe, over time drivers can rebuild their insurance history and recover more affordable premiums.