How Does a DUI Conviction Affect Your Insurance Costs?
A DUI conviction can impact many aspects of your life, from your criminal record to losing your driving privileges or your driver's license. What many people don’t ask until it is too late is how does a DUI conviction affect your insurance costs?
Because insurance companies consider people who have been convicted of a DUI to be high risk drivers, some car insurance companies will refuse to provide coverage for someone with a DUI on their record. The companies that do insure drivers with a DUI conviction charge much higher rates. After your DUI conviction, your insurance company may cancel your coverage or notify you that your rate is increasing.
How Long Does Your DUI Conviction Stay on Your Driving Record?
In most states, a DUI conviction stays on your driving record for five to ten years and will impact your car insurance rates for at least three. In some states, DUIs are the same as any other traffic violation, and your DUI will fall off your record after three years.
Laws in other states keep DUIs on your driving record for longer than other traffic violations. Many states keep it on your record for seven years. In California, for example, your DUI will stay on your driving record for 10 years. Some state laws, such as in Texas, keep your DUI conviction on your record for life.
Keep in mind, your driving record is different than your criminal record. Depending on where you got your DUI, it could stay on your criminal record for life. Some states do not allow DUI convictions to be expunged.
How Does a DUI Conviction Affect Your Insurance Costs?
It can be costly to insure your car after a DUI. Insurance.com analyzed the average annual car insurance rate of 10 ZIP codes in each state and discovered that rates jumped by anywhere between 38% and 125% after a first-time DUI conviction. Your driving history will also factor into how much the cost of your liability coverage increases. If you have a long history of other traffic violations, such as speeding tickets, or you have been in several accidents, your rate may increase astronomically. On the other hand, if the DUI is the only mark on your record, you probably won't notice too much difference in your monthly payment.
As time passes, the DUI will have a smaller impact on your auto insurance rates. Once the DUI violation is completely off your motor vehicle report, you should begin to see lower rates.
How To Get the Best Car Insurance Rate Possible After a DUI Conviction
The Insurance.com study identified the following average rates for post-DUI auto insurance:
- State Farm — $1,633
- Progressive — $2,019
- Farmers — $2,228
- Allstate — $3,132
- Nationwide — $3,563
As you can see, the average cost of insurance coverage varied almost $2,000 between each company. While these are just averages, the actual cost of your DUI insurance will vary depending on a variety of other factors besides your driving record. Your age, your gender, the type of vehicle you have, how much you drive, where you live, and where you work are just a few examples. Therefore, to get the best auto insurance rate possible after your DUI conviction, it is important to shop around and get car insurance quotes from a variety of companies. If you just stick with your current insurance company, you may be missing out on a better price.
What is an SR 22?
An SR-22 certificate of financial responsibility is a car liability insurance document required by many states for high risk insurance policies. DUI drivers often fall into that category. An SR-22 can be required to restore your driver's license when your suspension is over. Though people often refer to SR-22s as “SR-22 insurance,” it is a certificate and not an insurance policy.
The following states do NOT require SR-22 certificates to be filed:
- Delaware
- Kentucky
- Minnesota
- New Mexico
- New York
- North Carolina
- Oklahoma
- Pennsylvania
If you live in any other state, a certificate will be required from your insurance provider. Florida and Virginia don't require an SR-22 form, but that is only because they require you to file an FR-44 form instead. The FR-44 form is similar to an SR-22, in that you will need to file it to get your driver's license back. However, the FR-44 requires that you purchase additional liability coverage that is higher than the state minimums.
What if I Need an SR-22 or FR-44 but Don't Have a Car?
If you don't own a vehicle, but your state still requires you to obtain an SR-22 or an FR-44 form, you can purchase a non-owner car insurance policy. This type of insurance policy covers you as a driver even though you don't have a car. A non-owner auto insurance provider will typically require that:
- You have a valid driver’s license or can get one by filing an SR-22 or FR-44.
- You don't own a vehicle.
- You don't have regular access to a car.
How Much Does Non-Driver Auto Insurance Cost?
Non-owner car insurance is typically cheaper than standard auto insurance coverage. While the costs vary by provider, the average cost of a non-owner policy is $474 if you have a clean driving record. Insurance companies tend to view people who don't own a car or have regular access to one as lower risk drivers since they will likely drive less. However, if you have a DUI conviction on your record, your risk level will rise and you will usually have to pay more than the average rate.
While non-owner auto insurance is much cheaper than standard auto liability coverage, some major car insurance companies do not offer it.
The following auto insurance providers provide non-owner car insurance policies:
- Acceptance Insurance
- American Family
- Dairyland Insurance
- Direct Auto Insurance
- Farmers
- Geico
- Liberty Mutual
- Nationwide
- State Farm
- Travelers
What if I Can't Get Car Insurance Coverage After a DUI?
Undoubtedly, your DUI conviction will make it more difficult for you to get car insurance. If auto insurance providers keep turning you down, it may be time to look to your state government for help. Many states have last resort liability insurance programs called "assigned risk" auto insurance to provide coverage to extremely high risk drivers who can't get private insurance.
Under assigned risk insurance programs, a specially-designated office within the state government will assign the drivers to a car insurance company that can provide them with the minimum coverage so they can get back on the road. Auto insurers are required to accept a number of high risk drivers proportional to their market share in that state. These drivers are placed in the “assigned risk pool" with the other extremely high risk drivers, making the cost of insurance through assigned risk programs particularly high. For this reason, you should shop around as much as possible before resorting to an assigned risk program, and only pursue assigned risk coverage if you truly can't get the insurance coverage you need anywhere else.
