December 1, 2010

How A DUI Charge Can Impact Future Auto Insurance Rates For A Driver

There are many factors that can influence the rates you receive from an auto insurance quote. For example, insurance companies will review the make and model of vehicle and determine how likely it is to be stolen or vandalized or determine how expensive parts are to replace. They also review an individual's driving record to see how many tickets, suspensions, and accidents they have accumulated. If a person has one or more DUI charges, this can greatly affect their auto insurance quote.

Once you have been convicted of driving under the influence of drugs or alcohol, your insurance company will increase your premiums because you are now considered to be a high risk driver. Insurance companies base their premiums on risk; if a driver has a high chance of being in an accident or filing a claim, then they will be charged a higher rate for their insurance. This is especially true for DUI's. These types of offenses can potentially result in high amounts of property damage, injuries, and deaths. Insurance companies do not want to pay out large claims because their insured drivers have damaged many vehicles or caused serious injuries due to driving while impaired. So, they pass this financial exposure on to the high risk drivers.

When a person is convicted of a DUI, they will usually lose their driver's license for a certain period of time. If there is no driver on the policy with a valid driver's license, then the insurance company can cancel the policy. They can cancel it midterm or they can choose to keep the policy on the books until its expiration date and then refuse to renew it. Drivers who have been convicted of a DUI will find it very difficult to secure insurance elsewhere.

If a person has been convicted of a serious traffic violation such as a DUI, then they are required to file an SR-22 form. This is a form that shows proof of insurance as well as advising the insurance company that the insured has acquired a DUI charge. It acts like a red-flag. If you cancel your insurance at any time while you have an SR-22, the insurance company and DMV must be notified and then your license will once again be suspended.

If you have one or more DUI charges on your driving record then you must understand exactly how this can influence your auto insurance premiums. This is considered to be a serious offense and can affect an individual's insurance for many years. When you obtain an auto insurance quote you should be completely honest if you have any suspensions or violations on your record.