Auto Insurance Rates and SR-22 Forms After a DUI

One of the costs of a driving under the influence (DUI) conviction is the effect on your car insurance rates. This is just one of many possible consequences of driving under the influence.

This article discusses the impact of a DUI on your insurance rates. It also describes the SR-22 requirements many states impose before lifting a driver’s license suspension.

Since DUI charges carry many types of penalties, seek legal advice after an arrest. Even a first-time DUI can affect your car insurance policy. A DUI defense lawyer can guide you through fighting the charges and getting your driver’s license back.

Will My Insurance Costs Rise After a DUI?

If you have a drunk driving conviction, you can expect to pay significantly higher auto insurance premiums as a “high-risk driver” once your insurer discovers your offense.

Your insurance company can drop your coverage altogether. You might have to shop around for a new policy with a DUI and insurance cancellation on your record. This process can be difficult as high-risk insurance policies are typically more expensive.

Whether you keep your current policy or buy a new one, you’ll probably pay more for your coverage. The average rates and deductibles can be much higher as a high-risk driver. The insurance provider believes it’s more likely to pay a future claim for an at-fault accident.

Likewise, the offense may even affect your life insurance premiums. The insurance company may calculate that your risk of death is higher due to a lack of safe driving, meaning it will be more likely to pay a claim sooner. To offset this risk, the insurer may chare you more for your policy.

How Much Do Insurance Rates Rise After a DUI?

Not all DUI offenses are treated the same. Most insurers look at DUI offenses on a case-by-case basis. For example, you might only get a marginal rate increase on your insurance quote if you have an otherwise excellent driving record and the DUI conviction is your first offense. But since it’s an insurance company’s decision, the actual cost increase varies.

Multiple DUI offenses usually result in much higher rate increases. Many insurance companies refuse to cover repeat offenders.

Loss of Insurance

Each state requires minimum coverage to be on the road. If you lose your car insurance after a DUI or another driving violation, you won’t be able to drive until you get insurance again.

But you may have already lost your driver’s license due to the DUI. In that case, you wouldn’t be able to legally drive until you both recover your license and regain insurance.

Alcohol-related offenses can be costly. But the adverse effects of a DUI or DWI conviction go well beyond a fine, court costs, and license suspension.

What Is the SR-22 Insurance Form?

If you’re convicted of a DUI, most states require you to get an SR-22 form from your insurer. This form proves to the Department of Motor Vehicles (DMV) that you carry liability insurance. The DMV or the court will tell you whether you need an SR-22 form.

In those states, you must have proof of liability insurance for the DMV to lift your license suspension and restore your driving privileges. The SR-22 form acts as a red flag about your conviction. It also requires your insurer to contact the DMV if your insurer cancels your insurance policy.

Only some insurance companies offer SR-22 auto insurance policies. Some insurers either cancel or don’t renew your policy after a DUI conviction.

Insurance Requirements Vary by State

Depending on your state, you may have to show proof of auto insurance coverage to your state’s DMV for up to five years to maintain a valid license. Some states now accept electronic SR-22 filings.

Two states, Florida and Virginia, require a different form. The FR-44, or financial responsibility certificate, is an alternative to the SR-22 form. The FR-44 mainly differs in that it requires the driver to carry a higher minimum liability coverage.

Eight states don’t need SR-22 insurance, including:

• Delaware
• Kentucky
• Minnesota
• New Mexico
• New York
• Oklahoma
• Pennsylvania
• North Carolina

When Will the Cost of Car Insurance Rise?

Insurers will usually raise the rate upon discovering an offense. So, the cost increase may not happen right after a DUI arrest. Car insurance companies have a few years to raise your rates after a DUI conviction, even if they don’t immediately discover your conviction.

Whether your auto insurance company quickly discovers your DUI (if at all) depends on your state’s laws and procedures and how the court handles your case.

How Do Insurance Companies Find Out About DUIs?

In general, the state adds any tickets for traffic violations (including DUI offenses) to a record of your driving history. Many insurers regularly request a policyholder’s motor vehicle records from their state. For example, it may check your record when your current policy is up for renewal. When the insurance company orders a new copy of your record, it may discover changes like a new DUI.

Reasons the offense may fly under the radar include:

• Poor communication between the courts and the DMV
• An erased conviction due to a defensive driving course
• A reduced charge due to a guilty plea

Your conviction may also escape detection by your insurer if you committed the offense in a state that doesn’t need an SR-22 form. Yet, most states share moving violation information, such as speeding tickets. If you got a DUI in another state, your insurer may still find out about it.

How Can I Lower My Insurance Rates After a DUI?

If you maintain a clean driving record, it’s possible to reduce your insurance rates again. Unfortunately, a DUI stays on your motor vehicle record for many years. Erasing it from your record through a legal process called expungement is not always possible.

States differ in how long they keep a DUI conviction on a driver’s record. In most states, a DUI or driving while intoxicated (DWI) offense will stay on your record for between three and five years. In California, a DUI or DWI will stay on your driving record for 10 years.

After the DUI disappears from your driving record, you may be able to negotiate lower rates with an insurance agent. This outcome is more likely if you avoid additional DUIs and tickets in that time.

Get a Lawyer’s Help for Insurance Requirements After a DUI

DUI convictions can be expensive enough without adding the cost of higher insurance premiums. If you’re arrested or charged with driving under the influence of alcohol, meet with a local DUI attorney.

A lawyer can explain your state’s drunk driving laws, the immediate impact of DUI charges, and how driving while impaired might affect your auto insurance rates. They can also help you understand your legal defense options and the potential DUI penalties.