If you have been convicted of driving under the influence of alcohol or drugs (DUI), it is likely that car insurance prices soar through the roof.
According to the Insurance Information Institute (III), every 45 minutes a traffic accident related to alcohol in the United States occurs. Besides risking your life and that of other people, a drunken driving conviction carries a serious penalty of your auto insurance company
Insurance companies can review records of their motor vehicles only once every three years or when applying for a new policy. It is possible that accidents, fines and DUI never appear on your official record of motor vehicles. However, if your insurer will discover a DUI it will be classified as a “high risk driver.” Purchase a new insurance at the time of renewal is the best strategy, because rates vary greatly among companies auto insurance. Moreover, an increase in rates may be the least of his problems, as your policy may be canceled or not renewed, especially if you are in a class of preferred rate. Then you’ll be forced to seek new car insurance with a double burden for DUI and the cancellation policy in your file.
The laws relating to DUI and car insurance coverage varies by state. Most states require DUI offenders get a form called SR-22 auto insurers, so that in this way cannot be hidden. This form DMV tests the possession of liability insurance and eliminates the suspension of the license. The SR-22 also requires your insurance company to notify the Department of Motor Vehicles (DMV) status if your car insurance canceled for any reason. You will probably have to show proof of insurance for a period of three to five years with your state DMV.
Insurers can miss DUI convictions
It is possible that your insurance company would not know your DUI conviction if your state does not require you apply an SR-22. According to the Insurance Research Council, one in five convictions for traffic violations never end up in the records of motor vehicles due to lack of information sharing between the courts and the departments of motor vehicles, or because a conviction has been eliminated through alternative means, such as driving school. If you get a reduction in your DUI by a plea bargain, or has a limited license suspension, for example, 30 days, it is also very unlikely that your insurer finds out your sentence.
If your insurance company is not notified of your sentence at the time it occurs, still it has some years that may elevate fees if the DUI is discovered later.
This does not end here. Your DUI conviction will also pursue you if you apply for life insurance and could also affect your rates.