How Does a DUI Affect My Insurance Rate?

If you have ever found yourself in a situation where you have received a DUI, or driving under the influence, charge you know some of the damage this can do to your life. But already years after the fines have been paid off, you may find yourself nevertheless haunted by the mistake in regards to your insurance premium.

Proven again and again over time, people who have received one DUI charge are likely to receive another in their lifetime. Hopefully the one charge was enough to make you set your life straight and you will not be getting behind the wheel intoxicated again. But life has no guarantees, and while insurance companies are in the business of taking risks they do like to minimize their chances of loss.

One of the worst situations to find yourself in when just after a recent DUI you find a letter in your mailbox announcing that your insurance company is no longer willing to provide your insurance. Generally you have a very short period of time to obtain new insurance, and you will be less than happy with the surprise of your new insurance rate quotes when you call around.

When you receive a conviction of driving under the influence it is reported on your driving record. Sometimes it can take an insurance provider several months to notice this change, and often it is found when you go to revive your policy. The consequence is often that they are unwilling to cover you again, especially if you failed to notify them of the conviction in the first place. Insurance companies do not like these types of surprises.

Your new “high-risk driver” position is going to cause complications for up to 10 years. Depending on the state in which you reside, your state will keep your DUI on your driving record for a set period of time. As long as it shows you will have to confront the consequences of your actions translated into dollars and cents coming out of your pocket in the form of a skyrocketed insurance premium.

There honestly is not much that you can do about this, so once you have alerted your insurance provider as to your conviction it is best that you review your policy in detail and if you need to save money on your insurance bill to offset your inflated premium see what can be trimmed back.

Raising your deductible is often a quick way to see a change in your price. If your deductible is set below $1,000 absolutely raise it to at the minimum that amount. Set aside money for the event of an accident to cover your deductable so you do not find yourself stuck without transportation if an accident does happen. Also, if you have medical insurance from your place of employment you can likely lower, if not drop, your medical coverage from your policy. Check with your health care plan first to be certain injuries resulting from a car accident are covered, but in most situations they are.

While there are no simple answers or quick fixes, the best way to avoid having to deal with the problems a DUI causes with your insurance is to be certain it never happens again.

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