Getting Car Insurance after a D.U.I.
A DUI (Driving under the Influence) conviction could have a devastating impact on your car insurance, as you might imagine. Insurance companies will generally take this matter very seriously so you may need to start shopping around for free insurance quotes soon after. Here are a few things you should know about what to expect.
Your Current Insurance
The potential good news for you is your current auto insurance company may not get the information right away. Typically, your driving record isn’t examined regularly. If it is examined, it might be at your renewal time anyway. That means you have the potential of delaying the inevitable for at least a few months, if not a bit longer.
When your car insurance does discover you have been found guilty of a DUI, one of two things will probably happen. First, your classification will change almost overnight to ‘high risk’ because of the high correlation between drinking and automobile accidents. The last thing your insurance company wants is to be held financially responsible if you go out partying then crash into a van full of people in a fatal collision. This classification change will send your premiums through the roof. If this happens, start asking for free insurance quotes elsewhere. You may be able to find lower insurance rates.
The second possibility is your policy will be cancelled immediately. You really don’t want this outcome because it will make finding a new policy more challenging. Insurance cancellations don’t look good on your record nor do DUI convictions. Chances are if you do find an auto insurance company that will provide you with coverage it will cost you a significant amount of money.
SR-22 & You
In many states, you won’t be lucky enough to slip your DUI conviction by your insurance company even for a few months. That’s because those states are going to require you to submit an SR-22.
An SR-22 is a form provided by your insurance company to the Bureau of Motor Vehicles (BMV) establishing that you do have coverage. DUI convictions aren’t the only type of problem requiring this form. If you’re involved in an accident that is your fault and you don’t have insurance, for example, you would also be required to submit one of these forms to the BMV.
The SR-22 could hurt your relationship with your existing auto insurance company in one of two ways. First, it will let them know that you’ve had a run in with the law, and if they don’t already know about the DUI then this might prompt them to check out your driving record for themselves. Thus you’ll end up paying the higher rates or having your policy cancelled. Second, not all insurance companies will even provide an SR-22. By not offering the documentation, the company is essentially eliminating many high risk policy holders because they no longer meet their insurance needs. If this happens with you, the next step is to start searching for free insurance quotes from companies that will provide you with an SR-22.
Keep in mind that in states that do require an SR-22, you won’t be able to legally drive your car until you have one of these forms on file at the BMV. In most of the states using the form, your license will actually be suspended until proof of liability coverage is provided.
Other Facts You Should Know about SR-22
If you’re convicted of a DUI and you continue to carry auto insurance in a state requiring an SR-22, you’ll need to know some other useful information about the documentation.
For starters, some insurance companies do not provide the form for free. You may need to pay an addition fee just to have the form created and send to the appropriate authorities. Again, this is probably to encourage you to find another insurance company. The fees vary so if you’re not happy with what your current company charges look elsewhere. Remember it doesn’t hurt to check out free insurance quotes from other companies.
Another thing you should know is that even if you move to a state which does not requiring an SR-22 be filed after a DUI conviction, you’ll need to maintain that form in the original state for its entire duration, generally three years. If you do not continue to meet the minimum standards required for that SR-22, your license could be suspended all over again. Meeting those standards means you will have to meet the minimum insurance coverage requirements for the state where you lived previously if they are higher than those in the state in which you live.
Additionally, you should know if your insurance is cancelled or suspended for any reason, the company is obligated to contact the BMV and report that you no longer have financial liability coverage. If this happens, your license will be suspended. If you do want to change insurance while under an SR-22, makes sure to check out free insurance quotes and make your decision before you lose your other coverage.
July 18, 2009, Posted by Rainy Day Mitch