Effects Of DUI On Auto Insurance, And How To Mitigate The Effects
A conviction for driving under the influence (DUI) can have devastating effects on your auto insurance coverage. Below is an overview of these effects and how you can mitigate them.
The Effects
Here are some of the major effects a DUI conviction can have on your auto insurance coverage.
Rate Hikes
Auto insurance companies look to the past to predict the future. A motorist who has committed driving-related infractions in the past is likely to do the same in the future. Also, DUI increases the risk of an accident since intoxication impairs judgment, reduces reaction time, and interferes with vision.
All these factors mean DUI convicts are risky drivers who can cost auto insurers money. Thus, your auto insurance rates will go up after a DUI conviction.
Coverage Cancelation
DUIs don't always result in coverage cancellations, but cancellation is possible. Your carrier may cancel your cancelation in case of an aggravated DUI, particularly if you have a history of prior DUIs. The cancelation means you won't be able to drive since it's illegal to drive without auto insurance coverage in most states.
Need for SR-22 Insurance
SR-22 insurance is not technically a form of insurance. Rather, it is proof to the government that you carry at least the legal-required amount of auto insurance. The government requires SR-22 filing if you have committed a traffic offense, such as a DUI, that would jeopardize your insurance coverage. Auto insurers know that SR-22 comes after a crime, so they will raise your rates after your SR-22 filing.
Mitigation Measures
You don't have to suffer the negative effects of a DUI on your insurance forever. With the right measures, you will be able to mitigate these effects. Here are some measures that can help.
Inform Your Carrier
The first thing is to inform your insurance carrier about your DUI. This is both a requirement of auto insurance carriers and a prudent move. Your carrier wants to ensure that you are honest; try to hide things from your auto insurance carrier, and you will jeopardize your relationship with them.
Avoid Further Violations
The more DUIs you rack up in your driving history, the more their cumulative effect will affect your auto insurance. Naturally, you also need to avoid further driving violations and not just further DUIs.
Shop Around
Insurance companies differ in how they handle DUIs. All auto insurers frown upon DUIs, but some will punish you for a DUI more than others. Shop around, and you may be lucky enough to find a carrier that may be a little bit kind on your DUI history. Don't forget to ask for all the discounts you can get to minimize the effect of the rate hike on your premiums as you look for an auto insurance carrier.
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