The Impact of a DUI on Your Auto Insurance Rates
Driving under the influence, or DUI, is a serious offense that carries not only legal consequences but also financial ones. In addition to fines, court fees, and possible jail time, a DUI can have a significant impact on your auto insurance rates.
Why a DUI affects your auto insurance rates
Auto insurance companies determine your rates based on a variety of factors, including your driving record. When you receive a DUI, it is an indication to the insurance company that you are a high-risk driver. You have been convicted of a serious offense that puts you and others on the road in danger.
From the insurer's point of view, a driver who has been convicted of a DUI is more likely to be involved in an accident or cause other damages on the road. Therefore, to protect themselves, insurance companies will typically raise rates for drivers with a DUI conviction.
It's important to note that not all insurance companies treat DUIs equally. Some may offer more forgiveness than others, or they may take into account other factors such as age, driving history, or type of vehicle you drive.
How much will your insurance rates increase?
It's impossible to say exactly how much your insurance rates will increase after a DUI conviction, as each insurance company has their own formulas for determining rates. However, according to ValuePenguin, the average insurance rate hike after a DUI is about 80%.
Additionally, some states have mandatory requirements for auto insurance coverage after a DUI. For example, in Florida, drivers who have been convicted of a DUI must obtain a minimum of $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident, and $50,000 in property damage liability coverage.
It's also worth noting that insurance rate increases don't just last for a short period of time. Typically, a DUI conviction will stay on your driving record for several years. During that time, your insurance rates will likely remain elevated.
What can you do to lower your rates after a DUI?
If you've been convicted of a DUI and are seeing higher insurance rates as a result, there are a few things you can do to try to lower your rates:
- Shop around: Not all insurance companies treat DUIs equally. It may be worth shopping around for quotes from different companies to see if you can find a better rate.
- Talk to your insurer: If you have been a loyal customer of your current insurance company, it may be worth speaking to them to see if there's anything they can do to lower your rates.
- Consider a defensive driving course: Some insurance companies offer discounts to drivers who have completed a defensive driving course. This may be a way to show your insurance company that you are taking steps to become a safer driver.
Conclusion
A DUI conviction can have long-lasting financial consequences, including higher auto insurance rates. It's important to understand why insurance companies view DUIs as a high-risk factor and what steps you can take to lower your rates. Ultimately, the best way to avoid higher insurance rates is to avoid driving under the influence in the first place.