Will My Auto Insurance Company Drop Me After A DUI?
Car insurance companies have a primary goal of making profit and the way they achieve that goal is by minimizing risk. After you have been convicted of DUI your auto insurance company may choose two different options with regards to your policy. They will either increase the premium enough to cover the additional risk you pose or just non renew your policy. If they decide to non-renew your policy this basically means that once your policy period expires they will not allow it to continue. Most companies will send out a letter at least 60 days prior to notify you of this policy change.
Not all auto insurance companies will drop you after a DUI but it really depends on the state and the company’s current appetite for risk. Insurance companies will go through cycles where they may be willing to take on more risk but with substantially higher premiums. Even if your current insurance company cancels your policy on renewal due to the DUI violation there will be others willing to accept your business. It may sound unfair or illegal for companies to operate this way but they are only concerned with making a profit.
If my current auto insurance provider non renews my policy what are my options?
First don't panic there are many different insurance companies that operate in each state so finding another one will be easy. Here are some things to consider if you need to find auto insurance after a DUI:
- Expect your insurance premiums to increase 50% or more due to the violation
- Continue the insurance even if you can't drive - this makes sense because having a lapse in coverage will cause auto insurance companies to charge you more
- Comparing rates from multiple companies can save you hundreds of dollars since they are not all charging the same premiums
- If your current provider cancels your policy the new company will not surcharge you for that, only if there is a lapse in coverage will they increase your policy.
When will my current insurance premium increase after a DUI?
Your current auto insurance company will likely not know you had a DUI violation until you need to file an SR-22. Once you notify the company you need an SR22 insurance policy they will pull your motor vehicle report which will show a DUI. At this time your rates will increase due to the violation and have a small fee to file the SR-22 if your state requires it.
Drivers do have the option to get an SR22 insurance policy from another company while maintaining their current car insurance. The advantage of doing this is the current insurance company probably won't know about the DUI until they pull the driving record. Most insurance companies only pull the driving record every couple years or during a policy change such as adding a driver or SR22 filing.