Auto Insurance Quotes - The Effects Of A DUI On Your Auto Insurance Rates

The consequences of having a DUI conviction can both be humiliating and expensive. Beside the fines, attorney fees and licence suspension that you have to face, there are the more long term consequences such as the impact on your car insurance rates and coverage.

If your insurance company find out that you aren convicted of a DUI, it will deal with you in one of two ways, namely;

1. Increase in your auto insurance rate quotes;

Having a DUI ticket will definitely lead to an increase in your insurance rates, sometimes substantially, immediately your insurance company became aware of your new citation. If your premiums are raised, then count yourself lucky because that means your insurance company is ready to keep you though you will be labelled a 'high risk driver'.

2. Your Policy May Be Cancelled.

In some cases where your insurance company can no longer provide insurance coverage for you, your policy may be cancelled. Insurers cannot just cut you off in the middle of the policy term, but when your insurance policy expires, your policy will not be renewed. It is always better to check on the laws of the state where you are insured to know how your insurance company will treat your case.

Most states require DUI offenders to get a form called an SR-22 from their auto insurers. The SR-22 serves two purposes namely;

1. It makes it impossible for you to escape a DUI related traffic stop without your insurance company finding out about it.
2. It ensures that if you are convicted of DUI you must maintain adequate insurance with no lapses in coverage.

This form proves to the department of motor vehicles (DMV) that you carry liability insurance and removes your license suspension. Now your insurance company is bound by law to notify the DMV if it cancels your coverage, whereby the DMV will automatically suspend your license. The problem with this arrangement is that not all insurance companies offer SR-22 policies. In this scenario, your policy may not be renewed or it may be cancelled outright.

You may have had a policy in place before your DUI ticket, in this case, it is possible that nothing will happen to your auto insurance rates for some time, if you do not repeat the offence. The reason is that your current insurer may not find out about your DUI citation. The catch here is that insurance companies do randomly check the driving records of their customers and while checking, if your company should find out that you have a DUI conviction, they may not renew your policy at expiration or your policy may triple if they decide to retain you.

There are some high risk companies that would take you if your insurance policy is not renewed by your preferred company. These companies will put you into 'high risk driver' category and you would be required to pay higher auto insurance rates with your new SR-22 policy.

The best way to stay with your preferred company, paying a minimum premium available is to be a good and careful driver. This is better than to be DUIed and be considered as a high risk driver. A drunk driving conviction carries with it serious penalty from your car insurance company.

A simple way to avoid the embarrassment caused by a DUI and the rate increase that is associated with it is to keep your driving record clean. Be smart and do not drink while you drive. Alternatively, you can call for a taxi or find a designated driver to drive you around while you are catching fun. This will keep your auto insurance premium at a minimum and it will maintain your clean driving record.