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What is the Immediate Impact of a DUI Charge on My Auto Insurance?
A common question most people ask when they’re arrested for a DUI offense is what effect the charges will have on their auto insurance rates. Insurance providers consider DUI convictions when setting policy rates, often leading to a rate hike. Understanding how this process works is crucial to help you evaluate your options if charged with a DUI. Skilled legal experts from a San Bernardino law firm can provide more insights into the intricacies.
Lawyers explain that the immediate effects of a DUI charge on your auto insurance include the following:
- A hike in the insurance premium rates: If you’re convicted of a DUI, there is a high likelihood that your auto insurance premiums will skyrocket. Providers categorize DUI offenses as high-risk behavior, leading to higher rates.
- SR-22 requirement: If you’re convicted of a DUI in California, the law requires you to acquire an SR-22 Form, a certificate of financial responsibility. Your auto insurance provider will file it with the Department of Motor Vehicles to show that you have the minimum liability insurance required by law.
Must I Report a DUI to My Insurer?
DUI lawyers in San Bernardino often get the question of whether a driver is obligated to report a DUI to their insurance company. While you don’t have to notify your insurer immediately following a DUI arrest, your insurer will eventually learn of the offense if you get a conviction. Insurance companies run a DMV record when renewing a policy; the DUI record will show.
The insurer may also learn about the DUI if the offense involved injury to a third party who reports the incident in pursuit of compensation. Besides, insurance companies may ask drivers about DUI convictions when issuing a new policy or renewing an existing one. The applications are usually submitted under penalty of perjury, and you must answer honestly.
What is Supplemental Insurance?
Once you’re convicted of a DUI or your license is suspended due to a DUI charge, you will be required to obtain SR-22 supplemental insurance. It is a certificate of insurance that verifies you’re in compliance with California’s minimum auto insurance requirements. The SR-22 law requires that for any accident, your liability coverage will compensate the victims up to:
- $15,000 for the death or bodily injury of another person
- $30,000 for the wrongful death or injury of all people injured or killed in an accident
- $5,000 for property damage
You must obtain the certificate before you can have your driving privileges reinstated by the Department of Motor Vehicles. You can obtain the SR-22 from your insurance provider or another company, which remains on your DMV record for at least three years. If you let your insurance lapse, the certificate will be revoked.
Can My Insurance Provider Cancel My Policy After a DUI?
The law in California makes it illegal for insurers to cancel automobile insurance policies before the expiration of the term, even after a DUI. However, the provider can take the following action once the policy comes up for renewal:
- Cancel the policy
- Incorporate new terms for the renewal, such as a higher premium
San Bernardino DUI lawyers add that the law requires insurers who renew policies for drivers with a DUI to remove the “good driver discount.”
How Much Will My Car Insurance Rates Increase After a DUI?
Driving while intoxicated can increase your insurance rates tremendously, sometimes by over 100%. The premiums may double or triple if you have multiple DUI offenses, but the increase depends on a specific insurance company based on your risk level.
Factors Insurers Consider When Determining Risk
San Bernardino DUI attorneys highlight that insurance companies account for many factors when calculating premiums, including the following:
- Age
- Gender
- Marital status
- Residence
- Homeowner or renter status
- Driving experience and driving history
Insurance companies often hike premium rates for traffic violations, racing, reckless driving, at-fault accidents, and DUIs, which often have the highest increases. You can avoid paying the higher premiums by consulting aggressive DUI lawyers in California. They can formulate a solid defense strategy to help you beat the charges.
How Long Will It Take to Get Normal Insurance Rates After a DUI?
A DUI conviction can affect your premium rates or ability to secure standard coverage for an extended period. In some cases, it can take up to ten years for your insurance rates to decrease after a DUI. Insurance companies review applicant’s driving records when processing insurance applications. So, a DUI record can flag you as a high-risk applicant, hiking your insurance rates.
Nonetheless, some insurance providers start decreasing the rates within three to five years after a DUI conviction. They might consider how much time has elapsed since the last DUI conviction, with a clean driving record since the previous offense indicating you’re no longer a high-risk client. In most cases, you must pay higher insurance premiums to drive a car under the law.
A Skilled DUI Lawyer Unmasking Auto Insurance Rates After a DUI Offense
Being convicted of a DUI offense in California can form the basis of hiked insurance premium rates. The reason is that insurance providers view drivers with a DUI charge as high risk, and most may be unwilling to work with you. It can take as long as ten years before your auto insurance premiums can return to the regular rate.
Skilled DUI lawyers in San Bernardino can help you fight the charges to reduce the likelihood of paying higher auto insurance premiums. Patrick Silva, Attorneys at Law, has a knowledgeable team to investigate your case and help you create a solid defense strategy against the charges. We believe your past mistakes shouldn’t define your future. Call us at 909-500-4819 to schedule a FREE consultation.
