Can I buy car insurance after a DUI?

Driving under the influence of alcohol is dangerous and illegal. It can also cause car insurance premiums to skyrocket. Nevertheless, sometimes, even the most responsible drivers can make a mistake. If you’ve ever been convicted of a DUI, it may be difficult to obtain low-cost car insurance; in some cases, you may have a difficult time finding a policy at all. Luckily, there are several options for people who have been convicted of a DUI.

Will my car insurance policy be canceled after a DUI?

Your car insurance policy will not always be canceled after a DUI, but it is very likely that it will be. Depending on your state’s laws, a DUI conviction could lead to jail time and a suspended license. At the very least, your car insurance company will probably drop your coverage until your license is reinstated. If you are not the main policyholder, you may be excluded from the policy until you are able to drive legally once more.

Whenever the policy is canceled, your car insurance company will send you notification that the coverage has been dropped. This paperwork will explain the cause of your cancellation and provide a number to call with any questions.

If your policy is not canceled, your rates will be affected. You will receive a point against your driving record; depending on the details of the situation, you may receive additional points for the incident, such as if you were involved in an accident due to driving under the influence. Each point could take up to seven years to drop off your driving record and will continue to impact your car insurance until that time.

Any time you receive a quote from a car insurance company, that company will be able to see your driving history and know what each point against your record was for.

High-Risk Car Insurance

Some car insurance companies specialize in high-risk auto insurance. This type of insurance provides coverage to individuals who would otherwise be unable to receive a policy from another company. High-risk insurance is usually more expensive than a regular auto policy, and may not provide the same coverage.

Whenever you purchase high-risk insurance, you may be able to convert the policy to a standard policy after several years of safe driving. Most high-risk carriers also provide standard auto policies as well, so you can transition into a regular policy without giving up your agent or changing companies.

Assigned Risk Policies

In some situations, a high-risk carrier is not able to provide insurance for your vehicle. In this case, you may need to obtain coverage from an assigned risk policy. Essentially, all insurance companies share the financial risk for these policies; funds for this type of insurance are pooled from all companies, and you will be assigned a specific company to handle your claims or other services.

This differs from other types of insurance in that the company handling your claim is not the one underwriting the policy. Additionally, assigned risk insurance usually does not come with first-party coverage such as collision and comprehensive. The only way you can obtain full coverage insurance for an assigned risk policy is if you have a lien holder on your vehicle that requires you to keep full coverage; otherwise, you will only be able to buy a liability policy.

Obtaining Normal Insurance Once More

After several years of safe driving, you will begin to repair the damage to your driving history that the DUI has caused. First, you must take the steps necessary to reinstate your license. Once you have a license and have obtained some sort of high-risk or assigned risk insurance policy, you can begin to focus on your driving until you can qualify for a regular policy.

You can speak with your insurance agent to determine what you can do to qualify for cheaper car insurance. You may be able to get better rates if you agree to a driver’s education course in addition to whatever programs the state might require for your DUI parole. You might also be able to obtain cheaper insurance if you agree to install a Breathalyzer device in your vehicle.

Of course, the easiest way to keep your rates low is to focus on safe driving. Always have a designated driver available, and hire a cab if you are unable to find another driver. Avoiding driving under the influence not only prevents accidents and keeps your insurance premiums low, it also keeps the road safe for you and other drivers.

SR-22/FR-44 Form Requirement

Your state or a court might order you to get an SR-22 Form after a DUI conviction. An SR-22 is not insurance. It is a form filed with your state that proves you carry the state’s minimum car liability insurance requirements. This form might also be called “SR-44,” “SR-22 bond” or a “certificate of financial responsibility.”  The SR-22 requirement varies by state, but you’ll typically need to retain your SR-22 and car insurance policy for at least three years. If you fail to do so, you could have your license suspended until your insurance is reinstated. You may be able to buy a non-owner car insurance policy to meet this requirement if you no longer have a vehicle.

Case Studies: Car Insurance After a DUI

Case Study 1: High-Risk Car Insurance

John was convicted of a DUI last year, and his car insurance policy was canceled by his previous insurer. As a high-risk driver, John struggled to find affordable coverage. He turned to a specialized high-risk auto insurance company that offers coverage to individuals with DUI convictions.

While the policy was more expensive compared to regular auto insurance, it provided the necessary coverage. John was informed that after several years of maintaining a clean driving record, he could transition to a standard policy with better rates.

Case Study 2: Assigned Risk Policies

Emily, who had a DUI conviction, was unable to obtain coverage from a high-risk insurer due to her specific circumstances. In such cases, individuals may need to obtain coverage from an assigned risk policy. Emily was assigned a specific insurance company that would handle her claims and services.

However, assigned risk insurance usually only provides liability coverage and does not include first-party coverage such as collision and comprehensive. Emily explored options to meet the assigned risk policy’s requirements until she could qualify for a regular insurance policy.

Case Study 3: SR-22/FR-44 Form Requirement

After Mike’s DUI conviction, his state required him to obtain an SR-22 Form, also known as an SR-44 or a certificate of financial responsibility. This form is not insurance itself but demonstrates that the driver carries the state’s minimum car liability insurance requirements.

Mike had to retain the SR-22 and car insurance policy for at least three years. Failure to do so could result in a suspended license. Mike opted for a non-owner car insurance policy since he no longer owned a vehicle but still needed to meet the SR-22 requirement.

The Bottom Line 

Insurance rates can make it hard to buy a car after a drunk driving conviction.

But even though you have a DUI on the DMV’s records, that doesn’t mean you aren’t eligible for discounts such as vehicle safety features discounts, anti-thefts discounts, occupational discounts and payment-in-full discounts One of the best discounts you get has nothing to do with how good your driving record is.

You can also switch insurance companies. Not all insurers price drivers with a DUI the same. It’s a good idea to compare car insurance quotes from multiple insurers to see if you can find better rates.