How a DWI Conviction Affects your Car Insurance

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How a DWI Conviction Affects your Car Insurance

May 31, 2012
Author: Chris M. Alexander

If you are involved in a DWI conviction, your car insurance rates are likely to increase multifold before you can drive again. Automobile insurance rates will increase by at least three percent. You will also have to consider the SR22 insurance.

SR22 Insurance Laws

If you are convicted for a DWI, you will be given an SR22 insurance policy which is considered to be a high-risk auto insurance policy. This policy is offered as a guarantee by insurance companies so that you are able to pay the basic mandatory liability insurance for a specific period. SR22 insurance will be offered to you for a period of 3 years after you are convicted for drunk driving. You should however conduct adequate research to get a good deal from insurance providers so that you do not end up paying very high interest rates.

The consequences of drunk driving are different in different states; however in all the states, if you are convicted for a DWI offense, your driving privileges will be suspended for about 30 days to a year, even if it is your first offense. To get your driving license and privileges back, you need to fill an SR22 form provided by the licensing agency. This will prove that you have motor vehicle liability insurance. According to SR-22 laws, the insurance company needs to inform the licensing agency, which is usually Department of Motor Vehicles, if the policy is canceled, terminated or lapsed.

DWI Conviction and Car Insurance

If you approach a car insurance agency to get an SR-22 form, you are considered to be a `high-risk’ car owner and driver because of which your insurance premium increases multifold. Depending on the state where you apply for car insurance your insurance rates will increase for at least three years if it is your first offense. The duration increases with subsequent DWI convictions.

Penalties are more severe for special cases like when:

Someone is injured,
A child is in the vehicle,
Your BAC is very high and exceeds the legal limit,
You are an underage driver.

In about 50 states, a BAC of .08 is considered to be the legal limit and if you have higher BAC, then you will be convicted. In about 40 states, penalties for a DUI conviction are doubled if you are tested to have very high BAC level (about.15 or .20).

In order to reinstate your driving license when your suspension is over, you should show that you have a car insurance policy. In most states, an SR22 proof of insurance form can verify that you are legally insured. To reinstate your license you should take the following steps with the insurance company:

Understand how your DWI can affect your insurance
Have a DWI car insurance plan
Fill an SR22 insurance form verifying you are insured
Submit the SR22 insurance form to your DMV

As they say, prevention is better than cure; to avoid increase in insurance premiums due to DWI conviction, simply avoid driving after you’ve had a couple of drinks.

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