DUI Insurance Rates & SR-22 Insurance
When you purchase a car or motorcycle, one of the first things that you have to have before you can ever drive the roads is insurance. Auto insurance specifically is paid on a monthly basis in case you ever have an accident and need funds to cover the costs, or if your car is ever stolen. To most people, car insurance is an easy payment each month. However, if you are convicted of a DUI offense, car insurance isn't just car insurance anymore.
In each state, it's necessary by law that you can prove that your car has insurance. Whenever a police officer pulls a car over, he will immediately ask for proof of insurance and identification. While car insurance seems like something minute, it isn't, and it becomes even more important to those people who are caught driving under the influence. When convicted with a DUI, that person will have to deal with many different penalties. These include a suspended license, court fees, and yes, higher insurance rates.
In extremely bad cases, the offender's insurance company may even cancel the car insurance policy. Because your motor vehicle record is checked regularly by the company that provides you with car insurance, it's common that they will find out about your DUI charges. However, sometimes insurance companies only check within a certain amount of months or years, and your DUI offense could easily be overlooked.
But, in most cases, DUI offenses are noticed by your insurance company, or your state's DMV will contact your insurance company to notify them. This will usually lead to higher insurance rates and possibly even a complete coverage cancellation.
Why would an insurance company charge more?
When someone is charged with a DUI offense he/she is labeled as being a high-risk driver. High-risk drivers also include young drivers, first-time drivers, and drivers who have been in a lot of accidents. But for those who are found to be driving under the influence, they pose a threat to other commuters around them because they could be a repeat offended. Those driving under the influence are more likely to get into an automobile accident.
A DUI offense can sometimes bring about doubled insurance rates, and sometimes these rates can even be tripled. If this happens to you, know that you aren't stuck paying this high rate for months and months.
In some cases, your insurance company will have to give your local DMV an SR-22 form. The SR-22 form is able to remove your license suspension because you are able to prove that you do in fact have car insurance. This form also states that the company must first notify your local DMV before cancelling your insurance coverage.
