Thursday, 22 December 2011
Drinking And Driving Can Cause Insurance Rates To Skyrocket
With the Christmas holiday season upon us it’s a good time to remember that one of the main reasons for huge auto insurance rate increases in America is alcohol-related driving violations. Being convicted of driving under the influence 
UI) will usually result in a significant increase in your insurance premiums as soon as your insurer finds out about it. Based on research, the cost could typically increase between 30 and 100 per cent, but could even be higher.
The increase in premiums will depend on the state you live in. For example, the rates could go up about 30 per cent in Colorado for a DUI conviction, but in North Carolina there’s a 12-point penalty under the state’s Safe Driver Incentive Points system and premiums have been known to skyrocket by as much as 340 per cent.
Understandably, insurance companies view drinking and driving offenses as quite serious and risky. This is why you’ll likely be referred to as a high-risk driver and the rates will rise. Some insurance providers may even cancel your current policy when it expires, leaving you to find a new insurer for high-risk drivers.
The length of time your premiums will be affected depends on state laws, but you can count on paying higher rates for a DUI for at least three years. However, many states keep a DUI conviction on your record longer than just three years. You could find your rates affected for five or more years. In California, a conviction means you aren’t eligible for a safe-driver discount for a period of 10 years from the conviction date.
According to an article by foxbusiness.com, after a conviction, many states use something called an SR-22. This is basically certificate of financial responsibility for people who get their licenses back after a DUI conviction, or other serious driving offenses. If you’re required to carry the SR-22 certificate you will be notified what the minimum amount of insurance you need is and expected to purchase it.
The SR-22 certificate usually has to be carried by the driver for a specific number of years, usually anywhere between one and five. If your auto insurance is canceled while you have an SR-22, your vehicle registration and license will usually be suspended.
