How a DUI or DWI Can Affect Your Car Insurance

Car insurance can protect you financially while you're driving, and almost every state requires it. The cost of your insurance is determined by a number of factors, including your driving record. If you are convicted of driving under the influence (DUI) or driving while intoxicated (DWI), your insurance rates may increase. You can also take a few steps to potentially save money.

DUI, DWI, and Your Driving Record

A DUI or DWI conviction typically indicates that you were found to be driving under the influence of alcohol and/or other substances in violation of your state's laws. Other substances include illegal drugs, prescription drugs, and over-the-counter medications. Some states may classify household chemicals used as inhalants, such as paint thinner or glue, as well.

When a driver is convicted of a DUI or DWI offense, the penalties imposed by each state vary. In general, the more DUI or DWI convictions you have, the harsher the penalties. However, you can usually expect to be fined and have your license temporarily suspended or revoked for a DUI or DWI. You may also be required to complete a safe driving course.

How a DUI or DWI Affects Costs and Coverage

If your driver's license is suspended or revoked as a result of a DUI, your insurer may drop you or refuse to renew your policy when the time comes. You may also have difficulty obtaining new coverage.

Depending on your state, a conviction can stay on your driving record for up to ten years, though a few states keep them for life.

In general, if you have a DUI on your record, you can expect to pay more for car insurance. How much more depends on a number of factors, including:

  • How your insurance company evaluates risk for DUI drivers
  • Whether this is your first DUI or a subsequent offense,
  • How many DUIs/DWIs do you have on your record?
  • Your age
  • How long has it been since the DUI offense was added to your driving record?
  • Your overall driving history (number of accidents, number of speeding tickets, etc.)

If you need to obtain new insurance coverage as a result of a DUI conviction, you must ensure that you meet the coverage requirements in your state. Except in New Hampshire, this means carrying at least the bare minimum of liability insurance. You must specifically meet coverage requirements for:

  • Bodily injury liability per person (BI)
  • Bodily injury liability per accident
  • Property damage liability (PD)

If you are at fault in an accident, bodily injury liability coverage pays for medical expenses incurred by others. If you are responsible, property damage liability coverage will pay for repairs to someone else's vehicle or other property.

Minimum liability coverage requirements vary by state, but you should have at least $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability coverage per accident, and $25,000 in property damage coverage.

Consider whether you need other types of insurance in addition to liability coverage. Some states, for example, may require you to have personal injury protection (PIP) or underinsured/uninsured motorist coverage. If you financed your vehicle, your lender may also require you to have collision and/or comprehensive coverage to cover any repairs that are required. If you have a financed vehicle and still owe money on it, you should consider purchasing gap insurance.

SR-22 Coverage May Be Required

When applying for car insurance after a DUI conviction, you may be required to provide an SR-22 certificate in addition to liability coverage. This certificate essentially serves as proof of minimum liability insurance coverage and demonstrates that you are financially capable of bearing financial responsibility for any accidents in which you may be involved.

SR-22 insurance is not required in all states or situations. However, in general, you may need it if:

  • You were convicted of DUI/DWI.
  • You have a long list of moving violations on your driving record.
  • Your driving privileges have been suspended or revoked.

If your state requires you to have SR-22 coverage in order to have your suspended license reinstated following a DUI, you may be able to obtain it through your car insurance company. Remember that in order to obtain an SR-22 certificate, you must first have minimum liability coverage in place. A fee may also be required to have a suspended license reinstated.

Your insurance company will report this certificate to the state insurance department once you have it. This is required for you to be able to legally drive. The length of time you must keep SR-22 coverage on your insurance until it can be removed varies by state.

How to Save on Insurance After a DUI 

To begin, shop around and compare rates from various car insurance companies. It's possible that your current insurer is the best option, but another insurer may offer better rates. Inform them about your driving record and whether you require SR-22 coverage in addition to liability insurance.

Next, inquire about any discounts that may be available to you that could reduce your car insurance premiums. For example, if you have not received any additional traffic violations since your DUI, you may be eligible for a good driver discount. Alternatively, you may be able to receive a discount if you combine your car insurance with your homeowners or renters policy with the same insurance company.

Raising your policy's deductibles is another way to save money. A higher deductible will result in lower premiums, but it will also require you to pay more out of pocket if you are involved in an accident. So make sure you have enough money on hand just in case.