Should You Tell Your Car Insurance Provider about a DUI?

Honesty and transparency should always come first when operating a vehicle, which includes contracts or other legal agreements you have with lenders and insurance companies. Dishonesty could lead to serious consequences, such as policy cancellation. Continue reading to learn more about how a DUI could impact your insurance policy when it’s not reported to your insurer.

Policy Violation

One reason drivers bypass informing their providers of this type of incident is the potential rise in coverage costs. Although you’re not legally required to report a DUI in most states, including California, it’s always a good idea to do so. The terms outlined in your insurance contract determine what occurs when you fail to report the incident. Denial of coverage and legal consequences, such as jail time or fines, could be the repercussions.

Cancellation

Although California prohibits an insurance provider from cancelling your service mid-term after the DUI takes place, the provider has the right to cancel your auto or motorcycle insurance policy if you fail to report the incident. Withholding the information is considered fraud.

Even if the Department of Motor Vehicles or local authorities don’t contact your insurer, a DUI conviction could remain on your driving record for up to ten years and almost certainly will be discovered, especially when it’s time to renew your policy.

An insurance provider also has the right to review your driving record at any time during the contract. Your insurer could learn of the situation if an anonymous tip were revealed to the office regarding your DUI, whether it comes from other drivers, family members, or a business.

How a provider responds to the newly found information will vary, but accusing you of fraud or labeling you as an even riskier customer may result in immediate cancellation.

Claim Denial

Failing to report an incident allows a provider to deny claims. Paying for damages to your vehicle, other property, or injuries could be expensive. You want to ensure you can meet those costs for this situation or any other setbacks during your policy terms.

Even if you have the finances available to cover the costs of the damages or you choose to continue operating your vehicle without making repairs or replacements, you should still report the incident. Having the failure to report listed on your record could make obtaining coverage from other providers challenging, putting you in a difficult situation, as operating your car without coverage is illegal.

Learn More

It’s best to know as much about your insurance provider as possible, including how DUIs are handled. However, if these factors aren’t discussed before the incident, you can learn more about the provider going forward, allowing you to determine if you want to renew coverage or select an alternative company.

Some insurance companies will work with you, offering different tips and programs to help you avoid a very costly increase upon renewal. When speaking with an insurance company, you should always ask how a DUI conviction impacts your coverage.

If they have DUIs and need reliable auto insurance, Chula Vista drivers should get in touch with Altra Insurance Services. Car insurance isn’t all we provide. We also offer home and commercial insurance as well as surety bonds. Call us today to receive a free quote from one of our friendly agents.