How Drunk Driving Affects Your Insurance Coverage & Rates

Drunk driving is a serious offense that can have severe consequences for your driving record, your criminal record, and your wallet. According to the National Highway Traffic Safety Administration (NHTSA), 10,142 people died in alcohol-impaired driving crashes in 2019, accounting for 28 percent of all traffic fatalities in the U.S.

But the human cost isn’t the only price you pay for drunk driving. You also face legal penalties, which could include fines, jail time, license suspension, and mandatory installation of an ignition interlock device (IID) on your vehicle. 

If you’ve been convicted of driving under the influence (DUI), you may be wondering how it will affect your auto insurance. Keep reading to learn how a DUI conviction can impact your car insurance coverage and rates.

Damages to Others Are Covered

In most states, including California, your insurance company is required to cover any damages or injuries you cause while driving under the influence of alcohol or drugs, as long as you have liability insurance. This means if you hit another car or a pedestrian or damage someone’s property, your insurance will pay for the other involved parties’ medical bills and repairs, up to your policy limits.

While liability insurance covers the damages and injuries you cause to others while driving drunk, it doesn’t cover your own losses. If you want to be reimbursed for your medical expenses or vehicle repairs after a DUI accident, you’ll need other types of coverage, such as personal injury protection (PIP), medical payments (MedPay), collision, or comprehensive.

However, even if you have these coverages, your insurer may not pay for your claims if they can prove you were grossly negligent or reckless when driving under the influence. For example, if you were speeding excessively, running red lights, or driving on the wrong side of the road while drunk, your insurer may argue you intentionally put yourself and others in danger and therefore forfeit your right to coverage.

Your Coverage May Be Canceled or Restricted

In addition to causing you to have to pay higher rates, a DUI conviction can also affect your car insurance coverage in California. Depending on the severity of the offense and the policy of your insurance company, you may face one of the following scenarios:

• Your insurance company may cancel or decline to renew your policy – This means they won’t continue to provide coverage for you after your current policy term expires. This can happen if your insurance company has a strict policy against insuring drivers with DUI convictions or if you have multiple DUIs or other violations on your record.
• Your insurance company may require you to file an SR-22 certificate – This is a document that proves you have the minimum liability insurance required by California law ($25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $20,000 for property damage per accident). You need to file an SR-22 certificate with the DMV if you’ve been convicted of a DUI, driving without insurance, or reckless driving. You need to maintain this certificate for three years after the suspension or revocation of your license. Failing to do so can result in further penalties.
• Your insurance company may offer you a restricted policy – This means they’ll provide limited coverage for you under certain conditions, such as driving only to and from work or school, or driving only during certain hours. This can happen if your insurance company wants to keep you as a customer but also wants to reduce their exposure to risk.

Your Rates Will Increase

Car insurance companies charge more for drivers with DUI convictions because they’re considered high-risk drivers who are more likely to cause accidents and file claims. According to WalletHub, a DUI conviction can increase your car insurance rates by about 165 percent in California, which is more than twice the national average of 65 percent. This means if you were paying $1,000 per year for car insurance before the DUI, you could end up paying $2,650 per year after the DUI. This increase can last for seven years, which is how long a DUI stays on your driving record in California. 

It’s Possible to Find Affordable Car Insurance After a DUI Conviction

If you’ve been convicted of a DUI in California, you may feel hopeless about finding affordable car insurance. However, there are some steps you can take to lower your rates and improve your situation:

• Shop around for different quotes – Not all car insurance companies treat DUI convictions the same way. Some may charge much higher rates than others, while some may offer discounts or incentives for drivers who complete certain programs or maintain clean records. 
• Complete a DUI program or course – Depending on the circumstances of your case, the court may order you to complete a DUI program or course as part of your sentence. This can teach you about the dangers and consequences of drunk driving as well as how to prevent it in the future. Completing a DUI program or course can also help you reduce your license suspension period and qualify for a restricted license. Some insurance companies may also offer discounts or lower rates for drivers who complete such programs or courses.
• Maintain a good driving record – The best way to lower your car insurance rates after a DUI conviction is to avoid any further violations or accidents on your record. The longer you drive without any incidents, the more likely your rates will decrease over time. You should also practice safe driving habits, such as obeying traffic laws, wearing seat belts, avoiding distractions, and driving defensively.

If you have a DUI and need reliable auto insurance, 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. San Diego residents can call (800) 719-9972 today to receive a free quote from one of our friendly agents.