A DUI conviction results in branding the driver as “High risk” in addition to suspension of his license. The concerned driver’s insurance company will either cancel his insurance policy or escalate the premium. The insurance companies do not want to accept the burden of a high risk driver’s claims in future. Insurance premiums are calculated taking into account the driving history of the motorist besides other criteria. When the driver is categorized as high risk that means the likelihood of the driver getting involved in accidents is high leading to claims of huge amounts. Most insurance companies offer good deals with lower rates for the drivers with a clean driving record. If you get a DUI in your driving records your auto insurance premium will definitely go up.
Minimum liability insurance is required by almost all states to drive a vehicle. Having auto insurance is made compulsory by the law as the states want to ensure that every driver should be financially responsible for getting involved in any mishap on the road. When accidents occur, the damage or injury will cause huge financial loss and to by making auto insurance mandatory the DMV ensures that all drivers compensate for such losses. To ensure the safety of roads and also protect people and property DMV imposes the punishment of canceling the license of the driver. If you get your license cancelled due to DUI you must prove that you have purchased auto insurance to get your license re-instated.
Your auto insurer has to file SR22 with the DMV as proof for your having insured with them. On acceptance of SR22 the DMV will release your driver’s license. The insurance company therefore has to inform any cancellation or discontinuance of auto insurance by any individual promptly to the DMV. This added responsibility makes the insurers to hike their premium rates for the drivers with DUI.
Many leading insurance companies cancel the auto insurance policies of the DUI offenders outright. In circumstances like this, the driver has to approach a different insurance company for getting auto insurance.
Very few insurance companies will file this certificate of financial responsibility. Some insurance companies specialize in insuring DUI and other drivers with violations in their driving records. However, they will charge a ridiculously high rare for the DUI drivers as they are classified as high risk. The DUI driver can purchase the minimum liability auto insurance from one of these companies as there is no other option to get back their driving privileges. The DUI will stay in their records for years and the SR22 will be in force for 3 years. If no further violation is found, DUI will be removed from the driver’s record.