High Risk Auto Insurance – DUI Insurance

High-Risk Insurance After DUI

Many factors can cause a person to have to buy high-risk insurance. For any person convicted of DUI, the extreme increase in the cost of DUI car insurance is already known. Depending on other issues, such as the State WHERE the car is insured, any other negative driving history, age of the person requesting car insurance after DUI, and the applicant’s credit history affect car insurance quotes.

Major insurance companies often dodge high-risk drivers.

Big companies like Allstate, State Farm, GEICO, and Progressive may have substandard “sister” companies to whom they redirect such applications. Other high-risk auto insurance companies SEEK persons needing DUI insurance, once cancelled by a standard auto insurer.

High-risk auto insurance companies offer DUI insurance.

Several high-risk auto insurance companies offer DUI car insurance, as well as assigned risk policies that may be mandated by state laws. Each state has statutes that specify how state-licensed auto insurers must take some of these poor-risk motorists. Finding cheap high-risk auto insurance may also mean that you are relegated to only minimum coverage amounts under state insurance laws.

How high-risk drivers are rated after a DUI

Because insurance companies utilize actuaries to calculate their risk of having to pay a collision loss or possible wrongful death claim, another factor in trying to find insurance with DUI convictions in your past is WHERE you live. Certain cities are known for having a higher number of claims, due to roadway design and condition and other factors.

To keep high-risk insurance quotes lower, change cars.

Furthermore, if you are driving a vehicle model that is statistically proven to have a high incidence of claims for car wrecks or accidents, you will not get the cheapest DUI Insurance. High-performance vehicles and cars made with fiberglass (e.g., Corvette) will cost more to insure. So, type of vehicle matters.

When will the requirement to pay for high risk insurance change?

A high-risk driver can escape the massive cost of high risk auto insurance after several years have passed without any claims. At that point, better coverage and better liability limits may be affordable. A common time lapse period of 3 years applies in most states.

Other than intoxicated driving convictions, other types of high-risk drivers need insurance.

Beyond DUI triggering a loss of standard car insurance, other motorists with poor driving histories can cause a person to be a high-risk driver. The common “red flags” for an insurance company (beyond persons convicted of driving under the influence) include:

  1. Multiple car accidents
  2. Multiple speeding and/or reckless driving tickets
  3. Being a new driver, since actuarial numbers show a very high likelihood of crashes for recently-licensed, first-time motorists
  4. Bad credit signals an insurance carrier that the person may be irresponsible, and therefore likely to be a bad insurance risk.

Your state may mandate assigned risk coverage.

Each company operating within a particular state is obliged to conform to that state’s minimum coverage for motorists insured in that jurisdiction. These laws can affect both insurance rates as well as how quickly speeding tickets and a conviction for DUI will boost your premiums, or cancel your policy. For example, South Carolina has an “integrated” auto insurance law wherein ANY traffic violation pushes up your monthly payment. A DUI can boost it 600%.

State laws affect DUI insurance cost.

Also, a state like North Carolina has civil litigation laws relating to personal injury cases that strongly favor insurance companies. It would be logical to think that car insurance quotes would be much better in NC, but this is not the case. All it means is that a seriously injured person has less chance to recover damages for personal injury in NC than in a state like California that favors the injured or deceased motorist, who was not the cause of the accident.

Insurance companies prefer to ensure low-risk drivers.

Because no insurance company seeking to make high profits likes to accept high-risk drivers, state laws force the insurers within their state to “carry” some risky drivers. In a rotation, these state-licensed car insurance companies take drivers with poor driving histories, and drivers who pose a high risk of new claims.

What is SR-22 insurance?

A common phrase in the high-risk auto insurance business is SR-22. This phrase often applies to assigned risk motorists, but is really a FORM that is issued by the insurance company, to show the state that this high-risk driver has valid insurance. Granted, it is usually the bare minimum coverage, but it offers some financial responsibility to those who may be injured or killed by the high-risk driver.

State insurance laws may not offer much protection.

Most responsible states mandate some reasonable amount of coverage, such as “25/50”, meaning that up to $25,000 per injured person is available, or a maximum of $50,000 if multiple claimants exist. This is what Georgia requires for liability coverage. Yet, Florida has a low limit of $10,000, and nearly 25% of all drivers in Florida lack any liability insurance. This is an unacceptable financial responsibility limit.

Insure yourself and your family against uninsured motorists.

By having your own higher liability limits, and corresponding uninsured motorist coverage or “underinsured” motorist coverage, a responsible motorist can insure against the risk of inadequate insurance coverage when hit by a high-risk driver. This extra cost is merely a protection for those who cannot afford to rely on substandard DUI car insurance being sufficient to pay a catastrophic claim against a high-risk motorist who causes a collision.