Damico & Stockstill, Attorneys at Law

80 Years Of Combined Trial Experience

How DUI convictions impact auto insurance

On Behalf of | Apr 10, 2023 | Drunk Driving |

Driving under the influence is never a good idea. In addition to making Louisiana’s highways even more dangerous, DUI convictions also present a host of financial issues. Not only can a DUI conviction lead to heavy fines, but you will also notice an increase in your car insurance rates.

Can car insurance companies cancel coverage?

Auto insurance companies reserve the right to cancel the policies of members who receive a DUI conviction. While it’s rare for an auto insurance company to cancel coverage after a single DUI, they are within their rights to do so. Insurance companies that opt for this route typically let the current coverage expire and then refuse to let the member renew.

Increase in insurance rates

According to studies, Louisiana drivers pay somewhere between $800 and $2,900 per year for auto insurance coverage. If you receive a DUI conviction, you should expect those rates to go up.

If you don’t see an increase in your monthly car insurance rates immediately after your arrest, don’t assume that your insurance company chose to let you get by with it. Insurance companies typically wait until your renewal date to introduce your new pricing. Insurance rates typically increase by around 80% following a drunk driving conviction.

How will my insurance find out?

One of the most common questions that drivers ask about DUI convictions involves how their insurance company finds out about it. While there is no law stating that you must alert your insurance following a DUI, most states require drivers to fill out an SR-22 form following their conviction. Requesting this form alerts your insurance company about the incident.

Most states suspend a driver’s license for 90 days following a DUI. They often require other steps, including the installation of a breathalyzer on the car’s ignition system. These increased costs and added inconveniences should motivate drivers to avoid driving under the influence.