Driving under the influence (DUI) and driving while intoxicated (DWI) are serious offenses that can have long-lasting consequences. Apart from legal penalties, one major area that’s significantly impacted by DUI and DWI charges is auto insurance.
Understanding how these charges affect auto insurance coverage is crucial for drivers who want to make informed decisions and mitigate potential financial burdens. In this post, we will explore the differences between DUI and DWI, delve into their respective consequences, and discuss how they impact your auto insurance.
UNDERSTANDING DUI AND DWI: DIFFERENCES & CHARGES
DUI (Driving Under the Influence)
DUI pertains to the operation of a motor vehicle while influenced by alcohol drugs, including prescription or over-the-counter medications. It's important to note that a driver can face a DUI charge even if their Blood Alcohol Concentration (BAC) is below the legal limit — which varies by jurisdiction but is commonly set at 0.08%.
Consequences of a DUI conviction may include substantial fines, license suspension or revocation, mandatory alcohol education programs, and potential incarceration.
DWI (Driving While Intoxicated or Impaired)
DWI, often referred to as driving while intoxicated or impaired, may use different terminology depending on the jurisdiction, but shares similarities with DUI. Like DUI, DWI can involve operating a vehicle while impaired by alcohol, drugs, or prescription medications. However, depending on your state’s laws, it could also include impairment, such as driving while tired.
The legal BAC limit for DWI is generally set at 0.08%, mirroring DUI regulations if substances are involved. Penalties for DWI are akin to those for DUI and can result in fines, license suspension or revocation, mandatory educational programs, and the possibility of imprisonment.
THE IMPACT ON AUTO INSURANCE
Insurance Companies' Perspective
Insurance companies view DUI and DWI charges as high-risk behavior. They consider individuals with such convictions more likely to be involved in accidents, leading to higher claim amounts.
Moreover, there’s an increased likelihood of repeat offenses or subsequent violations. As a result, insurance providers adjust their rates and coverage policies accordingly.
Premium Increase
Auto insurance premiums are determined based on various factors — including driving history, age, location, and previous claims. However, a DUI or DWI conviction significantly impacts these premium calculations.
Since insurance providers perceive drivers with DUI or DWI charges as higher risks, they consequently raise their premiums to offset that risk. The increase can vary depending on the severity of the offense, the driver's history, and the insurer's policies. In some cases, insurers may even choose to cancel the policy altogether.
For instance, let's say a driver's auto insurance premium is $1,000 per year before a DUI conviction. After the conviction, they might face a premium increase of up to 50% or more. This means their new premium could be $1,500 or higher. These premium increases can be long-lasting, often remaining in effect for several years.
SR-22 Requirement
In many states, individuals convicted of DUI or DWI are required to file an SR-22 form as proof of financial responsibility. An SR-22 is a certificate provided by an insurance company that demonstrates the driver has the minimum liability coverage required by law.
Filing an SR-22 typically carries an additional cost, involving administrative fees from the insurance provider and the state. This added expense further compounds the financial impact of a DUI or DWI conviction.
What’s more: the duration of the SR-22 requirement varies by state, but can typically span three to five years. Failure to maintain the SR-22 can result in license suspension or revocation, and it becomes even more challenging and expensive to secure auto insurance coverage in the future.
3 STEPS TO MINIMIZE THE IMPACT OF A DUI OR DWI
While a DUI or DWI conviction has significant implications for auto insurance rates, there are steps individuals can take to mitigate the impact:
1. Seek Legal Advice
It’s crucial to consult with a lawyer specializing in these cases if charged with DUI or DWI. A legal professional can help navigate the legal process, understand local laws, and explore potential defense strategies.
In some instances, they may be able to negotiate reduced charges or alternative sentencing options, which can have a positive impact on insurance rates.
2. Consider Defensive Driving Courses
Completing approved defensive driving courses can demonstrate responsibility and a commitment to safe driving practices. Some insurance providers offer premium discounts for drivers who have completed these courses.
By voluntarily enrolling in such programs, individuals may be able to offset some of the premium increases resulting from a DUI or DWI conviction.
3. Shop for Insurance
After a DUI or DWI conviction, it may be necessary to explore different auto insurance options. Some insurance providers specialize in covering high-risk drivers or those with a history of DUI/DWI charges.
Conducting thorough research, comparing quotes, and seeking out companies that cater to these circumstances can help individuals find suitable coverage at more affordable rates.
Understanding the distinction between DUI and DWI charges is essential for drivers, as it not only carries legal consequences but also has a significant impact on auto insurance rates. Insurance companies consider DUI and DWI convictions as high-risk behavior, leading to increased premiums and potential policy cancellations.
Drivers should seek legal advice, consider defensive driving courses, and explore different insurance options to minimize the financial burden. By taking proactive steps, drivers can navigate the aftermath of a DUI or DWI conviction with greater awareness and make informed decisions to mitigate its long-term impact on their auto insurance coverage.
If you need help finding the best car insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.
