| DUIs a Killer for Insurance Premiums |
| Written by Administrator | |
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Getting a DUI is an embarrassing and expensive ordeal. Not only will you get your name printed in the paper, spend a night in jail, pay for fines and attorneys fees, you'll also end up with higher car insurance premiums.
The reason for this is simple. If you get a DUI, whether you're a regular drinker or a casual drinker who just got unlucky one night, your insurer now perceives you as a member of a very high-risk group. About 15,000 people are killed in car accidents related to driving under the influence, and thousands more are injured in these accidents. Because of the costs created for insurers by bodily and property damage resulting from alcohol-related accidents, insurers charge folks likely to get a DUI steep premiums. If you're arrested and convicted of a DUI, your insurer will have to make a decision whether to jack up your premiums or cancel your policy. Many insurers will cancel an insured's policy if he or she is arrested and convicted on a DUI charge. For those that aren't canceled, a massive premium hike is in their immediate future. According to industry experts, a DUI can cost up to an extra $2,500 in premiums each year. The number is even higher for folks who cause a wreck when they're under the influence of drugs or alcohol. In general, if you get a DUI, you can expect to pay on average about $650 more in insurance premiums per year. While insurers don't always find out about every little speeding ticket you get, it's nearly impossible for someone convicted of a DUI to avoid the notice of his or her insurer. Rules vary from jurisdiction to jurisdiction, but in general, once someone's convicted of a DUI, he or she loses their driver's license for a time. In order to get the license back, the driver must present the state with an SR-22 form. This is basically a form verifying that the driver has insurance. This means that if you get a DUI, in order to get your license back, you have to tell your insurer about it and get the company to issue a SR-22 form stating that you're still covered by insurance. No form, no license. How much your premium increases depends on a number of factors, including the state you live in, your previous driving history, your age, your gender and other variables. In general, however, if you're male and you have previous dings on your driving record, you can expect an increase on your premium of up to 40 percent. On average, a DUI will be held against you by your insurer for about three to five years. All in all, between court fees and the impact on your insurance, a DUI can cost you thousands of dollars which you're required to pay if you wish to operate a motorvehicle again. Getting a DUI doesn't have to be the end of the world, however. If you've gotten a DUI, there are a number of things you may be able to do to prevent it from significantly increasing your car insurance premiums.
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