DWI Auto Insurance Effects
If convicted of DWI, your auto insurance rates may be affected, perhaps not immediately. Insurance companies check your driving record about once every 3 years. They also check it when you apply for a new policy or you make changes to existing policies. These changes include adding or subtracting a vehicle, adding or subtracting a driver, or making a claim.
DWI auto insurance convictions might go unnoticed, at least for a while. However, when your insurer learns about a DWI conviction, your auto insurance policy premiums can increase dramatically. You could even face a policy cancellation or refusal to renew the policy.
DWI auto insurance companies deal with DWI convictions in two fashions. First, you'll be labeled a high-risk driver and as a result your insurance rates will increase. If that happens, you will probably be required to file proof of insurance for at least three to five years with your state's DMV (Department of Motor Vehicles).
Your DWI auto insurance company is required to submit to the DMV an SR-22 form. This form is required in order to lift your driver's license suspension. Additionally, an SR-22 form requires that the DWI auto insurance company should notify the DMV if they cancel your insurance for any reason.
Most states require DWI convicts to file an SR-22 from. If you live in such a state, your DWI auto insurance company WILL learn of your conviction.
When your DWI auto insurance company becomes aware of you conviction, they might automatically cancel your policy. The cancellation might occur immediately or at the end of the policy period. Some states don't allow for the mid-term policy coverage cancellation. Ask your state's Department of Insurance how cancellations are handled in your state.
Your insurer will issue you a notice explaining the policy cancellation. This allows you to locate another DWI auto insurance company which provides coverage to convicted DWI customers. Note: some companies will not offer SR-22 policies.
Possibly (but not likely) your insurance carrier won't ever learn of your DWI conviction. This is more probably if you are not required to file an SR-22 form.
An Insurance Research Council study in 2002 found that about 25% of DWI and other driving-related convictions never appear on a person's permanent driving record. This can be due to poor information exchange between courts and the state DMV's.
Convictions may also not reach your permanent driving record if they were erased through other arrangements. These special arrangements may include successful completion of driver's education.
Furthermore, DWI charges reduced through a plea bargain, or a limited license suspension, will not likely cause your conviction to reach your insurance company.
If your insurer misses your conviction when it happens, they have a limit of three years to increase your premiums or cancel your policy. Some states maintain a limit of five years for insurers to take action on your policy.
This article is ©2006 by Doug Smith, who provides many free and valuable articles on DWI Arrests. Learn more about DWI arrests, DWI attorneys, your DWI rights, the dangers of drinking and driving, and much more DWI information at http://DWI.FindCarsForHire.com. This article may be freely reprinted as long as this copyright notice remains intact, the article is unchanged, and all hyperlinks remain active and clickable.
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