Will I lose my insurance coverage after a DUI?

On Behalf of | May 30, 2020 | DUI

If you feel the temptation to take a drink before getting behind the wheel of your vehicle, the consequences of a DUI may help you to think otherwise. A DUI can produce many undesirable outcomes, including a major hike of your insurance premiums. Your insurer may even decide to drop your coverage. 

According to Bankrate, an insurer possesses the right to revoke your coverage if you have a DUI on your record. It might not seem fair, but to understand why this may happen, it may help to look at it from the point of view of the insurer. 

Reasons insurers drop DUI offenders 

Insurance companies generally do not want to cover people who are at high risk of getting into an accident. That is why you want to keep traffic violations off your driving record. If you rack up too many violations and a DUI on top of them, an insurer may decide that you are too great a risk and will discontinue your coverage. 

Insurers may hike your rates 

Alternatively, your insurance company might not drop you after a DUI conviction. Some companies are willing to give you a chance following a DUI, but they might choose to hike your insurance rates. In fact, insurance rates can go up an average of $800 following a DUI. While another insurer might offer you lower rates in spite of your DUI, you will have to do some shopping around to find one that will. 

Keeping a safe driving record 

Even if you maintain your coverage, having a DUI on your record can put your insurance coverage in a precarious situation. If you do not keep a safe driving record following your DUI, your insurer may boost your rates again or decide to drop your coverage. Even a small violation that warrants a traffic ticket may cause your insurer to act against you. 

Insurance problems can be hard to deal with. Insurance hikes may put a drain on your finances, and you may not find another insurer willing to offer you coverage after a DUI. These eventualities are why fighting DUI and other traffic charges may help you to avoid such predicaments.