Driving under influence (DUI) charges can cause many problems. The driver could lose their license, get probation, and there is also a chance of getting a prison sentence. Not to mention, a driver who is under the influence of drugs or alcohol could kill someone on the roads. These charges also affect your auto and life insurance policies significantly. If you don’t have these policies already, it will get much more challenging to obtain them. The companies that provide these insurance conduct a thorough background check on each applicant. Here is an insight on both of these insurances:
Life Insurance
Many life insurance companies will instantly reject your application if you have had a DUI conviction in the past year. If they do decide to sign a policy with you, they will charge heavily. That is why you will have to look around a lot if you want to get a life insurance policy.
If you are deciding to wait out till the rates get better, then you will be waiting for a long time. It can take up to five years for insurance companies to offer you a better deal on life polices, assuming everything else is perfect.
DUI Conviction Makes You Look Like A Risk
Life insurance companies are likely to charge a great deal of money to people who had been convicted of DUI charges in the five years before the application date. Many will even deny the policy on the bases that drunk driving is very dangerous and can result in death. Car accidents have become very common these days; it is entirely possible for it to be fatal, even if both drivers have a clear mind.
These companies heavily rely on statistics from researches and studies done by various groups. Some of which say that the chances of a crash being fatal are 40% more likely with a drunk person behind the wheel than a driver with a clear mind. Many of them are even convinced that almost 30% of offenders are likely to repeat their illegal actions.
Furthermore, these accidents also show insurance corporations that you might have an addiction to alcohol. Alcoholism is very dangerous and can result in many other health conditions. A person abusing alcoholic drinks can get high blood pressure, heart disease, stroke, liver disease, and certain cancers, among other health defects. These can also cause prices to increase.
Prohibited From Getting The Best rates
Insurers that might give you a chance to get a policy will charge massive rates based on the period of the conviction. A person that was charged with a DUI within a year prior to the application date will have to pay the highest, whereas an individual whose charge was five or more years ago would still be denied the best rates but they will be charged far less than the individual with a period of one year. Some insurance companies may even make you wait for about a decade before they approve your application of a life insurance policy. These corporations don’t generally offer people whose convictions were three to five years ago, a special rate. They will most likely be put in the two-year category.
Experts say that drivers with past DUI convictions should typically expect to pay at least seven to eight cents more on every dollar. That could mean paying an average of $1,875 more every year for a $250,000 life insurance policy. You may have to pay more temporarily, or for the life of the plan.
The situation is much worse for people that have had multiple convictions in the past five years. Most of the companies might deny their applications. Even someone that does accept, you should expect to pay a hefty premium. The positive thing is that they evaluate each case based on its merits alone; they don’t have a company policy to deny these people insurance. That means you can still have some chance with multiple low-level DUI charges on your record.
Buying Life Insurance After A DUI
If you are considering to get life insurance after a DUI charge, it might be appropriate to wait for some time. Look into several companies and see what rates they have to offer. You can decide after conducting research yourself. However, you will need to make sure that you do meet the other requirements. People with good health get the best rates. Not being indulged in any activities like smoking can also increase your chances. Some corporations may even go as far as checking your genes for any history of medical illness.
Consult a life insurance agent to get a better knowledge of the organizations in your city. Being completely honest from the beginning with an agent, or company, will benefit your case, it is doubtful that you will be able to sneak it past them. A lie will make them consider you a fraud, and that can lead to more significant consequences.
All of this can be avoided if you consider hiring an Orange County DUI Lawyer if you live in the area. Lawyers can help you avoid conviction charges, which can make it easier to qualify for insurance.
Auto Insurance
How Can A DUI Affect Car Insurance Rates
If you had a DUI conviction recently, getting an auto insurance will likely be significantly harder for you. No matter what company you apply to, they will charge higher rates. The coverage might cost more for younger people after a DUI; it is because they generally have to pay more than individuals with more upper age.
The rates will also be significantly higher if you have had other trouble on the road. It could be any accidents or infractions you had in the past — the more harmful things on your record, the higher the rate of the policy. Furthermore, having more than one DUI is a serious red mark for most companies, and they can deny your application instantly.
Can You Current Insurance Drop You?
You might be afraid that your current insurer might cancel your auto policy. Rest assured, they aren’t allowed to do that legally. Insurers can only drop you for two reasons, and they are:
- If you are not able to keep up with your payments, they can cancel the insurance. This is especially risky because they are allowed to spike up your rates after a DUI. If they think you are too much of a risk, they can increase your prices to a level where you may leave yourself or aren’t able to afford the fees.
- Secondly, they are legally allowed to cancel their agreement with you if you lied on the initial application and snuck a DUI conviction past them. They are permitted to withdraw even a year or more after the date your insurance was approved. That is why it is best to be honest from the beginning. They may also fill a fraudulent case against you.
The insurance company can significantly increase your rates after they acknowledge a DUI conviction, or on the renewal agreement. They could also choose not to renew your policy if there are two or more DUI charges on your record.
Forms You Will Have To File
After being convicted of a DUI, it is essential that you file an SR-22 form with your insurance company or the state insurance department. The SR-22 form is not a type of insurance; the document will help the company see that you meet the minimum requirements according to the risk level. Depending on the state you are in, they might ask you to submit an FR-44 form instead.
These forms are required for anyone that is considered highly risky. If you have a driving under influence conviction, were caught driving without insurance or a license, have repeated violations in a short period, or were found guilty of other driving charges, it will be necessary.
You can get an SR-22 or FR-44 form from your current insurance company. If you are having trouble filling it, they will certainly provide some help. They will also guide you on the submission process.
If you are planning to move to another restate, then you will have to file another form with your new address mentioned in it.
What If You Lose Your License?
If you lost your driver’s license in the conviction, then the situation can be harmful. Depending on the state you live in, the insurance company might cancel your policy as soon as they find out even if it was signed a couple of weeks ago. However, most insurance organizations will only cancel after your term ends.
If you do lose your driver’s license, then it will be challenging to get another policy. If you still need to get an insurance policy for your car because it is financed or someone else will drive you around in it, then it will take much looking around to find one. Most companies will ignore you upfront.
