DUI Can Almost Double Insurance Costs, Analysis Finds
(Nerdwallet) – Driving under the influence can cost you more than you think. Drivers with a DUI pay an average of $ 3,114 per year for full coverage auto insurance – almost double what a driver without traffic violations pays – according to NerdWallet 2021 Rate Analysis.
The scan included drivers with a DUI in all 50 states and Washington, DC. We took a look at which drivers were paying the most (and cheapest) fares and why.
- The rates after a DUI increase dramatically. Auto insurance rates increase by about 96%, or $ 1,522 per year, on average, for a driver with a DUI.
- Drivers will likely pay higher rates for three to five years. This means that a DUI could cost an additional $ 7,600 if it remains on the driver’s record for five years.
- But not everyone will pay the same rates. On average, drivers with a DUI could pay anywhere from $ 508 to $ 4,165 more per year for auto insurance.
- Location can have a big impact on the price. Average annual rates in Alaska, Florida, Mississippi and Oklahoma increase by less than 50% after a DUI, but more than double for drivers in 11 other states.
- Don’t ignore small insurance companies when shopping. In 34 states and Washington, DC, the most affordable rates after a DUI don’t come from the top 10 insurers in the country.
Expect to pay significantly higher rates after a DUI
Average annual insurance rates after a DUI 96% increase, or $ 1,522, over drivers without traffic violations. Since a DUI typically affects your rates for at least three to five years, a DUI could cost you over $ 7,600 in additional insurance costs over the next five years.
Location helps determine rates
However, these are average fares, and the exact cost depends on where the drivers live. For example, auto insurance rates for drivers in Alaska, Florida, Mississippi, and Oklahoma are increasing by less than 50% on average. While rates after a DUI in California, Hawaii and Michigan increase 165% or more on average.
This means that drivers with a DUI could pay anywhere from $ 508 to $ 4,165 more per year on average.
Why shopping is important
Don’t have a few thousand more dollars to spend on auto insurance? While your insurance bill is almost guaranteed to increase after a DUI, shopping around can help you find the cheapest price possible.
While you might be tempted to stick with your current business, in most states the cheapest insurer before a DUI is not the same after.
Don’t ignore smaller regional insurers when comparing quotes – they often have lower rates. NerdWallet’s analysis found that in 34 states and Washington, DC, the cheapest rates after a DUI are not coming from one of the largest insurers in the country.
What you can do after a DUI
After a DUI conviction, it can be difficult to find cheap car insurance – in fact, you might have a hard time getting coverage. Here are some tips to remember.
- Take the tour right away. Look for alternative insurance immediately after getting a DUI. Your insurer might cancel your coverage, so you’ll want to have another option available. Be sure to notify DUI insurers when shopping for the most accurate quotes.
- Avoid any other traffic violation. Your insurer will likely increase your rate even more after additional driving offenses like speeding tickets, accidents, or another DUI.
- Maintain good credit. Your credit history can play a big role in how much you pay for auto insurance. Having bad credit can raise your rates more than a DUI in some cases. Five states – California, Hawaii, Massachusetts, Michigan, and Washington – do not allow insurers to use credit to determine auto insurance rates.
- Consider reducing your coverage. If you have an old car that isn’t worth much, you may want to ditch collision coverage and full coverage. Compare the value of your vehicle with the amount you pay for coverage plus your deductible, which is the amount subtracted from a claim payment. If there isn’t much of a difference, you’re probably paying more than it’s worth.
- Compare quotes every three to five years. Insurance rates often change three and five years after a DUI. Shop around after these milestones to make sure you always get the cheapest fare.
- Get quotes from non-standard insurance companies. After a DUI, you may need to use an insurer that covers high risk drivers. If you still cannot find coverage, contact your state’s high-risk insurance pool through the Auto Insurance Plan Service Bureau.
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Kayda Norman writes for NerdWallet. Email: [email protected]
The article One DUI Can Nearly Double Insurance Costs, an Analysis Finds originally appeared on NerdWallet.
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