A DUI can impact a driver’s insurance in various ways. Whether you have recently been pulled over for driving under the influence or are curious about the penalties and how they could impact your life, it’s highly likely that it will cause your auto insurance rates to rise. In Canada, driving while under the influence of alcohol is treated as a very severe offence because of the harm it can cause to yourself and others on the road or nearby. Legal penalties can range from driving suspensions, expensive fines and driving classes. The punishment often fits the severity and damage done by the crime.
It’s important to do your research about auto insurance and a DUI to understand how you may be affected. Some insurance companies may not cover an individual with a DUI that has been on their record for an extended period of time. In this article, we have compiled all of the key information you should know about how a DUI can affect auto insurance rates.
CAR INSURANCE COMPANIES AND DUI’S
When auto insurance carriers find out that you have a DUI, they may take it in various ways. The insurance company may cancel your policy when this happens, however, other companies may maintain your coverage but raise your premium rate. Insurance companies do have the right to refuse to cover claims if you refuse to disclose your DUI.
A DUI CAN RAISE INSURANCE RATES
The most common outcome in the situation of a DUI is that the insurance carrier will raise the insurance rate of the individual’s car insurance or even refuse to provide a policy. Drivers should look for policies that specialize in covering high-risk drivers, including drivers with a DUI on their record. However, these policies are often premiums with higher monthly or annual rates. Drivers with a DUI can pay up to five times more on their car insurance rate than drivers with a completely clean record. The premiums will depend on certain conditions, such as the area the driver is in and the amount of claims made by the driver. Each DUI will continue to increase auto insurance rates further.
WILL THE INSURANCE COMPANY EVER LOWER YOUR PREMIUM AFTER A DUI?
Fortunately, the insurance penalty for a DUI is not always a lifelong situation. You will likely not need to pay the very high premium forever if you remedy your driving situation. If you maintain a clean record and avoid filing claims, your insurance premium can decrease yearly. After a few years of maintaining this, you can purchase an auto insurance rate for a normal price. If you had your license suspended due to a DUI, it will remain on your record for at least six years.
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