Drunken driving and its effects on your auto insurance
Drunken driving and its effects on your auto insurance
Unbelievably, driving under the influence can affect your automobile insurance as well! Any person, who is convicted because of high BAC levels while driving, will find his or her insurance rates shooting up for 3 years or more. During this period, the person will also be educated about a term called SR-22.
Penalties depending on state
Depending on which state of the US you reside in, the penalties imposed because of drunken driving will differ. However, it is a known fact, that in almost all the states, if a person's alcohol testing reveals a BAC in excess of 0.08, it will result in license suspension. These privileges will be suspended from anywhere between a month to even a year. For repeat offenders the tenure would be much more. In order to retrieve the license the person would have to complete the SR-22 application form, which is present with the licensing agency. This application form will show that you have liability insurance for the vehicle you were driving and the insurance company needs to notify the agency regarding any changes in the policy.
Increase of premium payments
You can expect your monthly premium payments to increase by three times, if not more. If the Breathanalyzer Test reveals high BAC levels and you are convicted you will need to get the SR-22 form from the insurance company. The insurance company will automatically consider you as a driver with a high risk quotient, with the result your premium payments will increase manifold. If you were always in their good books and were getting substantial driver discounts, then this can be more of a financial nightmare as you see your monthly insurance bills shooting up.
Cancellation of policies
You could consider yourself lucky if your insurance company is providing an SR-22 policy. Many companies do not offer such policies and when they hear you are convicted because of a high BAC level they might just cancel your policy. Renewal of the policy is also not an option as the company would refuse to do so. Even if you do happen to shop around and locate an insurance company offering SR-22 policies, the rates would be exorbitant. However, before your insurance company cancels your policy, make sure to check on your local state laws as some states do not allow insurance companies to randomly cancel policies until the term has expired.
How to prevent rate increases?
The only way your insurance rates are going to increase is when you want to restore your driving privileges. However, if you are alright with walking or obtaining public transport till your license is granted, you can have your insurance rates intact. Nevertheless, it is always in your best interest to avoid drinking and driving altogether. Police officials can easily suspect a case of drunk driving and if a alcohol test shows high amounts of BAC then you are in for big trouble.
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