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How might a DUI affect my car insurance rates?

On Behalf of | Oct 24, 2024 | Criminal Defense |

Every driver pays a different amount for their insurance coverage. Some people pay far more than others because they have a very expensive imported vehicle or live in a neighborhood where vehicle theft is relatively common. Others may pay substantially less because they don’t drive much and belong to a demographic that represents a low degree of risk.

Insurance providers look at people’s age, address, sex and driving history when deciding how much their car insurance policy should cost. Liability insurance pays to cover costs when the insured party causes a crash. Therefore, people who are likely to cause significant collisions tend to pay more for their insurance. A driving under the influence (DUI) conviction is a red flag for increased crash risk in most cases. As such, most drivers can expect a DUI conviction or guilty plea to directly affect how much they pay for insurance coverage.

How much does a DUI increase their policy costs?

There is no publicly-available formula for calculating insurance costs. Each company has its own proprietary approach. That being said, researchers can look at average policy costs for people in a variety of circumstances to provide an estimate.

Those with a recent DUI conviction can expect a substantial increase in their insurance premiums the next time they renew their policies. The average car insurance policy in Indiana costs $1,165 per year. That rate is likely to increase substantially after a DUI conviction. The average cost of insurance after a single DUI conviction increases to $1,635. That’s a 40% increase in costs!

In cases involving repeat DUI offenses, policy premiums can increase significantly more than that average 40%. Some insurance companies may refuse to issue policies to those with multiple DUI convictions. Drivers can expect to incur expenses when securing alternative transportation after a DUI conviction, as they are likely to lose their driver’s license temporarily. They may also have to cover court costs.

The potential costs of insurance and the other financial implications of a DUI conviction might make fighting DUI charges a fiscally responsible decision when compared to entering a guilty plea. Drivers who look at the big-picture impact of a conviction can make better choices when responding to DUI allegations.

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