When you are convicted of a DUI in California, the economic impact can include more than fees and fines from the court. The conviction can also have a dramatic effect on your insurance premiums. Insurance companies use a number of factors to evaluate the level of risk for their drivers, including the age of the driver, make and model of car, number and type of traffic tickets, number of accidents, and of course any DUI convictions.
Basically, a DUI conviction is a high-risk red flag for an insurance company. There is little doubt that it will affect your ability to drive for years to come. Some of those factors may include dealing with an ignition interlock device, getting back your driver’s license, and the likelihood of a greatly increased insurance premium. That is why you need the skilled guidance of a knowledgeable attorney from The Law Offices of Bryan R. Kazarian to help protect your rights and interests when you are arrested and charged with a DUI in Orange County, CA.
What Will Happen to My Insurance after a DUI in California?
A DUI conviction means that you are now at a much greater insurance risk than before. Your insurance company will most likely raise your rates once they become aware of your DUI conviction. They may even drop you entirely at the end of your coverage term because you are too great of a risk. In most cases though, the insurance company will keep you as a policyholder but significantly increase your insurance premiums. At that point, it might make more sense to seek a different insurance provider.
Do not assume that you can conceal your DUI conviction from your insurance company by not reporting it to them. Most likely, they will find out one way or another.
Do I Have to Report My DUI to My Insurance Company?
Depending on your insurance policy terms, usually the short answer is no. In most cases you don’t need to tell your insurance company about DUI arrests, convictions or driver’s license suspensions. However, insurance carriers in Orange County, California and throughout the state usually do learn about DUI cases. For example, your insurance company typically runs a driving record check when your policy is due for renewal or when you apply for a new policy. In such cases, the DUI would most likely show up on your driving record.
If your DUI involved an accident and perhaps an injury, you are required to report the accident to your insurance company. The other party might do so as well, and either or both of you might report it to the California Department of Motor Vehicles, which in turn may inform your insurance company.
An insurer might also find out about your DUI when you ask them to forward an SR22 form to the California DMV. This form is required in order to grant a new license or to reinstate a suspended one after a DUI.
Although California law does not require that you report your DUI arrest or conviction to your insurance company, keep in mind that each insurance policy does specify unique reporting requirements. If you fail to meet the DUI reporting requirements of your insurance , the company could deny any future claims.
How Long Does a DUI Conviction Stay on Your Driving Record?
According to California law, a DUI conviction must remain on your driving record for ten years. This can have multiple negative effects. For example, if you had a safe driver discount, your insurance company will cancel it once they learn about your DUI. In addition, your insurer will place you in the high-risk category. The result is that your insurance rates will soar and remain much higher than before.
The good news is that each year you drive without any additional negative marks on your record reduces the weight of the conviction when your insurance company calculates your new rates. Once your DUI no longer appears on your driving record, it is a good idea to seek a new insurance company that has no record of your past conviction. Chances are their rates will be lower than those of your current insurer.
Even if you are able to get your DUI conviction expunged, it can still be used against you as proof of a previous DUI conviction with your current insurer. So, if you remain with your current insurance carrier, your DUI can still affect insurance rates. Therefore, it may be a good idea to seek a quote from a new insurance carrier who has no knowledge of your history after a DUI conviction expungement.
What is an SR22?
If you are convicted of a DUI, the California Department of Motor Vehicles requires that your insurance policy provide at least the minimum coverage required by the state of California. You will need to offer proof of such coverage in order to get your license reinstated. The SR22 certificate provides that proof. Your insurer must file this certificate with the California Department of Motor Vehicles (DMV) to show that you have the required coverage. The SR22 certifies that you have auto liability insurance that meets California’s minimum coverage limits of “15/30/5”. This means that your liability coverage will pay up to the following for any single accident:
- $15,000 for the death or bodily injury of one person
- $30,000 total for the wrongful death or bodily liability of all people hurt or killed in the accident
- $5,000 for property damage
It is important to remember that if you allow your policy to lapse, miss a payment, or cancel your policy, the SR22 will be revoked by your insurance company and your license may be re-suspended.
Can My Insurance Provider Cancel My Policy after I am Charged with a DUI?
According to the California Insurance Code Section 676.10(b), insurers cannot cancel an auto insurance policy midterm except in cases of fraud or nonpayment. This is true even after a DUI as long as you have a valid license. However, at the end of the policy term, insurers are free to offer a renewal at a much higher premium if you have a DUI conviction or refuse to offer a renewal at all. Again, a DUI conviction means the loss of any good driver discount you might have enjoyed.
Are You Dealing with Insurance Company Issues after a DUI Conviction in Orange County, California?
A DUI conviction can affect your future and your wallet. Skilled legal representation from our knowledgeable team of DUI attorneys will help you navigate those DUI issues. Contact The Law Offices of Bryan R. Kazarian today at 855-918-4253 or reach out to us online for help.
