As a driver, you’ll want car insurance to keep you financially protected in case of accidents on the road. But sometimes, your insurance rates can go up based on your driving habits. If you have a DUI on your record, it can affect your car insurance, although the exact rate of increase will depend on a variety of factors. If you’re looking for the best car insurance for a DUI, read on to learn more about some insurance companies that can help you maintain your budget.
What Is Car Insurance?
Car insurance is an agreement that you enter with your insuring company. You pay a monthly or yearly rate, called a premium, and in return, you receive financial compensation in the event of an auto accident, after you meet your deductible. While the coverage you receive can depend on your specific policy, you may receive payment to help you cover expenses associated with car theft, damage to your vehicle, or medical expenses that arise from an accident. You’ll also receive liability insurance, which covers damage done to another driver’s vehicle in an accident.
Why Is Car Insurance Important?
Most states require drivers to have some form of car insurance. This is especially true for liability insurance for injury or property damage sustained by another driver. If you’re planning on financing a vehicle, your lender may also require you to hold a certain amount of comprehensive and collision insurance coverage. This is because a lender may not want to lend to someone whose lack of coverage might put them in a challenging financial situation after an accident.
While the specific details of each policy can vary, you’ll want to purchase enough coverage so that you aren’t left financially responsible for an accident that you caused or one that’s the fault of another driver. If you don’t have coverage or don’t have enough coverage, you may end up with an extensive bill after an accident. It’s better to be safe than sorry when selecting your car insurance policy.
What Happens to Your Insurance When You Get a DUI?
Insurance rates can depend on a variety of factors, like your age and your employment and education history. A major factor that insurance companies consider, though, is your previous driving record. When a company determines an insurance rate, they may do so based on the likelihood of you getting in an accident and needing financial reimbursement. While your insurance company can’t predict the future, they can consider your past driving history when deciding how likely you are to have a claim.
Depending on your company and policy, getting a DUI can increase your rates significantly. On average, your annual insurance rate can increase by about $1,400 when you get a DUI. This increase can be even worse if you have other issues, like another DUI or speeding ticket, in your driving history. Your policy increase will likely stay active as long as the DUI is on your record. For many states, this can be anywhere from three to five years.
As with any insurance decision you make, you should consider shopping around a bit before selecting a policy after a DUI. You’ll likely experience a rate increase across the board, but some companies will offer a more manageable increase than others. Some companies might even offer financial assistance programs or benefits to help minimize the sting of a rate increase.
Best Companies for Insurance After a DUI
Here are some top companies that you can look into after receiving a DUI, along with their average rates:
USAA
With no driving violations, USAA’s average annual premium for car insurance is $883. With a DUI, this increases, on average, to $1,816, making a total increase of $933. While this isn’t the lowest increase amount you can find, USAA’s lower no-violation rates make this increase less challenging. However, this company has some limitations on the drivers it will serve. If you’re an active-duty military member, a veteran, or a family member, USAA’s rates may be worth checking into.
Progressive
Progressive has an average no-violation rate of $1,381 per year. With a DUI on your record, this increases to $2,132, for an increase of $751. While this is one of the lowest increase amounts you can find within the large national companies, you may want to look into other companies to see if you can find a better rate.
State Farm
For drivers with no violations on their record, State Farm’s average rate is $1,235 per year. For a DUI, this rises by $987 to $2,222. Be sure to check out State Farm’s policy options to see if this coverage works for you.
How To Find Better Rates After a DUI
To minimize the financial impact of any rate increases after a DUI, you can do a little research about your options. While it may be easier to simply select one of the national policies mentioned above, there are some smaller, local companies that can provide even lower rates and increases. For example, a company called Indiana Farmers had some of the cheapest rates in the nation, coming in at around $80 per month, but you can only find this company in Illinois, Indiana, and Ohio. No matter where you live, it might be helpful to look into some local options.
Insurance rates and increases can also depend on your state. For example, if you live in Alaska, you’ll get a cheaper rate after a DUI with State Farm, coming in at $1,042 per year. If you live in Connecticut, though, you’ll get a better deal with Progressive at $1,381 per year. No matter what your situation, you may be surprised at how much you can save when you shop insurance options before committing.
Auto insurance is extremely important for all drivers to have. Even though costs can rise after a driving incident like a DUI, there are some methods you can use to minimize your rate increases. Doing a little research and looking into lesser-known local options may help you find a company that matches your needs and your budget. Feel comfortable knowing that you and your vehicle are protected when you find an auto insurer that works for you.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
