A DWI or DUI can follow a driver long after the traffic stop is over. There are the obvious concerns—fines, court appearances, a possible license suspension—but there can also be a financial consequence that shows up later: car insurance.
For many drivers, the first question is simple: Will my insurance go up?
Unfortunately, there isn’t a single answer. What happens to your auto insurance after a DWI or DUI depends on where you live, what happens with the case, your driving history, and the rules and practices of your insurance company.
Does a DWI or DUI Automatically Raise Your Insurance?
Not necessarily.
An arrest is not the same thing as a conviction, and the two can have very different implications. In many cases, insurance companies are more concerned with what ultimately appears on a driver’s motor vehicle record than with the fact that an arrest occurred.
That said, an arrest can still create complications. Information about a driver’s license status or driving record may become available to an insurer at different points, and state insurance laws can limit how certain information is used.
If a DWI or DUI charge is dismissed or otherwise resolved without a conviction, the insurance consequences may be different from those facing a driver who is convicted.
The important thing is not to assume that an arrest automatically means your premiums will increase—or that an arrest will have no effect at all.
Why Can Insurance Rates Go Up After a DWI/DUI?
Auto insurance companies evaluate risk when setting premiums. A DWI or DUI conviction can be viewed as an indication that a driver presents a higher risk of future accidents or claims.
That can translate into higher premiums.
How much they increase is another matter. There is no universal nationwide percentage, and two drivers with similar convictions may see very different results.
An insurer may consider factors such as:
- The driver’s age
- Previous accidents and traffic violations
- Prior DWI/DUI convictions
- The severity of the offense
- Whether an accident was involved
- The driver’s location
- The driver’s existing insurance history
- The insurer’s underwriting guidelines
A driver with an otherwise clean record may have a very different experience from someone with several previous violations.
Could Your Insurance Company Drop You?
Possibly, but the answer depends on state law and the terms of the policy.
Insurance companies generally operate under state-specific rules concerning cancellation and nonrenewal. Those rules can be different depending on whether the insurer is trying to cancel an existing policy or simply decides not to renew it when the policy period ends.
So, while a DWI/DUI conviction can make insurance more expensive or more difficult to obtain, it does not necessarily mean an insurer can immediately cancel an existing policy.
If you receive a notice from your insurance company after a DWI/DUI, read it carefully. It may explain whether the company is changing your premium, canceling coverage, or declining to renew the policy.
What Is an SR-22?
Drivers dealing with a license suspension may also hear the term SR-22.
Despite the common phrase “SR-22 insurance,” an SR-22 generally isn’t a special kind of insurance policy. It is a filing associated with an auto insurance policy that provides proof that the driver carries the required financial responsibility coverage.
Not every state uses SR-22 filings, and the circumstances requiring one vary.
Some states use other forms or systems for demonstrating financial responsibility. As a result, drivers shouldn’t assume that an SR-22 requirement applies simply because they have been charged with a DWI or DUI.
Does a DWI/DUI Affect Insurance Before the Case Is Over?
This is where things can get complicated.
A DWI/DUI case can involve several separate processes. There may be a criminal or traffic case, a driver’s-license proceeding, and eventually an insurance issue.
Those processes don’t necessarily move at the same pace.
For example, a driver’s license might be suspended before the criminal case is resolved. An insurance company may also learn about changes to a driver’s motor vehicle record at a different point in the process.
That is why it’s important to distinguish between an arrest, a charge, a conviction, and a license suspension. They are not interchangeable, and each can have different consequences.
How Long Does a DWI/DUI Stay on Your Insurance Record?
There isn’t one nationwide time period.
A DWI or DUI may remain on a driver’s motor vehicle record for a certain period, while an insurance company may consider the offense for a different period when determining rates or eligibility.
The length of time can depend on state law and the insurer’s underwriting rules.
The good news for drivers is that the impact of a serious driving offense does not necessarily last forever. As time passes and a driver builds a clean record, the offense may become less significant to an insurer.
Exactly when that happens, however, is something drivers should confirm with their insurer and the applicable state authorities.
What If Your License Is Suspended?
A license suspension can create another insurance problem.
If you’re unable to legally drive, you may wonder whether you should cancel your insurance. That decision requires some caution.
In some states, maintaining insurance can be important even when a vehicle isn’t being driven. For example, New York requires registered vehicles to maintain liability insurance, and the state warns that failing to maintain required coverage can lead to registration and license consequences.
The rules are different elsewhere, so drivers should check their state’s requirements before canceling coverage simply because their license has been suspended.
New York and New Jersey Are Good Examples of Why State Law Matters
DWI/DUI laws and insurance-related consequences can vary significantly from state to state.
New York, for example, has its own rules concerning DWI offenses, driver’s licenses, and vehicle insurance. Someone facing a New York DWI may therefore encounter requirements that don’t apply to a driver in another state. More information about the underlying New York DWI laws is available in this New York DWI resource.
New Jersey provides another example of why drivers should look at the law of the state where the offense occurred. New Jersey imposes separate motor-vehicle surcharges for certain alcohol- and drug-related offenses, including DWI and chemical-test refusal. The state’s current materials explain that these surcharges are separate from any insurance premiums an insurer may charge.
For drivers dealing with a New Jersey DWI or driving-under-the-influence matter, state-specific information is available through this New Jersey DWI/DUI resource.
These examples illustrate a broader point: there is no single national set of rules governing the insurance consequences of an impaired-driving conviction.
Can You Still Get Car Insurance After a DWI/DUI?
Yes, although it may be more expensive or more difficult depending on the circumstances.
A driver who has a DWI/DUI conviction may need to shop around for coverage if their existing insurer raises rates, declines to renew the policy, or otherwise changes the terms of coverage.
Some drivers may also need to provide proof of financial responsibility or meet additional state requirements before their driving privileges are restored.
If you’re having trouble finding coverage, an independent insurance agent may be able to explain which insurers are willing to cover drivers with recent violations or convictions.
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What About an Accident Involving a DWI/DUI?
An impaired-driving case involving an accident can create additional complications.
If another person was injured or another vehicle was damaged, there may be a separate insurance claim in addition to the criminal or traffic case. Depending on the circumstances, the driver’s insurer may still have obligations under the policy even if the driver is accused or convicted of DWI/DUI.
An accident can also affect future insurance rates independently of the impaired-driving charge.
This is one reason a DWI/DUI involving a collision can become significantly more complicated than a case involving a traffic stop alone.
Don’t Forget About the Cost Beyond the Insurance Premium
When estimating the financial impact of a DWI/DUI, the insurance premium is only one piece of the puzzle.
Depending on the circumstances and state, a driver may also face court costs, fines, license-related fees, ignition interlock expenses, treatment or education programs, towing and storage charges, and other costs.
In some states, there may also be separate motor-vehicle surcharges. New Jersey, for example, has statutory surcharges for certain DWI and refusal violations in addition to any insurance premiums an insurer may charge.
The total financial impact can therefore be much greater than the initial fine.
What Should You Do After a DWI/DUI?
If you’ve been arrested or charged with driving while intoxicated or driving under the influence, keep copies of your court documents, driver’s-license paperwork, and insurance correspondence.
Don’t assume that your insurance will automatically be canceled or that your premiums will immediately increase. At the same time, don’t ignore letters from your insurer or motor vehicle agency.
It can also be helpful to ask your insurance company directly how a particular conviction or license suspension could affect your policy. An insurance professional can address questions about coverage and premiums, while a criminal defense attorney can explain the legal consequences of the DWI/DUI case itself.
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Most importantly, remember that an arrest is not a conviction. The ultimate effect on your insurance may depend on how the case is resolved, what appears on your driving record, and the laws and insurance rules that apply where you live.
A DWI/DUI can be expensive, but understanding the different pieces of the process can help you avoid unpleasant surprises down the road.