When you are charged with driving while under the influence (DUI), you may expect to face a variety of harsh penalties that will negatively impact your life. However, many people do not realize the long-term repercussions associated with this type of offense. An individual may be subjected to an array of fines, probation, community service, an alcohol education program, license suspension, and even jail time. They can also expect an increase in auto insurance premiums. Keep reading to learn how a DUI can affect your auto insurance rates and how our seasoned Bergen County DUI Attorneys can fight on your behalf to prevent harsh penalties.
Can a DUI Affect My Auto Insurance Rates in New Jersey?
When you go to an insurance company to obtain auto insurance coverage, the insurance company will first evaluate your driving record to calculate an appropriate rate. When you receive a quote from the insurance company, they calculate their rate based on your future risk of being involved in a collision. When examining your driving history, if they see that you have been charged with DUI, they will consider you a “high-risk” driver. Essentially, a high-risk driver is a motorist who is more likely to be involved in an auto accident due to their reckless and negligent actions. Therefore, after a DUI conviction, you will see a significant increase in your auto insurance rates.
In many instances, you’ll find a DUI can increase your insurance premiums by 50% to 100%, and may impact your rates for three to seven years, depending on the insurer.
Why Insurance Companies Raise Rates After a DUI
- Insurance companies assess risk probability, not just prior behavior
- A DUI signals impaired judgment and an increased likelihood of accidents
- Higher risk means you have a greater chance of a costly claim payout
- Insurance companies adjust premiums as a means of offsetting potential financial losses in the event you cause an accident
- Drivers with a DUI are often considered high-risk drivers
What “High-Risk Driver” Means for Your Premium
- Substantially higher monthly premiums
- Limited insurer options, as some companies may deny coverage
- You may be required to maintain SR-22 insurance
- Ineligibility for safe driver programs
Why Do Auto Insurance Rates Increase After an NJ DUI?
When auto insurance companies calculate rates for consumers, they will examine the risk the applicant poses. As such, if a company finds a DUI conviction on your record when evaluating your risk, you can see a considerable increase in your insurance rates.
Operating a vehicle while under the influence of drugs or alcohol impairs your judgment and ability to safely operate a vehicle. As such, you’re more likely to be involved in an accident when you are under the influence. Ultimately, this makes you a considerable risk for insurance companies, as they anticipate that you are more likely to be involved in a collision.
Key Risk Factors Insurers Consider Following a DUI
- Blood alcohol concentration (BAC) levels at the time of arrest
- Prior driving violations or repeat offenses
- Age and driving history
- Type of vehicle insured
- Geographic location, including accident and claim rates in New Jersey
How Long Will This Driving Infraction Affect My Rates?
In New Jersey, DUI is one of the most serious driving infractions you can commit on the road. Unfortunately, if you are charged with DUI, it will stay on your record permanently. This often makes motorists wonder how long a DUI conviction can affect their insurance rates. Fortunately, many insurance companies typically look back three to seven years into a motorist’s driving history. However, every insurance company has different standards, so they can look back even further to calculate an insurance rate.
How Long Insurers Consider a DUI
- Most insurers review the previous three to seven years of driving history
- Some companies consider longer periods, depending on risk models
- A DUI remains permanently on your New Jersey driving record
- Premium increases typically last seven years, even without a new violation
Can Your Insurance Policy Be Canceled After a DUI?
- An insurance company has the right to refuse renewal following a DUI conviction
- Policies may be canceled at the discretion of the insurance company
- Repeat offenses drastically increase the risk of cancellation
- Drivers with DUIs may need to obtain high-risk or non-standard insurance
Additional Financial Consequences of a DUI Beyond Insurance
Beyond increased insurance premiums, a DUI conviction carries broader financial implications that can ultimately impact your long-term stability. As such, it’s critical to understand your legal options to protect yourself during these difficult times.
Common Financial Penalties Associated with a DUI
- Court fines and surcharges
- License restoration fees
- Mandatory participation in alcohol education courses (the Intoxicated Driver Resource Center)
- Mandatory installation of an ignition interlocking device in your vehicle
- Lost wages as a result of court appearances or license suspensions
Contact an Experienced Bergen County Criminal Attorney
DUI will result in increased insurance rates, which is why it is imperative to retain the legal services of an experienced Bergen County DUI attorney. At the Law Office of Carl Spector, our firm is committed to defending our clients’ rights. Allow our qualified attorneys to represent your interests in court to seek a favorable outcome. Contact our experienced criminal defense firm today.