The DUI Scarlet Letter and Its Bearing on Your Car Insurance Rate

Anyone that has been unfortunate enough to receive a DUI knows that they are nothing short of serious, uncomfortable, and costly. Suspended licenses, court costs, and attorney fees are just the tip of the iceberg when it comes to expenses that are affiliated with DUI’s. While those expenses are extreme and took a good chunk of your finances, the worst is still yet to come.

The insurance company will either charge you off the hook for your rates or they may just terminate your policy, neither option is pretty. You will be a "high risk" driver for quite some time and possibly even be uninsurable. Very rarely, your DUI can get caught up in the red tape and fail to surface for a while but it usually does surface at some point.

The most trusted insurance companies won’t touch you for coverage so you will likely be stuck with some small no name insurance agency that will charge you an arm and a leg for your coverage. States determine how long the DUI will remain in your record but it could stay there for the rest of your life in some states.
Every state has authorization over DUI laws and car insurance coverage. Most states make those with a DUI get a form SR-22 from their insurance company, which ensures that everyone knows about your DUI. It is the only way though to get your license reinstated by proving to the DMV that you carry at least liability coverage.

The catch is that in many cases the insurance company is obligated to inform the DMV is you no longer have insurance coverage. If your insurance company will allow you to remain covered, expect a significant increase in your premiums.

No laws are enforced to dictate any caps on what is acceptable for an insurance company to charge you after a DUI so they can have a field day with your wallet. It is essential that you think before you drink and never engage in drinking and driving. A single foolish choice can be a curse for many years.

Article Source: http://www.new.citynewslive.com