How a California DUI Affects Car Insurance Coverage and Premiums

Updated February 11, 2021

 

The exact affects that a DUI/DWI conviction will have on a Californian’s car insurance coverage and premiums will depend on several facts in a given case. Some of these include the driver’s age, the motorist’s BAC level, whether the DUI caused bodily injury or property damage, and whether the DUI was the driver’s first conviction for the crime or a repeat conviction.

With that said, though, some generalities can be made. For example, drivers are under no legal obligation to inform their insurance provider of a drunk driving offense.

Insurance carriers, though, typically learn of an offense after:

1. the company runs a background check when a driver’s existing policy comes up for renewal,
2. the company runs a background check when a driver applies for a new policy, or
3. the driver requests an SR-22 certificate.

Further, a DUI conviction will generally result in an increase in the offender’s insurance premiums. In some cases, car insurance rates can increase by about 165%. Rates, though, will start to drop after three to five years from the date of the DUI.

Persons convicted of a DUI are encouraged to get the offense expunged. But while an expungement provides many benefits to a convicted driver, it will not help reduce an insurance rate. This is because the expungement does not erase a DUI conviction from a driver’s DMV record.

Our California DUI defense lawyers will highlight the following in this article:

1. Do drivers have to report a DUI arrest to their auto insurance company?
2. How does an insurer learn about a DUI?
3. Can car insurance companies cancel an insurance policy after a DUI?
4. Will a DUI cause an increase in car insurance premiums?
5. How much will premiums go up?
6. What if a driver cannot get insurance after a DUI?
7. Will an expungement help lower a driver’s premiums?

1.Do drivers have to report a DUI arrest to their auto insurance company?

There is no legal requirement that says a driver has to notify his/her auto insurance carrier of a driving under the influence offense.[i]

This rule applies equally to:

• DUI arrests,
• DUI convictions, and
• a DMV administrative driver’s license suspension.

Note, however, that insurance policies do require drivers to notify their insurer if they were involved in an accident. This means a driver must notify his/her insurance company of a DUI offense if it involved a motor vehicle accident.

2. How does an insurer learn about a DUI?

California insurance carriers typically learn about a driver’s DUI charges in one of five different ways. They can learn of a conviction when:

1. the company runs a background check when a driver’s existing policy comes up for renewal,
2. the company runs a background check when a driver applies for a new policy,
3. the driver self-reports the conviction to the insurer,
4. the arrest results from an accident and the driver or another party reports it to the insurance company and/or DMV, or
5. the driver asks the insurer to send an SR-22 form to the California DMV (required to reinstate a suspended license).

As to an SR-22 insurance certificate, note that the DMV requires this document before it can reinstate a person’s suspended license or issue a new license following a DUI.

A motorist obtains a certificate by asking his/her auto insurer for one.

The SR 22 certifies that a driver has auto liability insurance that meets California’s minimum “15/30/5” insurance coverage limits.

“15/30/5 limits” mean that for any single accident there is liability coverage that will cover up to:

• $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, and
• $5,000 for property damage.[ii]

Many drivers choose to maintain policies with higher limits. 15/30/5 is simply the minimum insurance required under California law.

3. Can car insurance companies cancel an insurance policy after a DUI?

California law prohibits an insurer from canceling an auto insurance policy midterm. This means an auto insurance company cannot immediately cancel a policy or impose rate hikes or premium rate increases after a DUI.

But when the policy comes up for renewal, the carrier can legally:

• decline to offer a renewal (i.e., cancel the policy),
• offer a renewal on different terms, such as a higher premium, and/or
• remove a “good driver discount,” if any (in fact, by law, it must do this).[iii]

4. Will a DUI cause an increase in car insurance premiums?

A California DUI will generally result in an increase in higher premiums for car insurance.

The increase will apply to:

• any policy the driver applies for with a new insurance company, and/or
• any renewal of the driver’s existing policy (if the company pulls a new background check).

The higher premium is because DUI convictions or license suspensions classify the driver as “high risk.”

Not all companies are willing to insure high risk drivers. These insurance companies may simply decline to offer a renewal (i.e., “cancel” the policy).

Other companies are more “DUI friendly.” But usually, the premium will reflect the increased likelihood (from the insurer’s viewpoint) of the driver getting into a future accident.

Note, though, that a person’s driving record, DMV record, or criminal record are not the only considerations taken into account when an insurer decides on insurance costs. Carriers typically consider other factors, too, including a driver’s:

• age,
• gender,
• marital status,
• driving experience and driving history,
• place of residence, and
• whether the driver owns or rents a home.

5. How much will premiums go up?

Some analysts report that a DUI can result in car insurance rates to increase by up to 165%.[iv]

But note that the cost of DUI insurance can vary greatly depending on the company. The most important thing for a driver to do is to shop around and gather different insurance quotes.

The following presents some cheap car insurance providers for drivers convicted of a first-time DUI:

Insurance Company	Average Annual Rate After DUI
Mercury	$2,369
Infinity	$2,756
GEICO	$3,230
Alliance	$4,312
Farmers	$4,357
AAA	$5,188
State Farm	$7,286[v]

 

Most insurance carriers (including Progressive) start to reduce a driver’s insurance rates within three to five years following the date of the DUI conviction.

6. What if a driver cannot get insurance after a DUI?

Finding an insurer can be difficult after a DUI but it is always possible.

California law requires that all drivers carry auto insurance.[vi] As a result, the state has a duty to ensure that everyone can obtain coverage.

There are brokers who specialize in finding policies for drivers who have had a DUI in California.

Further, people who are unable to find insurance can apply for liability coverage through the California Automobile Assigned Risk Plan (CAARP).

CAARP is a program that matches high-risk drivers with companies willing to insure them. These companies will issue policies to drivers who are unable to obtain high-risk or SR 22 coverage on their own after a DUI.

CAARP coverage can be obtained through any auto insurance agent or broker or by calling 1-800-622-0954.

7. Will an expungement help lower a driver’s premiums?

No. Expunging a California DUI conviction will remove it from a driver’s criminal record for most purposes.

But it will not erase a driver’s DUI conviction from his/her California DMV record. This means that an expunged offense will not save money in premiums for as long as an offense remains on the record.

A DUI stays on a driver’s California DMV record for 10 years.[vii]

For additional help…

For additional guidance or to discuss your case with a California DUI defense lawyer, we invite you to contact the Shouse Law Group. We may be able to get the charge dismissed or reduced to reckless driving.

[i] See California Vehicle Code 23152 VC. This is California’s main DUI law. It says nothing about requiring drivers to notify their insurance companies of a DUI arrest.

[ii] California Insurance Code 16056a.

[iii] See, for instance, Insurance Code 1861.025c.

[iv] See wallethub.com – How long does a DUI affect insurance in California?

[v] These figures are presented by The Zebra, as updated on February 5, 2021. See California Car Insurance with a DUI.

[vi] California Vehicle Codes 16000 – 16078 are known as the Compulsory Financial Responsibility Act. The Act requires every California driver to carry auto insurance.

[vii] California Vehicle Code 1808b1 VC.