The Impact of DUI On Your Insurance

In Virginia, auto insurance companies are in business to be profitable. That means that in addition to jumping the regulatory hurdles that the Commonwealth puts in place to govern the industry, insurers must also weigh the premiums that they charge you against the risk of having you as a client. High-risk drivers can cause an insurer to lose tens of thousands of dollars with a single claim. Too many of these claims can severely undermine the profitability of the company. With this in mind, a DUI arrest or a crash resulting from drunk driving will compel your insurer to raise your premiums or even drop you as a client all together.

When an insurer learns of your DUI conviction, there are a number of things that can happen. One is that they will classify you as a high-risk driver and raise your premiums substantially. They may also drop you as a client after the accident or simply not allow you to renew your policy. If you lose your insurance due to a DUI, it can be difficult, if not impossible, to procure replacement coverage. Again, the cost of the new policy is likely to be substantially higher than your previous coverage.

In addition to the difficulties that you may have with your insurer, the VA Department of Motor Vehicles may require you to carry an SR-22 financial responsibility certificate. The purpose of this document is to provide the state with proof that you have the required insurance to legally operate your motor vehicle. So even if an insurer manages to overlook your DUI conviction when underwriting your policy (which is unlikely), your request for an SR-22 certificate will alert them to the fact that there are issues with your Virginia driver's license. Keeping a SR-22 valid also may present problems as DMV is quick to suspend one's license if the SR-22 payments are not kept current and timely. This may result in your driver's license being suspended by DMV. There is a DMV fee EVERY time your driving privileges need to be reinstated.

Unlike minor infractions, a DUI conviction in the Commonwealth of Virginia stays on your driving record for eleven years. The most effective way to avoid these pitfalls is to drink responsibly and refrain from driving when you're intoxicated. However, in the event that you are stopped for drunk driving and subsequently arrested, it's important for you to obtain a competent Virginia DUI/DWI attorney to defend you in a court of law. By avoiding a conviction, you may also be able to retain your insurance and escape a premium hike.

Please feel free to call Carleton Penn, III, (703) 501-4900 to discuss this further.