Drunk driving and auto insurance

States are not the only ones cracking down on drunk driving - auto insurance companies are too!

Even though states forbid insurance companies to deny coverage to policyholders because of race, religion, residence, age or occupation, they can cancel your policy for reasons such as:

• Having your driver’s license suspended
• Having too many traffic violations
• Being convicted of a felony, criminal negligence or drunk driving - DUI

Insurance companies generally deal with convicted DUI customers by issuing higher rates or through cancellation or nonrenewal of policy.

If your insurance company chooses to raises your rates, you will more than likely be labeled as a high-risk driver. In this case, you’ll likely have to file proof of insurance for three, or sometimes five, years with your state’s department of motor vehicles. In addition, to remove your license suspension, your insurance company will be required to provide the DMV with an SR-22 form, which notifies the state of your proof of insurance. An SR-22 also means your insurance company is required to notify the DMV if it cancels your insurance for any reason.

Most states require convicted drunk drivers to get an SR-22 from their insurance agency, so in most instances you can’t avoid your insurance company finding out. This notice can also trigger your insurance company to cancel your policy mid-term or terminate your policy at the end of the term. However, your insurance company is required to send you a letter stating why you’ve been canceled. Then it is up to you to try and find another insurer while having a cancellation on your claim history.

In other instances, some insurance companies don’t offer SR-22 policies, so you may find that your policy is not renewed, or even canceled.

Also keep in mind that your insurance company has up to three years to cancel your policy or raise your rates because of a DUI.