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Lawrence Newman, DWI Lawyer
504 N. Aurora Street
Ithaca, NY 14850

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Local, Focused, and Personal DWI Representation
How a DWI Conviction Could Affect Your Car Insurance
Generally, auto insurance carriers may check your motor vehicle record only once every three years, when you are updating/changing your current policy, or when you're applying for a new policy. It's possible that accidents, traffic violations/tickets, and DWIs may never make their way to your official motor vehicle record. However, if your auto insurer does discover your DWI and classifies you as a "high-risk driver," shopping around at your renewal time is the best strategy, as rates will probably vary greatly among auto insurers.

A rate hike may be only one possibility. Your auto policy could be cancelled or nonrenewed, especially if you are currently in a preferred/highly rated class. Then you will be forced to seek a new car insurance carrier. This means you now have two problems: a disclosed DWI on your driving record and auto insurance policy cancellation on your record.

Laws regarding DWIs and car insurance coverage vary by state. Most states requires DWI offenders to get a form called an SR-22 from their auto insurers, so you can't hide. This form proves to the DMV that you carry liability insurance and removes your license suspension. An SR-22 also requires your insurance company to notify the DMV if it cancels your auto insurance for any reason. You'll likely have to file proof of insurance for three — sometimes five — years with your state's DMV.

Sometimes, auto insurers can miss DWI convictions. SR-22 laws vary state to state. Delaware, Kentucky, Minnesota, New Mexico, Oklahoma and Pennsylvania don't require SR-22s, but if you have an SR-22 and then move to one of these states, you must continue to meet the requirements of the SR-22 state where the offense was committed. NOTE:

New York and North Carolina don't require SR-22 filings at all.

Source: Progressive Insurance Company

It's possible that your insurance company will never find out about your DWI conviction if you don't have to get an SR-22. A June 2002 study by the Insurance Research Council revealed that as many as one-quarter of driving convictions never end up on motor vehicle records due to lack of shared information between courts and motor vehicle departments, or because a conviction has been erased through alternative means, such as driving school. If you get your charge reduced in a plea bargain, or have a limited license suspension, such as 30 days, it's also very unlikely your insurer will find out about your conviction.

Please note that If your insurance company misses the conviction at the time it happens, it may still have a few years to raise rates if the DWI is discovered later.

Auto insurance carriers handle DWI convictions differently. For instance, State Farm Insurance Company will base their action dependent on which subsidiary you're insured with. State Farm reviews rate-increase decisions on a case-by-case basis. If you have a preferred policy with State Farm Mutual Insurance Co. and receive a DWI, State Farm will likely move you into State Farm Fire & Casualty, which is its standard-policy company for riskier drivers and higher rates.

In contrast, if you're insured with Progressive Insurance Company, you will not face nonrenewal or cancellation because of a DWI, but you may face a large rate increase. Progressive also reviews rates on a case-by-case basis, with multiple factors such as age, gender, driving history and your vehicle model going into your rate.

Insurance companies generally consider people with DWI convictions as high risk individuals. There are other collateral insurance consequences of a DWI conviction.  Your DWI conviction will follow you when you apply for life and/or disability insurance and could affect your premiums there, as well.