Shopping for Auto Insurance with a DUI on Your Record? Here's How to Keep Premiums to a Minimum

If you've been convicted of a DUI, most insurers will consider you a high-risk driver because they assume you're more likely to have an auto accident in the future, making you riskier to insure. In fact, you may have received a letter from your current insurance company informing you that they will not allow you to renew your policy—some auto insurance carriers only offer low-risk insurance, and will tell high-risk drivers to look elsewhere for a policy. Shopping for high-risk auto insurance is similar to shopping for normal auto insurance, with the key difference that you'll have to find a carrier that will provide you with an SR-22 form. If you've had a DUI and need to shop for high-risk insurance, here's a guide on what you need to do.

1. Understand the SR-22 Filing Process

Many states require you to file an SR-22 form with the DMV in order to have your license reinstated after a DUI charge. This form proves to the DMV that you have insurance, and you'll need the appropriate documentation from your insurance carrier in order to prove it. Not all insurance carriers offer this service, including some high-risk insurance carriers. When you shop for high-risk auto insurance, make sure that you specify that you need an SR-22 form in order to avoid purchasing insurance from a carrier that won't provide documentation.

If you sold your car after your DUI charge because your license was suspended and you weren't using it, you'll still need to provide an SR-22 form to have your license reinstated. If you don't have a car, you can still purchase non-owner high-risk auto insurance. It's much cheaper than normal auto insurance and fulfills your SR-22 requirement. Even if you don't own a car, reinstating your license is important because states typically place you on a probationary driving period after a DUI conviction. When you reinstate your license, the timer on your probationary period starts ticking down, regardless of whether or not you're driving. In addition, it will help cover you if you're in an accident while driving another person's car, and it will stop you from having a gap in your auto insurance coverage, which can increase your rates.

2. Shop Around for Quotes from Multiple High-Risk Insurance Carriers

While everyone can save money by comparing auto insurance quotes from a variety of carriers, it's much more important when you're shopping for high-risk insurance. There are several carriers in the market competing for your business, and they price insurance differently based on your risk. For example, some take your credit rating into account when pricing your premiums and some do not. If you have good credit, you'll want an insurer that takes credit rating into consideration instead of one that does not.

You can compare quotes from a number of carriers using online tools, but those tools might not provide quotes from every high-risk insurance company that operates in your state. Shopping around at smaller carriers who might not be represented on the online comparison tools or asking a local insurance agent for help will ensure that you've checked all of the options available to you.

3. Drive Carefully and Avoid Traffic Infractions

You don't want to be stuck in the high-risk pool forever—premiums are much greater for high-risk drivers than they are for drivers in the low-risk pool. Take defensive driving courses (which may also help lower your premiums) and avoid speeding and reckless driving. Have a contingency plan in mind whenever you go out to drink, which may include taking a cab or sleeping at a local motel. With enough time and a safe driving record under your belt, you'll be allowed to rejoin the low-risk pool and its low premiums.

While a DUI will raise your premiums and typically move you into the high-risk pool, shopping around for insurance quotes from multiple carriers can help limit the financial damage. Once you've found the best deal for you, continue to drive safely so that you're not stuck in the high-risk pool and its high premiums for longer than necessary.