How does a DUI affect car insurance rates?

Getting caught driving under the influence (DUI) has serious consequences. Whether you are being charged or want to be informed, this guide is here to help. Let’s state the obvious — a DUI conviction does lead to higher insurance rates. However, there are additional penalties, including driving suspensions, expensive fines, and the costs of taking mandatory classes. The punishment will vary depending on the seriousness of the incident and your driving record. Multiple arrests for driving while impaired will result in higher fines and can even get your licence revoked permanently.

If you are convicted of a DUI, you might have trouble getting car insurance. The majority of car insurance companies won’t cover someone with a DUI on their record. That’s why the best option is to contact a broker if you have a DUI on your record. It will make finding auto insurance much easier.

Having car insurance is mandatory in Canada. If you plan on driving again, you need to find an insurance policy that provides the coverage you need to be safe on the road. With that said, this blog is here to educate you on how DUI convictions affect car insurance rates.

Defining a DUI

DUI is short for driving under the influence. It can come in many forms, but generally, you can define impaired driving as operating a vehicle while under the influence of drugs or alcohol. There are three ways you can be charged with a DUI. Here’s what you should avoid to keep your insurance premium low:

Zero BAC

Novice drivers and drivers under the age of 21 should have a zero BAC (Blood Alcohol Concentration) when driving.

Warning/roadside suspension for BAC between 0.05 - 0.08

If you are driving with a BAC between 0.05 and 0.08, you are in the warning range.

DUI charge for BAC over 0.08

You will receive a DUI charge if you are caught driving with a BAC over 0.08.

Consequences of a DUI conviction

Even with a pending DUI charge, you are still an insured driver. However, it’s important to note that impaired driving is an offence under the Criminal Code of Canada. As a result, there are repercussions that are much more serious than the fines that come with speeding tickets. On top of having trouble finding an insurance provider that will offer coverage, you will face additional coverage. We go over the offences below:

First offence

When you are convicted of your first DUI charge, you will receive a 90-day licence suspension. After this time has passed, you will have an ignition interlock device installed in your vehicle for one year. In some cases, your vehicle will be seized for up to 30 days, and you will have to take a remedial course. There’s also a minimum fine of $1,000, which is on top of towing/impound, course and interlock device costs.

Second offence

If you are convicted of a second DUI charge, you’ll be subject to a 90-day licence suspension. You will also have an ignition interlock device installed in your vehicle and will have to take a remedial course. Your vehicle will be seized for up to 30 days, and you will have to pay a $2,000 fine. Your second conviction will result in a criminal record.

Third offence

A third DUI conviction will have serious consequences, including those mentioned above. Additionally, you will have to participate in the ignition interlock program for the rest of your life and receive another criminal charge.

As you can see, repeat offenders will suffer more severe penalties. If you get into an accident as a result of impaired driving, you can face additional charges. If you injure or kill someone while driving impaired, you can face jail time on top of the pricey fines. A treatment program will also be required regardless of how many offences you have committed.

Factors that influence car insurance rates following a DUI conviction

A couple of factors affect car insurance rates after a DUI conviction. The best course of action is avoiding drinking and driving in the first place. However, if you’ve already done it, you can’t change the past. That’s why it’s important to understand the aspects that can affect your insurance premiums following a DUI conviction. Here are some things to consider:

Driving record

If you had a clean driving record before you were caught driving impaired and maintained it, you could eventually lower your auto insurance rates.

Classes

Sometimes, mandatory enrollment in classes is required after getting convicted of a DUI. These classes demonstrate that you’re interested in becoming a safer driver. These are also called treatment programs.

Make and model of your car

Whether you have a DUI on your driving record or not, the type of car you drive impacts your insurance rates.

Where you live

The province and city you live in impact your insurance rates.

Your deductible

If you increase your deductible, you can reduce your car insurance rates. This will save you money as long you keep a clean driving record.

Time

Incidents like DUIs can remain on your driving record for years. However, as more time passes, your insurance company will reduce your rates if you are a safe driver.

Expect your insurance after a DUI to skyrocket. Making a mistake even once can have severe repercussions. It doesn’t matter what your driving history was before. The offence will remain on your record for years to come. It’s better to be safe rather than sorry to keep the roads safer for everyone.

What happens when car insurance companies find out about a DUI?

When your insurance company finds out you have a DUI, a few things can happen. Sometimes, your provider will cancel your insurance policy altogether. Some insurance companies will let you maintain your coverage but raise your rates. Others will decline to cover you. After a DUI, you can end up uninsured, which would make driving on public roads illegal.

Your insurance company has the right to refuse to cover your claims if it finds out you have an undisclosed DUI. It’s better to be straightforward with your insurance company. If you aren’t and it finds out you have a conviction, you will have to pay out of pocket for any damages that would’ve been covered by liability car insurance.

How do you get insurance as a high-risk driver?

If you are caught driving with a BAC over the legal limit or with drugs in your system, you are classified as a high-risk driver after a conviction. This makes it more difficult to find car insurance. That’s because the majority of insurance companies aren’t willing to risk insuring you.

What do you do if your insurance company cancels your policy after learning of your conviction? You have to find a new insurer. To find an independent high-risk insurance company, you will need to enlist the help of a broker. Brokers earn a fee by connecting drivers, such as those with DUIs, with an insurance company that will take them on. The broker fees combined with the price of your premiums should encourage you to get quotes from various brokers to explore your options.

If you have been convicted more than once or are classified as a high-risk driver, finding an insurance company is challenging. Sometimes, you won’t be able to find an insurer who’s willing to take you on. When this happens, you will have to go to somewhere called the Facility Association. It’s an insurer that provides you with coverage despite the risk. Keep in mind that you should only do this as a last resort because the rates will be very high.

Will providers ever lower your insurance premiums again?

In short, those with DUIs are considered high-risk drivers and will have to pay for it for years to come. DUI insurance rates are generally much higher, but they don’t last forever. If you maintain a clean driving record and avoid filing claims, your car insurance rate will decrease. After many years, you will be able to purchase affordable car insurance once again. However, cheap DUI insurance doesn’t exist.

In Ontario, the conviction will remain on your record for three years. A licence suspension from a DUI conviction will stay on your record for at least six years. If your driving record is otherwise clean, you should be able to purchase auto insurance at a standard rate in your area. Remember, you don’t have to tell your insurance company about your DUI conviction if at least six years have passed.

A DUI can raise your car insurance rates

Getting a DUI is guaranteed to raise your car insurance rate. Most drivers need to find a policy from a car insurance company that specializes in high-risk drivers, such as those with DUIs on their driving records. These policies come at a much higher monthly/annual premium. Remember, a DUI will stay on your record for a while and affect car insurance rates as an accident does.

A DUI can cause you to pay up to five times more for car insurance than someone with a clean driving record. The amount varies depending on other factors, such as the area you live in and the number of claims you make. Subsequent DUI charges can increase your rates even more. This doesn’t include the costs of legal fees, fines, and licence suspension.

Ways to lower your car insurance rates after a DUI conviction

A DUI is a serious offence. As mentioned earlier, it can have a massive effect on your auto insurance rates. If convicted, you will lose your driver’s licence for three months. However, once you can operate a motor vehicle again, you’ll likely need a new insurance policy. DUI car insurance can be helpful because few insurance companies will take you on after your conviction. Until enough time passes, you will be paying much higher rates. Despite this, you can do a few things to reduce your risk level:

Shop around for auto insurance

Similar to when you purchase or renew car insurance, you should compare rates from different companies. Car insurance will always be more expensive for you than someone with a clean record. Despite this, you might find somewhere with a more affordable rate than your current insurer. Ask an insurance broker to look for an insurance company that takes on high-risk drivers.

Drive less frequently

When you get on the road at all, you are taking a risk. If you are considered a high-risk driver, you will be paying more when you are behind the wheel. Consider taking public transit from time to time. Many insurance companies offer discounts to drivers with low annual mileage. This can be helpful when you have to pay extra for an auto insurance policy because of your past actions.

Enrol in driving school

Having a DUI on your driving record makes insurance companies see you as a high-risk driver. That’s why it’s important to show your current provider that you’re taking responsibility for your actions. Taking a defensive driving course can dent your insurance rates after a while. New drivers aren’t the only ones who can benefit from lessons.

Drive safely

Driving under the influence is never a good idea. Next time you go out for a drink, take a cab or public transit home to avoid the risk of another DUI charge. After all, subsequent offences carry more severe consequences. Why take the risk? If you avoid driving under the influence and follow our safe driving tips, your auto insurance policy will slowly become less expensive.

Wait a while

There’s an expression that goes: “Patience is a virtue.” This is especially true when it comes to waiting for your auto insurance rate to go down following a DUI conviction. Your driving record will be wiped clean after three to six years have passed. Despite it being a very serious offence, your rates won’t remain high forever.

Preventing DUIs and expensive car insurance rates in the future

As your insurance agent will tell you, avoiding another conviction is an essential piece of the puzzle when it comes to keeping your car insurance rates low. There’s nothing wrong with a fun night out, but you should be careful and aware of the legal penalties that come with impaired driving. That’s why we have prepared a list of tips to prevent you and people you know from driving impaired:

Get a cab or a rideshare or walk

You should always make sure you have enough money for a cab or rideshare when you go out. If you have had a couple of drinks, it’s better to call someone to pick you up. It doesn’t matter whether it’s a big yellow taxi or an Uber. If you and your friends live close to one another, consider splitting the costs and having your ride make a couple of stops. If you live down the street, consider walking home as a group — it’s safer than driving under the influence.

Have a designated driver

If you plan on drinking, you should make plans for a ride home. Make sure one of your friends isn’t drinking so they can drive everyone home safely. The other option is hiring a designated driver from a local service. Around the holidays, there are volunteer organizations that you can call or text to drive you and your car home safely. Either option is viable because it’s better to get home safely than potentially take a life.

Plan a sleepover

The night doesn’t have to end! Ask the host if you can spend the night at their house if you are visiting a friend. This will give you time for the alcohol to make its way out of your system and to feel better before heading out. You don’t just keep the party going — you keep people on the road safer. After a good night’s sleep, you can safely drive back home in the morning after a hearty breakfast!

Be a responsible host

Hosting a party is a big responsibility. In addition to ensuring everyone is having a good time, you have to ensure everyone has a safe way home. Having some drinks with friends at a dinner party is fun, but no one should drink and drive. As a host, you should help make arrangements for your guests, such as a designated driver or a cab home. For more information, read our blog about Host Liquor Liability 101.

Don’t drink

Not everyone needs a drink to have fun. Drunk driving or driving under the influence of drugs isn’t safe and can have serious consequences. Is having a drink really worth the risk of higher premiums and criminal charges? We didn’t think so — making the responsible decision shouldn’t stop you from having a fun time out with your friends. In fact, you should take pride that you are keeping yourself and other drivers safe from the dangers of impaired driving.

Contact BrokerLink to find the best car insurance rates

Finding affordable car insurance is difficult enough, but it becomes even more challenging when you have a DUI conviction. That’s where an experienced insurance broker can help you out. At BrokerLink, we understand the difficulties high-risk drivers have while searching for an auto insurance policy. That’s why we will work with you to find an insurance company that will offer you an affordable rate.

When you purchase car insurance, you get to choose the types of coverage you use, with the exception of mandatory coverage. Finding the type of coverage you need is easy when you have a broker by your side. You can choose from the following types:

• Third-party liability coverage
• Accident benefits coverage
• Direct compensation - property damage coverage
• Uninsured automobile coverage
• Collision coverage
• Comprehensive coverage
• Accident forgiveness coverage

Do you need DUI insurance? Maybe you’re looking for more affordable auto insurance. No matter what the case, BrokerLink is here to help. Give us a call, visit us in person, or get a free quote online today.

Get an auto insurance quote 1-866-724-2372

How DUIs affect car insurance rates FAQs

How much does car insurance go up after DUI?

Your insurance rates after a DUI conviction will depend on your driving record and other factors. Most of the time, those with DUIs pay three to five times more than those with a clean driving record. Work with an insurance broker to find an insurance company willing to take on high-risk drivers, such as those with DUI convictions.

Do I have to tell my insurance company about a DUI?

Yes, you have to tell your insurance company about a DUI. It’s because if you have to make a claim later, they have the right to void your insurance. It’s your responsibility to let your insurer know about the conviction, which bears similarities to having to report a car accident in Ontario. As a result, you might not have insurance after a DUI.

How long does a DUI stay on my driving record?

A DUI has serious consequences. How long it stays on your driving record depends on the province in which you live. Regardless of where you live in Canada, a DUI will have long-lasting repercussions. Generally, a conviction stays on your driving record for three to six years.

Should I get a lawyer to help with my DUI case?

Because of the serious consequences of a DUI conviction, we recommend hiring an experienced DUI lawyer to advise you. Seek legal advice from the moment you are accused of breaking the law. Your lawyer might be able to protect you from more severe penalties.

If you have any questions, contact one of our local branches.