Insurance Rules verses DWI
Insurance and DWI
A charge under Driving while
Intoxicated (DWI) offense results in a serious impact
on the automobile insurance. A DWI conviction generally
leads to a rise in insurance premiums. This increase
depends on two factors, firstly, the insurance company
should know about the DWI conviction and secondly the
related DWI insurance rules pertaining to the insurer.
DWI insurance
is a must for car drivers, hence it becomes important
to get professional advice when charged with DWI offence.
Insurance Regulation on DWI Conviction
- Drivers charged with DWI conviction should be ready for a rise in insurance premium which would range from 70% to 280%. Previous driving records and DWI convictions decide the rise in insurance rates.
- The insurance companies come to know about such DWI
conviction by running through the driver’s DMV records.
It happens mainly in case of new applicants. Details
pertaining to existing clients depend on the frequency
of verification by the respective insurance company.
- Any alcohol related conviction is treated similarly for the purpose of insurance.
- After a DWI conviction, while some insurance companies retain the drivers at an increased premium others do not renew the policy at all; under such circumstances the state fixes the insurance premium and the insurance company for the respective drivers. This is called a risk pool.
- The alcohol counseling program ‘Defensive Driving Course’ offered by the National Safety Council alone is recognized for reduction in insurance premiums.
- The insurance companies are required to consider the conviction for not more than 39 months.
- Where an accident has taken place, the driver is required to inform the insurance company regarding the accident and any alcohol related offence committed. There is no contractual obligation on the part of the client to report a DWI conviction to the insurance company.
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