How a DUI (Driving Under the Influence of alcohol) impacts your car insurance is going to vary by car insurance company, by state and by situation. Some car insurance companies don't review their drivers' records for several years and they may miss DUI convictions, while others are very diligent about maintaining and updating their drivers' records. In these cases, you can feel the impact of your DUI on your car insurance almost immediately.

A DUI Can Lead to a Premium Rate Increase

The first effect that a DUI can have on your car insurance is that it can raise your premiums. When a car insurance company finds out that you have a DUI conviction, they will generally label you as a high-risk driver and raise your insurance rates by 100, 200 or even by 300 percent. If you think that you can avoid a premium hike by concealing your DUI conviction, you are out of luck. Most states today send SR-22 forms to insurance agencies when their driver has been convicted of a DUI. This form is a proof of insurance form that must be completed and filed with your state's DMV.

Policy Cancellation After a DUI

Another effect that a DUI can have on your car insurance is that it can lead to the cancellation of your coverage. However, this is up to the discretion of your car insurance agency. If you have never filed a claim before or if this is your first DUI, then they may simply raise your premiums. However, if you have previous offenses that have labeled you already as a high-risk driver, then chances are they will cancel your policy. Finally, some insurance agencies have a "no SR-22" policy. This means that they will not insure someone who has been convicted of a DUI.

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