My Personal Finance Blog

In case you are caught being drunk behind the wheel your insurance rates will increase and you will most probably learn about a thing known as SR-22 to many. And it doesn’t matter what it’s called in your state – driving while being under influence or intoxicated – the result is the same. Your insurance rates rise dramatically even before you can actually drive a vehicle again.

The laws are different

Different states have different penalties regarding drunk driving, but in all states you will be denied of the right to drive for a period of time (starting with 30 days to 12 months). And in order to get your license back and drive again most states require you to present SR-22 form proving availability of necessary auto coverage. Such form can be presented by the insurance company unless your policy is lapsed, canceled or terminated.

Premiums will rocket sky-high

When time comes for taking the SR-22 form from your insurance company, the company will automatically put you in the “high-risk driver” category, which eventually means that your rates will go up. And by “go up” we mean double or even triple according to state you’re registered in. Of course, you can shop around as there are insurance companies with “high-risk” specialty.

SR-22 policies are not that accessible

Certain companies do not provide SR-22 insurance coverage, and if you’ll require one from them after being convicted in drunk driving, they are likely to cancel your policy. It will require you to address a company that provides SR-22, however your premiums will still be higher because you will already have a history of policy cancellation. However in some states, insurance companies have no right to cancel your policy before its term expires. So check your local laws to know better.

How long will it last?

This also depends on the state you live in, but the usual picture is that you will have to pay higher premiums for at least three years after being convicted. And if you’re caught driving under the influence again there will be more serious penalties.

It also depends on the condition you’ve been in while driving. In most states there are stronger penalties for increased alcohol blood levels, passengers (especially kids) in the car, damage to property or injury to people done and other factors involved.

How to avoid increased rates?

The most drastic measure to keep your auto insurance rates low is not driving at all after being convicted in drunk driving. Even if you were driving a car you don’t own you will still have to present a SR-22 form in order to restore your driver’s license.

Of course, there’s still the most effective way of keeping your auto insurance as it was. Simply don’t drive while being drunk, intoxicated, under the influence or any other altered state of mind. It will not only save you auto insurance but will save your and someone else’s life. If you’re messed up, call a taxi or ask your sober friend to drive. It’s not that hard, isn’t it?

Remember, the general rule always has exceptions. So when everyone tells you insurance companies load up the premiums of the inexperienced drivers and the drivers who have a bad safety record, that is true as a general rule. But this does not mean it’s impossible to find reasonably cheap insurance. All it means is you have to work harder to get results. So the first rule is, “Never give up hope!” There are always ways in which you can save on the premium and find reasonably good coverage. Who are you? You may:

• be a new driver;
• have been involved in multiple traffic accidents;
• have been convicted of driving while under the influence or other serious offenses; or
• have had you license suspended and/or your previous insurance cancelled.

The second rule is always to tackle the problem honestly. It is pointless to lie about your record. Even if the lie goes undetected when you buy the policy, every company makes thorough checks once a claim is made. If your dishonesty turns up, the company will cancel the policy and you will be left with no indemnity against the claim. Be open about your high-risk status and get two sets of quotes using the online search engines. You should aim to compare the prices on general policies with the premiums charged by the companies offering special policies for drivers with poor records. The bad news is the majority of general insurers will refuse to quote or quote high premiums. These are the companies only writing policies for people aged between 25 and 70 who have never had an accident in their lives. The quotes you get are still useful because you find out which is the lowest of the high quotes. The good news is there are a small number of companies offering a specialised service to high risk drivers. Ask for high risk auto insurance or nonstandard auto insurance and get their quotes.

The third rule is to improve your driving ability and record. If you are a new driver or have recently had a serious accident, go through one of the advanced driving courses approved by local insurance companies. Successful completion usually entitles you to a discount. You then have to put all you best driving skills into practice and drive without collecting tickets and getting into accidents. The longer your license stays clean, the lower your premium will be. Sadly, it takes years to remove the negative marks from your record but, once you have proved you are a good driver, you will be rewarded.

The final rule to find every possible discount to bring the premium down. Drive a low-powered vehicle only at low-risk times of the day and avoid driving long distances. Fit safety features to your vehicle and store it off the road at night. You may not end up with really cheap auto insurance, but it should be reasonably affordable. In any event, cheap auto insurance is often bad value for money. It’s always better to find good coverage at a price you can afford.

When you are searching for a car insurance online quote there are a few things you should keep in mind. If you are well informed you can save a lot of money. Purchasing the car insurance online is the best choice you can make. You have the opportunity to compare more quotes and to pick the best price.

The first tip is to learn more details about each level of cover. If you want to have a high level of cover you will also pay more money. The most expensive insurance is the comprehensive one. If you don’t think you really need that type of cover you can choose a cheaper one. Try to decide what are your insurance needs.

Try to compare as many online quotes as possible. Invest a few hours and you will be able to save hundreds of dollars. Try to send an email to all the insurance companies you find. Ask them to let you know about any special deals they might have.

In order to get an accurate quote you need to give all the required info. If you prefer not to reveal any personal details you will have to accept a general quote based on your demographic area.

Some people are considered to be high risk drivers. This happens usually if a person was involved in a lot of car accidents. The young drivers are also high risk drivers. In this case the price of the insurance will be higher. Try to improve your driving skills by applying to a driving course. In time you will be able to get a cheaper insurance. Young drivers should share the insurance with one of the parents.

The type of car you are driving is also very important for getting a cheap insurance. Try to pick a safe car. Usually the insurance cost for a sport car is higher. This is a good tip especially for young drivers. For a few years you can share the car with your father or mother. This will give you time to get some driving experience and to prove that you should not be considered a high risk driver.

Check more forums and message boards to find out where you can purchase the cheapest car insurance. The best way o find out this is by asking other people. Learn from their experience and save money.

Another important thing is to find a reliable insurance company. Check if the insurance company has a good reputation or not. You can easily do this by using a search engine. All you have to do is to type the insurance name. In case you find complaints from other clients you should look for another company.

If you compare more auto insurances online you can succeed to find a very cheap insurance. Make sure you look for special offers too. Some companies will post on their website news about the reductions they have. Take advantage of this. Another good tip to save money is purchasing more insurances from the same company.