Automobile Insurance Issues

//Automobile Insurance Issues
Automobile Insurance Issues 2017-11-13T15:30:12+00:00

It is important for you to understand that your insurance company for your motor vehicle is assessing you on multiple factors to determine the premium that you will pay. Automobile insurers use scoring that includes credit card data when they determine your automobile insurance policy premium rates. Your credit reports put you into a class system to determine your pricing tier. Insurers make their decisions on a correlation between the scores determined for customers and the probability that a customer will file a claim.

DUI and Insurance Score

If arrested for DUI, it will directly impact your insurance score. You can realistically expect to pay hundreds more a year for your first DUI offense. Also, you’ll have to pay much more for consecutive offenses. Many insurance companies check your motor vehicle history only once every three years. Or, they might check when a person applies for a new policy. Sometimes accidents, tickets, and drunk driving convictions escape your insurer’s attention. However, if your insurer does find out about a DUI conviction or driver’s license suspension, your rates will likely increase. They might even cancel your policy altogether.

SR-22 Form

There are basically two ways that insurance companies deal with customers who have been convicted of DUI. The first way is that the insurer will likely raise the insurance premium and label you a high-risk driver. In this case, you will likely have to provide proof of insurance for up to five years with the state of Connecticut DMV.

Your insurance company will have to provide the DMV with an SR-22 form, which removes your license suspension by providing the state with proof of insurance. An SR-22 form also means your insurance carrier must notify the DMV if it cancels your insurance for any reason. Also, your insurance company may cancel your insurance midterm or terminate the policy at the end of the term because you have a preferred class. Your insurance company will send you a notice stating why they cancelled the policy. Then you will have to find another car insurer while having a cancellation on your claim history.

No SR-22 Policy

Some insurance companies don’t offer SR-22 policies. So, you may also be non-renewed or cancelled because your insurance policy can no longer provide what you need. Insurers can miss DUI convictions sometimes and it is possible that your insurance company will never find out about your conviction, especially if you don’t have to get an SR-22. Keep in mind that insurance rates don’t always go up. You might be surprised to know that when your insurer does find out about a DUI conviction, it doesn’t automatically impose higher premiums. The insurer will look at your history with the company and your claims record when making their decision.