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Ryan Kolbeck

A DUI conviction can dramatically impact insurance costs

There are many potential financial consequences of driving under the influence (DUI) convictions. The penalties that the courts can impose include fines. If people sustained injuries or property damage losses, the driver accused of intoxication could face lawsuits that could cost them tens of thousands of dollars. There are also court costs to consider.

Having a criminal record after pleading guilty to a DUI could affect a driver’s future earning potential and career development. They could lose their job or become ineligible for professional licensing that they require for their career. They may have a harder time securing entrance into a college or similar institution and could lose out on financial aid opportunities because of their criminal record.

Despite all of those risks, many people quickly decide to plead guilty when facing DUI charges because they think that doing so is the best solution available. They may then end up paying substantially more for their car insurance coverage in the future.

How does a conviction affect insurance costs?

Every insurance provider offers slightly different rates. Drivers in different circumstances pay different prices for the same type of coverage. The factors that insurance companies consider when establishing policy costs include recent driving violations.

Even a traffic ticket can increase insurance costs. A DUI conviction can significantly increase what it costs to carry state-required car insurance. The average driver in South Dakota pays $1,708 annually for basic liability insurance coverage. They can expect their policy costs to increase by 37% on average after a DUI conviction. Drivers with a single DUI on their record pay an average of $2,347 each year for the same coverage.

Drivers with more than one DUI on their records can expect a far steeper increase in their insurance costs. In some cases, they may not be able to keep their policy. Insurance companies may cancel policies issued to drivers who represent an untenable degree of risk. People may then find themselves frantically searching for a new policy as they seek to regain their driving privileges.

Fighting DUI charges can help people control the financial consequences of a recent DUI arrest. Drivers who avoid convictions don’t have to worry about paying substantially more for insurance for years to come.

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