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A DUI (Driving Under the Influence) or major traffic violation can have significant consequences on auto insurance in Beloit, WI. When a driver is convicted of a DUI, insurers view them as a high-risk driver, leading to increased premiums. Major violations like reckless driving or speeding can also cause substantial rate hikes and have a long-term financial impact.
Higher Insurance Premiums
After a DUI or major violation, auto insurance premiums typically increase dramatically. Insurers see these offenses as risky behavior indicators, compensating for the likelihood of future claims by charging higher rates. Depending on the severity of the offense and the driver’s record, premiums could double or even triple. Some insurance companies may refuse to renew policies altogether, forcing the driver to seek coverage with higher-risk, more expensive insurers.
SR-22 Requirement
In many states, a DUI or serious traffic violation requires the driver to file an SR-22 form, which proves that they carry the state’s minimum liability insurance. This form, filed by the insurance company with the state, is often necessary to reinstate driving privileges after a suspension. SR-22 coverage is typically more expensive and remains on the driver’s record for several years, further increasing insurance costs.
Long-Term Effects
A DUI or major violation can remain on a driver’s record for up to 10 years, depending on state laws. During this time, the driver will likely face inflated insurance rates. However, with time, a clean driving record can help reduce premiums. Some insurers offer discounts or forgiveness programs after several years without further violations.
Contact Senz Insurance Agency Inc. for More Information
Senz Insurance Agency Inc. is here to answer all your insurance questions. We serve Beloit, WI, and surrounding cities. Contact us today.
