What Does a DWI Conviction Mean for My Insurance Rates in NC?
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Randall & Stump, PLLC
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Category Driving While Impaired, DWI
Tuesday, September 17, 2024
Insurance companies view drivers with a DWI conviction as high-risk, often resulting in higher rates for years to come. Understanding how a DWI affects your insurance and what steps you can take to minimize its impact can help you better manage the financial fallout.
To avoid the harshest consequences of a conviction, contact Randall & Stump, Criminal Defense Attorneys at (980) 237-4579 or use our online contact form for more information.
How Can a DWI Conviction Affect Your Insurance Rates In North Carolina?
In North Carolina, a DWI conviction, whether by being found guilty at trial or pleading guilty, will result in long lasting consequences, beyond having a criminal conviction on your record. The North Carolina DMV uses a point system in determining license suspensions.
After accumulating 12 license points, the DMV in North Carolina issues a revocation of that person’s driving privileges within the state. A DWI conviction carries with it 12 license points, which results in, at a minimum, a one year license revocation in North Carolina. The consequence of this revocation is that it then gets reported to your insurance company, which can cause a number of issues such as a premium increase or even worse, your coverage being dropped.
How Much Can Your Insurance Go Up after a DWI Conviction?
Given our experience handling DWI’s across North Carolina, we have heard virtually all of the horror stories related to insurance rates. Because a DWI conviction often classifies the driver as “high risk” it is not uncommon to see insurance rates increase up to 300% after the conviction is reported to the insurance company.
Even worse, a number of insurance carriers will often drop the driver’s coverage all together because they do not want to assume the risk of that person engaging in further risky driving behavior.
Can I Change My Coverage to Avoid Paying More?
Because of the financial burden of a DWI conviction, it is not uncommon for people to amend their auto insurance coverage down to liability coverage only. The problem with this is that while it reduces your premium, if you were to be involved in an accident, you may be left with a damaged vehicle or medical expenses that you then have to pay out of pocket since your policy will only cover other drivers involved.
Will I Have to Get SR-22 Insurance?
An SR-22 is a certificate of financial responsibility that proves a driver has the minimum required liability insurance after a serious driving offense, such as a DWI. While many states require SR-22s, North Carolina does not specifically mandate filing an SR-22 after a DWI conviction. However, you may need to provide proof of insurance to the North Carolina Department of Motor Vehicles to get your license reinstated.
How Long Does the Insurance Premium Increase Last?
The typical look back period in assessing a driver’s risk and premium is three years. So, the short answer based on common experience is that, if you are able to secure insurance coverage, you will be paying increased rates for at least the next three years.
For example, let’s say that your monthly insurance payment, pre-conviction, is $100. After being convicted of DWI, the rate could increase to as much as $300 per month, which is an increase of $200 per month. Paying that increased amount for three years would cost you $7,200.00.
Do I Really Need Insurance to Drive?
Yes, you must have auto insurance to legally drive within the State of North Carolina. First, even without factoring in a DWI conviction, the law in North Carolina requires all drivers to insure their vehicles. Additionally, as stated above, a DWI conviction results in your North Carolina driving privileges being revoked for one year.
Depending on the facts of your case, you may be eligible for a limited driving privilege for all, or a portion of, your revocation period. In the event that you are eligible, a judge must grant the privilege. In order for the judge to consider and ultimately grant your privilege, you or your attorney must submit proof of insurance coverage (a DL-123 form).
How to Minimize the Long-Term Impact of a DWI on Your Insurance Rates
To minimize the long-term impact of a DWI on your insurance rates, consider shopping around for quotes, as different insurers assess DWI convictions differently. Taking a state-approved defensive driving course may help lower premiums, and working proactively with your insurer to handle your SR-22 can prevent coverage lapses.
In addition, maintaining a clean driving record, increasing deductibles, bundling policies, driving a safer vehicle, and improving your credit score are other ways to potentially reduce insurance costs over time.
Charged with a DWI in North Carolina? Call Randall & Stump Today
As you can see just from this short blog, the financial costs and consequences of a DWI conviction in North Carolina extend far beyond a criminal record, which is why it is imperative to consult with an experienced North Carolina DWI attorney to determine what, if any, options you may have to challenge and potentially win your case.
To speak with an experienced and aggressive Charlotte DWI lawyer, call Randall & Stump, Criminal Defense Attorneys now at (980) 237-4579 or use our online contact form for a free case evaluation and consultation.