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How does an OWI impact auto insurance rates in Indiana?

On Behalf of | Nov 27, 2023 | Criminal Defense

Driving under the influence of alcohol carries serious consequences, not only in terms of legal penalties but also in other aspects of life. In Indiana, an Operating While Intoxicated conviction can significantly impact your auto insurance, leading to increased premiums and potential policy changes.

It is important to understand how such a conviction influences your insurance coverage. That way, you can make informed decisions and navigate the implications of an OWI conviction responsibly.

Surge in insurance premiums

An immediate consequence of an OWI conviction in Indiana is an increase in auto insurance premiums. According to Insure.com, annual insurance rates increase by an average of 37%, about $393 per year, after a conviction for drunk driving. This is because insurance companies perceive individuals with DUI convictions as higher-risk clients, resulting in a spike in premiums. The severity of the increase may vary based on factors. These factors might include your driving history and degree of intoxication, among others. Expect these heightened premiums to persist for a long time, impacting your financial commitments related to vehicle ownership.

SR-22 insurance requirements

Following an OWI conviction in Indiana, you may need to get SR-22 insurance. This is a document proving that you have the minimum liability coverage mandated by the state. Insurance companies typically file the SR-22 on your behalf, but the added administrative tasks contribute to the overall impact on your insurance experience.

Policy non-renewal or cancellation

In some instances, an OWI conviction can lead to non-renewal or cancellation of your existing auto insurance policy. Insurance providers may reassess the risk associated with covering a driver with a DUI conviction and decide to discontinue his or her services. This outcome can pose additional challenges, as finding new insurance coverage may prove more difficult and expensive.

An OWI conviction in Indiana casts a lasting shadow on your auto insurance. Understanding the consequences of an OWI helps you make educated decisions about insurance coverage after a conviction.