Car Insurance Rates Rising for DWI Convictions

You might want to think twice about driving home after having too many drinks at that Labor Day party you attend. You could save yourself thousands by springing for a cab fare home.

According to new information presented by Insurance.com, car insurance rates have risen across the board, but premiums for male drivers convicted of driving while intoxicated or driving under the influence, called a DWI or DUI, have risen even faster. DWI auto insurance rates usually remain elevated for at least five years after the conviction occurs.

“It more than pays for a cab ride home if you have had too much to drink,” commented Sam Belden, the VP of Insurance.com. “It has always been more expensive if you have a DUI than if you don’t, and now it is even more acute.”

Car insurance companies cite rising auto-accident costs as the reason for increasingly expensive policy premiums. Progressive, a major insurance company, reported seeing increases in the both the severity and frequency of car accidents in the second quarter, and the market has begun to respond accordingly.

Although all drivers’ premiums have increased over the last year, the increase is more marked for policyholders with a DWI conviction, particularly if the offense occurred at the same time as an accident.

Male drivers who had a DWI conviction paid an average of 24 percent more annually for car insurance in 2009 than men without convictions, which represents a 22 percent rise from last year. Premiums for women with DWI convictions, on the other hand, stayed the same from 2008 to 2009. On average, women with DWIs pay about 28 percent more for auto insurance.

According to Insurance.com, the average annual insurance premium in the United States for men with DWI convictions is $2,113, which is $408 more that what a violation-free male driver would pay. Likewise, women with a DWI pay an average of $2,199 annually for auto insurance, which is $478 more than they would pay without violations. If the DWI violation was associated with an accident, male drivers can add another $214 to their annual bill, and female drivers can add $185.

In the United States, the most expensive state for male drivers with DWI convictions is Rhode Island, where drivers with DWIs can expect to pay an average of $3,485 annually for auto insurance. The priciest state for women with DWIs is New Jersey, where female drivers with convictions will pay an average of $3,184 annually for insurance.