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Insurance: The effect of DUIs on Policies

Think logically, if you were an insurance firm and one of your clients were to have one or multiple driving under the influence flags in his profile, you would be wary of giving that client preferential or even normal treatment.

The risk of an accident happening is much higher and the amount of money that could be lost is also much greater. The severity of your driving offence determines a lot of courses of action that insurance companies may take with regards to your insurance policy. Life insurance with a DUI on record can become incredibly difficult to obtain at practical rates. Insurance firms may increase rates, force higher interest policies or even cancel your policy in its entirety.

The SR-22 form is the most recognizable element of the process after the reinstatement of driving privileges and driving license. The SR-22 form’s concept is simple. It is a form that you or your insurance firm must file with the Department of Motor Vehicles in your relevant state. This form verifies the existence of valid insurance coverage.

Following a DUI, or other serious incidents such as excessive speeding or other moving violations, most states require the form to be filled in. The SR-22 form is often required to be filled for up to three years following the suspension of driving privileges. The requirements are pretty stringent, as cancellation of an insurance policy notifies the state police to be on the lookout for a former DUI offender with canceled insurance policies.

This does not mean that former DUI offenders cannot attain life insurance. Guidelines for most standard insurance firms dictate that anyone with a DUI in the last three to five years may qualify for standard policies. If there are no other offences on your profile then you may still receive a low premium offer with an affordable interest rate. If your health has been historically poor though, you may not qualify for special preferred or super preferred ratings which lower premiums until at least five years after you receiving your DUI.

Failing to notify the authorities your DUI on your forms amount to false material misrepresentation which makes one legally liable and provides very little scope for recourse. Few companies also deny coverage to those with recent DUIs. Full and complete disclosure is often the best method to provide information as you will only hurt yourself by hiding anything. The most effective method of finding a suitable life-insurance with a DUI on record is to compare between the policies of different firms. There are a plethora of very easy to use tools across the internet which allow one to browse through the policies of separate firms as effectively as possible. One important thing to remember is that the same regulations and minimum requirements for insurance coverage apply to former DUI offender as they do for ordinary law-abiding citizens. The DUI offender has it reported in his driving record and insurers generally assess the future risk of the driver’s life.

Peter Christopher

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