Media post: Does a Suspended Driver’s License Increase Your Car Insurance Rates?
As a matter of fact, yes, it does. It’s technically the violation(s) that caused your driver’s license to be suspended that raises your auto insurance premiums. A license can be suspended on account of traffic violations and can result in a monthly $120.25 increase in auto insurance premiums. This is based on averages as every insurance company gauges their premiums differently, but the point is that after a suspended license, your insurance rates will definitely not remain the same. However, that doesn’t mean that finding affordable car insurance is impossible.
When Could Your Driver’s License be Suspended?
There are many violations that can result in a suspension of your driver’s license. Some of which may not have anything to do with your car or driving. You can have your license suspended on account of:
- DUI
- Driving with no insurance
- Several traffic citations
- Missing child support payments
- Not appearing in traffic court
- Three minor violations in six months
What Happens When Your Driver’s License is Suspended?
Upon suspension of your license, both your driving privileges and car insurance are compromised. Of course, the thing on everyone’s mind when they have their license suspended is how fast they can reinstate it. Your car insurance will play a major role because, in order to get your license back, you will have to provide proof of insurance to your state’s Department of Motor Vehicles (DMV). But as a driver with a suspended license, you are seen as high-risk by auto insurance providers, meaning you will need high-risk car insurance, also known as an SR22.
What is SR22 Insurance?
SR22 insurance is necessary when you have multiple traffic convictions or a single major violation. A DUI is the most common reason for a driver needing to file an SR-22 form, but it can also be required on account of other violations like the ones previously mentioned. An SR22 is bought through your insurance company then filed with the DMV, demonstrating that you have the required amount of coverage. SR22 insurance isn’t actually insurance, but just a certification that shows high-risk drivers have car insurance that satisfies their state’s requirements.
Where Can You Find Car Insurance After a License Suspension?
Of course, in order to get an SR22 to reinstate your suspended license, you’ll have to have car insurance. As a driver with a series of traffic violations or one major one, insurance companies may be hesitant to insure you and will either deny you coverage or charge you more than they would the average policyholder. That is to be expected since a driver’s license suspension increases insurance premiums. As previously mentioned, you can expect to pay at least $120 more in monthly insurance rates after a suspended license. But insurance shopping is important because insurers have different ways of gauging risk and reflecting it in their premiums. Some insurance companies increase rates by nearly $2,000 annually, while others increase them by $600 in a year. Local providers rather than national ones are shown to be more specialized in high-risk drivers, so it helps to pull as many quotes as you can before deciding.
How Long Does a License Suspension Affects Car Insurance Rates?
A suspended license and the violations it entails can affect your car insurance anywhere from three to five years. An SR22 is also renewed on an annual basis for around three years. A major violation like a DUI can stay on your record for up to ten years. In order to show your insurer that you are taking steps to become a better driver, you should remain violation-free during this time and take driving courses. This can help you get a head start on lowering your insurance rates.
