Questions:

1. What is an SR-22?
2. How do insurance companies calculate risk?
3. How long does a DUI Conviction affect my premium?
4. What if I can't get insurance after DUI conviction?
5. DMV point system?

DUI & Car/Auto Insurance Issues

A DUI can cause many problems with respect to your car insurance.  These problems occur because of a mere DUI arrest.  In fact even if the drunk driving charges are dropped in the court proceedings (for example, your DUI case gets dismissed), you could still have problems just because of the arrest only.

When you are merely arrested for DUI, the cop that arrested you is going to send specific forms to the DMV.  These specific forms document all the facts the cop thought were important to convict you at court.  They are all related to your arrest for suspicion of DUI.  They are also referred to as “sworn statements,” “police reports”, “evidence” or “discovery”.

When the DMV receives the discovery from the cop that arrested you for DUI, they will do a short and casual review of it.  If the necessary, minimum information is found in the discovery, by a cursory and usually inexperienced review by a DMV clerk, then a drivers license suspension will be imposed 30 days after your arrest.

Yes, a suspension can be imposed only because you were arrested for suspicion of DUI.  The DMV does not need to wait to see if the court is going to convict you of DUI before they can suspend your driving privileges. 

This is why it is so important that if you or someone you care about has been merely arrested for DUI, that they contact an experienced and aggressive DUI defense attorney who specializes in drunk driving defense.

The suspension will start on the 31st day after your arrest, unless you demand a DMV Administrative Per Se (or “Admin Per Se”; or “APS”) hearing within 10 days after the date of your arrest. 

The length of the suspension depends on many possible factors that may exist in your case.

If you did request a hearing following the DUI arrest and you win at the hearing, the suspension will be set aside.   If you are unsuccessful at the hearing, then the suspension will be imposed sometime after the hearing.

If your drivers license is suspended because you were arrested for DUI, then you will have what is referred to as an APS suspension on your driving record.  The presence of the APS suspension on your driving record can be something that causes problems with your car insurance.

If you are later convicted of DUI, the court will update the DMV’s records directly.  This means that the DUI conviction will go on your driving record.

Some insurance companies will randomly or periodically check your driving record to assess your risk as an insured.  Generally, insurance companies check your driving record at the time you renew your insurance.

Some insurance companies check randomly or periodically during the course of an insurance policy, thereby constantly assessing the risk that you pose as one of their insured drivers.  If there is a change in your driving record it could cause an increase in your car insurance premium even when you are in the middle of a policy.

Another problem you can run into, just from merely being arrested for DUI, is the requirement to file an SR-22.  An SR-22 is a DMV form that must be completed or filled-out by your insurance company.  This also operates to notify your insurance company that there is a problem and that they may want to run your driving record.

Regardless of when they check your driving record, once they learn of the DUI related problem, they will usually take some action. 

What, if anything, your insurance company will do depends on your driving record and the insurance company.  If you already had issues on your driving record prior this new incident, this could increase the severity of the action taken by your insurance company.  Possible car insurance problems arising from a DUI arrest include an increase in your premiums or cancellation of your policy altogether.

Some car insurance companies are very strict about the amount of risk they will allow, especially after a DUI case.  Even if this is your first bad mark on your driving record and you have been with this car insurance company for many years, these insurance companies will cancel you or refuse to renew your policy after a current term expires.

Again, this is why it is important that if you or someone you care about is arrested for DUI, that they contact a DUI defense attorney who specializes in DUI defense.

What is an SR-22?

An SR-22 is a state-designated title of a California DMV Form that California requires some drivers to file.

As you may or may not know, California requires that everybody who drives a car in the state have car insurance.   The state refers to car insurance as financial responsibility. 

In addition to having car insurance, all drivers carry proof of car insurance in their car while driving.  If a cop stops you for violating a driving law and asks you to show proof of insurance, the law requires you to show him proof of car insurance.  If you fail to do so, you can be cited (or given a ticket or citation).

Generally, the citation issued is a “fix-it-ticket” if you had insurance when you were stopped but did not have proof of the car insurance in your car.  However, if you did not have insurance, you could be looking at expensive fines and your car could be impounded and possibly sold at auction if you fail to pay impoundment fees.

California believes that some people are higher risk drivers, than others.  Those people who California has deemed a higher risk are required to have formal proof of financial responsibility or car insurance.  This formal proof of insurance is called an SR-22.

The following, although not an exhausted list, are some of the circumstances where the DMV has deemed a driver to be a higher risk, and therefore, must file an SR-22 before their driving privilege will be reinstated:

• Drivers who receive a certain amount of DMV points within a short period of time (Negligent Operators).
• Drivers who have been arrested and/or convicted of DUI.
• Driver’s who did not have insurance when they were in an accident.
• Driver’s who unlawfully refused to take a chemical test when requested by law enforcement.

To obtain an SR-22, you must contact your car insurance company.  Your car insurance company will complete the SR-22 and they, or you, then must file it with the DMV.

Unfortunately, when you request that your car insurance company file an SR22, this will alert your insurance company of problems in your driving record. 

An SR-22 may increase your risk rating with your auto insurance company.  This will trigger a possible increase in your insurance costs.

In situations where your driving privileges were suspended for any period of time and the DMV is requiring you to file proof of financial responsibility (SR-22), they will not reinstate your driving privileges until an SR-22 is filed.

It is important to note that an SR-22 is “policy specific”.  This means that an SR-22 is tied to an insurance policy for purposes of expiring. 

The information included in an SR-22 is the term, in time, of your insurance policy.  Every time you renew your insurance, you must have your insurance company file a new SR-22.

For example, generally, the DMV requires an SR-22 for three years.  Most people renew their insurance every 6 months to 1 year.  If you renew every 6 months, then you would have to file 6 separate SR-22’s for the next three years.  Those people who renew once a year would be required to file 3 SR-22’s over the next three years.

If you fail to file a new SR-22 every time you renew your insurance or if there is a lapse in your insurance coverage, the DMV will suspend your driving privileges until you file a new SR-22, thereby satisfying the requirement.

An SR-22 requirement is a problematic burden.  Moreover, if the burden is not met, your driving privileges will be suspended.  This could result in you driving on a suspended license because you never received notice of the suspension or you just needed to get to work.

If you or someone you care about has been arrested for DUI or given any form of notice that the DMV intends to suspend your license, it is important that you contact a criminal defense attorney who specializes in DUI defense and DMV issues.

Negligent Operators

California uses a point system to track performance, or lack thereof, of drivers in the state.  When a driver receives 4 or more points within 12 months; or 6 or more points in 24 months; or 8 or more in 36 months, the DMV may deem them a Negligent Operator.   California drivers accumulate points for certain types of conduct associated with driving.  Most court convictions (traffic tickets, misdemeanors & felonies usually associated with driving) and accidents cause drivers to accumulate DMV points. 

A driver can receive anywhere from 0 to 3 possible points per occurrence of a court conviction or accident.

 Accumulating too many points can trigger the DMV to take a Negligent Operator action against your driving privileges.  Generally, the DMV will place your driving privileges on a probationary status for one year. 

In addition, the DMV will suspend your license for a period of 6 months; however, the suspension will run during the probationary period and generally starts 34 days from the date you receive an order of suspension. 

While on probation, if you receive any more points, the DMV will suspend your license for an additional 6 months and extend your probationary status out for another year.

Anyone found to be a negligent operator is required to file an SR-22 for three years.  The three years starts to run from the date the DMV restores your driving privileges.

Keep in mind that the DMV will not restore your driving privileges, even after the suspension period runs, if you have not filed an SR-22 and paid applicable fees.

If you or someone you care about has received a Negligent Operator-Order of suspension from the DMV, you should contact a criminal defense attorney who specializes in DMV issues.  Generally, it is possible to avoid the suspension period all together; however, you must take the necessary steps to enforce your rights.

Drivers who have been arrested and/or convicted of DUI.

How do insurance companies calculate risk?

Insurance companies are in the business of making money.    Like all businesses, the goal is to sell a product for more than it costs to make or provide it. 

In addition, when you make your insurance payment, the insurance company invests the money to earn a return.  In fact, you may remember hearing about costs of workman’s comp insurance going up right after the stock market fell in the early 2000’s.  This was primarily because of the loss the insurance companies realized when the premiums they invested were not as profitable anymore.

The product they sell is piece of mind or security; however, arguably, some insurance companies sell more grief than piece of mind or security.  This is why it is important to take all steps available to you to keep your driving record in good standing.  If you or someone you care about is arrested for DUI, it is important that you seek the advice of a DUI defense attorney who specializes in DUI defense.

The costs of selling the product include the normal administrative costs, generally called overhead or costs of doing business.  These may include employee wages, rents or mortgages, supplies and insurance.

Their greatest cost is risk.  Generally, people think of risk as those dangers people face when jumping out of a plane, getting into a relationship, purchasing a home, climbing Mount Everest or investing in your friend’s entrepreneurial venture.

Insurance companies view risk as the possibility they may have to pay money because you, their insured, is involved in an accident and it was NOT the other guy’s fault.  This means the insurance company is on the hook to pay for any damages you caused.

Risk is all the insurance companies have when assessing how much money they should charge you to provide you with piece of mind.  Generally risk is probability:  the probability that you will be involved in an accident and the probability of the severity of the accident.

When assessing risk, insurance companies take into consideration a multitude of factors.  Your age, sex, where you live, the type of car you drive, how many cars you drive, the type of driving you do, and even your credit report. 

A person called an actuary looks at all the information about you, or people like you.  He then takes this information, compares it against his charts and scales and then does some highly sophisticated calculations.  When he is done, he then tells the insurance companies how great of a risk you, or people like you, generally are.

This information is put into charts that the insurance companies use.  When you contact an insurance company or agent, they generally ask you the same set of information.  With this information, they gather other information like your driving record and/or credit report. 

Once they have all this information compiled they put it into their super-computers and out come your insurance costs based on your specific risk.

The most significant factor is your driving record.  The insurance companies look to see if you have had any accidents or traffic violations on your record.  They believe that traffic accidents and violations are a clear indicator of the abilities and awareness of a driver.

Obviously, someone who is involved in many accidents has a higher probability of getting into more accidents; therefore, they are a greater risk.  Same with traffic violations which they believe is another factor that increases a person’s probability of being involved in an accident. 

Most traffic accidents are directly caused by vehicle code violations.  For example, speeding, not stopping at stop signals, turning left in front of (failure to yield to) oncoming traffic and following too close are some of the more common violations that cause auto accidents.

Many states like California assign a points system to certain traffic violations.  When a person is involved in an accident or is convicted of violating a traffic laws, their driving record accumulates points each time.

The California DMV keeps track of how many points you receive.  If someone earns too many points, their privilege to operate a motor vehicle in the state can be suspended, revoke or placed on a probationary status.  Someone who has earned too many points can be served with a Negligent Operator action.

A DUI conviction causes two points to be added to your driving record.  Insurance companies believe that people who drink and drive run a great risk of being involved in an accident, as well as causing a great deal of damage, great bodily injury and/or death.  So in addition to the two points a DUI conviction carries with it, car insurance companies assign additional risk to those convicted of DUI.

It is important for everyone to keep their risk low so as to avoid higher insurance costs or having their insurance cancelled.  This is only one reason why if you, or someone you care about has been arrested for DUI that they immediately seek the help of a DUI defense lawyer.