Among the most significant consequences of a DUI arrest and conviction in Alabama is the impact it will have on your insurance coverage. You can expect to see significant changes to your insurance coverage and premiums. This impacts all insurance – from auto and life insurance, to worker’s compensation and liability insurance coverage.
The cost of your insurance policy is most often based on how much risk you pose. For example, this could be a pre-existing health condition, multiple traffic incidents, or even a poor credit score. So too, a DUI conviction can lead to heavier insurance costs across the board.
Auto Insurance Premiums and Coverage
Notably, if you are convicted of a DUI, your auto insurance premium will, in most cases, increase substantially; furthermore, it might even be canceled outright.
There are insurance companies who will choose not to renew plans for individuals convicted of DUIs. In this case, you will be required to seek replacement insurance.
Some insurance companies will transfer your current policy to a “specialty insurance” coverage plan for approximately five years. As a result, these plans come with a significant cost increase. According to a recent article from Forbes, the average car insurance rate increase in Alabama after a DUI is 70%.
Required SR-22 Insurance
If an individual has their license revoked for a period of time due to a DUI, they will be required to seek SR-22 insurance in order to obtain a new Alabama driver’s license.
Furthermore, A DUI offender must file and maintain proof of SR-22 insurance with the Alabama law Enforcement Agency for approximately 3 years.
Impact on Life Insurance and Worker’s Compensation
Life insurance companies operate in a similar fashion; therefore, they typically deny policy issuance or raise the rates based on a DUI conviction. As a result, individuals convicted of a DUI are not likely to qualify for the best rates.
If a defendant is involved in an accident covered by worker’s compensation, a DUI conviction could lead to a claim denial if there is proof that the DUI caused the related injuries. If you are injured on the job while under the influence, this would mean you may not be eligible for your workman’s compensation.
Liability Insurance Coverage and Punitive Damages
DUI convictions can, in fact, have a significant impact on almost every form of liability insurance. Specifically, most insurance carriers have contractual exclusions related to DUIs.
For example, other parties affected by the related traffic incident may seek punitive damages.
The incident is related to your DUI conviction, therefore these punitive damages aren’t covered by your insurance policy. This means that if you cause an accident, you may be required to pay significant punitive damages out of pocket.
Need Somebody in Your Corner?
The consequences of a DUI arrest can be immediate; moreover, a conviction can affect your insurance premiums, worker’s compensation, coverage of punitive damages, and more.
It is essential to hire a lawyer who understands the ins-and-outs of DUI arrests in Alabama. Hiring reputable legal representation to help you navigate the process could potentially mitigate or reduce a license suspension or revocation.
Align yourself with an Alabama lawyer who specializes in DUIs. Contact the professional legal team at Sheffield and Lentine, P.C. for the guidance you deserve.