DUi and insurance

In California, penalties for a first time DUI can take a big chunk out of a bank account—at least $1,800 in penalties and fines, plus the cost of attending DUI driving school (if required), and the expense of installing an ignition interlock system, which courts can now require for even first-time offenders.

But there’s another expense that some drivers convicted of DUI don’t immediately consider—the huge rise that they’re likely to see in their auto insurance premium rates. According to the financial website nerdwallet.com, average good drivers in California can expect their insurance premiums to more than double if they are convicted of DUI. The nerdwallet research revealed that a 25-year old with a DUI would pay about $1,300, while one with a DUI on record would pay about $4,000. A 50-year-old who normally paid about $1,060 could expect to pay $3,275 after a DUI conviction.

The extra cost of auto insurance as a result of a DUI will depend upon:

The WalletHub website says that drivers who convicted of a DUI can expect a rate increase of as much as 30 percent on their vehicle insurance. But all drivers who have a DUI in Los Angeles on their driving record may not face that same increase. Different insurance companies handle such infractions differently and consider several factors when making their decisions.

The Consumer Federation of America has released a study saying that one big factor is how rich a driver is. In a study that tested premiums quoted by five large insurers in 10 different cities, the group found that:

•   Upper-income drivers with DUI often pay less than good drivers of moderate means with no accidents or tickets on their driving records. (70 percent of the 30 test cases.)
•   Moderate-income drivers with perfect records pay more than upper-income drivers who caused an accident in which someone was interested. (53 percent of the 38 test cases)
•   Moderate-income good drivers often pay more than upper-income drivers with multiple points on their record. (In more than 50 percent of the 36 cases)

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