If my daughter gets caught with dui, how will it affect my insurance rate.

My wife and myself are in argument about this issue. I believe that if someone is caught driving my vehicle under the influence, that I may be liable as well.

Asked on May 27, 2009 under Criminal Law, Michigan

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

 

If you or a driver listed as an "additional insured" (and I'm assuming that's the case here with your daughter), are convicted of a DUI your rates can go up.  Auto insurance companies may check your motor vehicle record only once every three years or when you're applying for a new policy.  In theory it's possible that accidents, tickets and DUIs may never make their way to your official motor vehicle record. 

However  most states, including Michigan, require DUI offenders to get a form called an SR-22 from their auto insurers, so you can't hide.  This form proves to the DMV that as a high risk driver you carry liability insurance and removes your license suspension.  An SR-22 also requires your insurance company to notify the DMV if it cancels your auto insurance for any reason.  You'll likely have to file proof of insurance for three — sometimes five — years with your state's DMV.

Not all auto insurance companies can offer SR-22 policies, so your auto insurance policy may be non-renewed or cancelled because the company can no longer provide auto insurance for you.  Then you'll be forced to look for new car insurance.  It will not be with one of the preferred carriers, like AAA, Allstate or Geico, but some other well-known companies (such as State Farm and Progressive Insurance) as well as other smaller companies will cover you and file the SR-22 for you so your license may be reinstated.  Remember, however, your rates will most certainly be higher with the double-whammy of a DUI and a cancellation on your record.

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