Operating while intoxicated can have serious consequences, extending beyond legal penalties. When an OWI occurs, it typically leads to increased premiums and potential difficulties in obtaining auto insurance coverage.
Understanding these impacts is helpful for anyone facing or concerned about OWI charges.
Increased insurance premiums
Following an OWI conviction, insurance companies often categorize individuals as high-risk drivers. This categorization may lead to higher insurance premiums. Insurers view those with OWIs as more likely to get into future accidents, prompting them to adjust rates accordingly. These increased premiums can persist for several years, impacting financial stability.
SR-22 requirements
In many states, including Indiana, those convicted of OWI may have to file an SR-22 form with the Department of Motor Vehicles. This form is proof of financial responsibility, and high-risk drivers often have to have it. Obtaining an SR-22 can be challenging. It may also involve additional fees. Failure to maintain SR-22 coverage can result in license suspension or other penalties.
Policy cancellations
Some insurance companies may choose to cancel policies altogether following an OWI. This cancellation can leave people scrambling to find alternative coverage, often at higher rates. Also, when an insurer drops someone, it can make it harder to secure coverage elsewhere. This can compound the financial strain of an OWI.
Insure.com reports that the average Indiana driver with a first-time OWI sees insurance rates rise by an average of 37%. Seeking guidance from insurance professionals and exploring options for mitigating these impacts can help people navigate this challenging situation.
