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New Mexico DUI auto insurance
Reader’s Question:
My sister has a potential DUI conviction here in New Mexico. We already have an idea about the possible penalties that will be imposed on her. What we don’t really know yet is the impact of this on her insurance. What will be the possible effects of DUI on her auto insurance?
Maddie
Albuquerque, NM
In New Mexico and all the other states, car insurance premiums are already significant. But, if your sister would be convicted of DUI, her premiums can skyrocket.
It is a foregone conclusion that your sister’s premiums would increase once she has been convicted of a DUI. When a driver has been convicted of DUI, the car insurance company that carries the policy on that person will consider him/her a high-risk driver. From the perspective of car insurance company, an individual who drives under the influence exposes the company to a significant level of financial risk. This increased level of risk is because of the potential liability from property damage and human casualties that a DUI implies may happen in the future.
If she will be convicted of a DUI, her insurance carrier may cancel her policy. A DUI implies significantly greater financial exposure for a car insurance company to underwrite her policy. If the insurance company considers her too great a risk as a driver for them to continue carrying her policy, they may simply cancel it mid-term. This could often happen when a driver has received the conviction after having a clean driving history with “preferred driver” status. The insurance company can sometimes allow her contract to expire at the end of its term and refuse to renew her policy.
The effects of a DUI on your sister’s insurance can be hard to manage. At the very least, she will almost certainly have to pay much higher premiums on her existing car insurance policy. However, if her insurance carrier cancels or refuses to renew her policy, she will be forced to find another carrier who is willing to underwrite a policy given her “red flag” status.
The key is to plan ahead once arrested for a DUI. Then, consult a legal expert regarding how best to approach your car insurance problems before a DUI conviction follows.