Can A DUI Impact Your Home Insurance Rates?
It may be obvious that a DUI conviction will cause your car insurance premiums to go up, or even cause you to lose your coverage completely. What you may not be aware of is that a DUI may even impact how much you pay for homeowner's insurance. Here are a few of things that you should know to help you be prepared.
Your Credit Score Decreases
The biggest way your DUI can affect insurance premiums is your personal credit score. It is really because of a domino effect that happens due to the DUI. You most likely would have fees to pay to your lawyer, court costs, as well as any fines that have been given to you. If you had to serve time in jail, you will lose income because of not being able to work, and potentially lose your job. With about 3 out of 4 people living between paychecks, chances are that the consequences of a DUI could cause your credit score to tank.
Once debts start showing up in your personal credit score, insurance providers can change how much they charge you for insurance. If you have poor personal credit, it could end up causing you to pay as much as 91% more when it comes to your premiums.
Your Policy Is Canceled
In addition, it's possible that your insurance company can decide to not renew your policy if you have a felony conviction. States like Michigan have laws that allow insurance companies to do this. While it's typical to not have your homeowner's insurance policy canceled immediately, you might not be able to renew it when the time comes.
You Are Viewed As A High Risk
If your DUI conviction occurred because you caused an accident, there will be claims filed with your insurance company to pay for the damage. If you have auto and homeowner's insurance with the same company, they will immediately know about the claims that are being filed. It can cause a rate increase at renewal time.
Insurance companies will always view someone that makes claims as a higher risk, and the nature of your DUI can impact home insurance premiums because of this--especially if you were engaged in an activity that could potentially put your home more at risk. For instance, if you were convicted for driving while using illegal drugs, the assumption may be made that you are using drugs while in your home as well.
If you are worried about how a DUI conviction can impact your premiums with other insurance policies, speak with a professional agent, such as those found at Willie Swims Ins Agency, Inc.