Data Show Auto Insurance Rates Rise For DWI Convictions
September 04 2009 - 2:33PM
Dow Jones News
Drivers who have a few too many drinks at the Labor Day picnic
might save thousands of dollars if they take a cab home.
According to data collected by Insurance.com, auto insurance
rates in general have been rising, but rates for male drivers with
a conviction for driving while under the influence or while
intoxicated, called a DUI or DWI, are rising faster. DWI rates
generally stay in effect for five years after a conviction.
"It more than pays for a cab ride home if you have had too much
to drink," said Sam Belden, vice president of the insurance rate
shopping Web site. "It has always been more expensive if you have a
DUI than if you don't, and now it is even more acute."
Auto insurers have pointed to rising costs for auto accidents as
a factor they are pricing into auto insurance. In its second
quarter investors call, Progressive Corp. (PGR) Chief Executive
Glenn M. Renwick said that the company has seen increases in both
the frequency and severity of auto accidents, and the competitive
market is starting to price in the changes.
All drivers have seen increases in the past year, according to
Insurance.com data, but the increase is a bit more for drivers with
a DWI conviction, especially if it occurred in conjunction with an
accident.
In 2009, male drivers with a DWI conviction paid about 24% more
per year for auto insurance than did males without violations, up
from a 22% differential last year. The rate of increase for a DWI
conviction has held steady for women since last year, at 28% higher
than the rate for those without any violations.
The national average annual insurance rate for male drivers with
a DWI conviction is $2,113, $408 more than a male driver with no
violations would pay, according to Insurance.com's data. Women with
a DWI pay a $2,199 annual auto insurance bill, on average, or $478
more than if they don't have violations. Add an additional $214 to
the annual bill for men if that DWI conviction involved an
accident, and about $185 more for women with a DWI conviction with
an accident.
The most expensive state for DWI convictions for men is Rhode
Island, where a DWI conviction means an average auto insurance bill
of $3,485. The most expensive state for women is New Jersey with an
average auto insurance bill of $3,184 for female drivers with a DWI
conviction.
-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750 4141;
lavonne.kuykendall@dowjones.com