Can an Insurer Cancel Your Policy after a DUI Conviction?

When your car insurance company finds out you have received a DUI conviction, one of three unpleasant consequences will occur: a spike in premiums, policy non-renewal, or policy cancellation. Drivers convicted of a DWI or DUI frequently ask if their insurance company has the right to cancel coverage following a conviction. Insurers do in fact have this right, provided they follow the cancellation guidelines set by your state.

Legal Cancellation Process

The laws of your state will stipulate how an auto insurer must proceed with a policy cancellation after a DUI conviction for it to be valid. These laws can vary significantly from state to state. For example, in Nebraska, auto insurers can cancel a policy at any time as long as they send a written cancellation notice to the policyholder at least ten days before the effective date of the coverage cancellation. As long as your insurer complies with your state’s parameters for cancellation, they have the right to terminate your coverage once you receive a DUI.

Discovering the Offense

Insurers typically only check your driving record when your policy comes up for renewal, so there is a slight chance your company may not find out about the DUI conviction for several months or even years in some cases. However, most states require drivers who receive a DUI conviction to request an SR-22 form from their auto insurer to prove they carry adequate liability insurance. If you have to obtain such a form to lift your license suspension, your insurer will obviously find out about the offense almost immediately and will act accordingly.

Likelihood of Cancellation

If you were in a preferred rate class with your auto insurance company and receive a DUI conviction, your policy is much more likely to be canceled or non-renewed. In that case, you would have a cessation in auto insurance coverage until you found another insurer that will write you a policy with a DUI conviction on your record. The gap in coverage will lead to higher rates and fewer options, as will the DUI offense.