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What
is a SR22? Anyone Colorado resident who has had their
drivers' license revoked for driving under the influence in
Colorado is required by the Department of Revenue to obtain
"Proof of Insurance" prior to reinstatement of their
driving privilege. This form of insurance, known as a
"SR22," requires the insurance carrier to report any
lapse in insurance coverage to the Colorado Motor Vehicle Division.
The SR22 must be maintained for a period equal to the
duration of the revocation, e.g., three months for a first time
revocation.
Even
persons who had valid insurance at the time of their arrests must
obtain SR22 coverage. While nobody knows for sure why Colorado
imposes this requirement on drivers who have not broken the mandatory
insurance laws, you can bet that the insurance companies lobbied
heavily for this provision to assist them in detecting persons
convicted of DUI. So what happens after an insurance company
finds out about a drunk driving conviction? Read On!
"How
will a dui conviction effect my insurance?"
The answer to this question depends on which insurance company you
use. Secondly, how a DUI or DWAI effects your insurance
will depend on your driving record. Many insurance
companies are actually "insurance groups" which
are made up of several subsidiary companies. These subsidiary
companies may treat drivers with identical records completely
differently. Generally, a driver with even one dui or dwai
conviction can look for higher insurance rates or outright
cancellation of his or her policy. This is true especially
if the insurance company is one which offers lower rates for
drivers with clean records.
Insurance
companies can be divided into three types, conservative risk, moderate
risk and high risk insurers.
Conservative
Risk Companies
Without
naming names, conservative risk companies are those who accept only
drivers with clean or nearly clean records. Most conservative
insurers will refuse to insure a driver with a record of serious
traffic violations, particularly drunk driving
convictions. If a driver is insured by one of these
companies at the time they receive a dui, dwai or duid
conviction, the insurance company will probably terminate their
coverage.
Moderate
Risk Companies
A
moderate risk insurance company is one which accepts individuals with
a history of traffic violations, including drunk driving
convictions,
albeit at higher rates. These insurers concentrate on
doing a volume business and insure both drivers with
squeaky clean records and drivers with some black marks on their
records. A moderate risk company may be the best bet for
affordable insurance for the person with a single drunk driving
conviction.
High
Risk Companies
These
companies specialize in insuring drivers with bad records. They
will insure just about anyone - but charge their customers a kings
ransom. First time dui's with otherwise clean records, should
shop around if possible before insuring with a high risk insurer .
The difference in rates between a high risk insurer and moderate risk
insurer may be hundreds or even thousands of dollars.
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