Colorado DUI Insurance FAQ’s

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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