DUI and DWI are serious traffic violations that can be a bit confusing to understand for the beginners. Both these concepts must be understood well because they can to affect your car insurance premiums negatively. DUI stands for Driving Under the Influence of alcohol, illegal substances or some medically prescribed drugs. On the other hand, DWI means Driving While Intoxicated or Impaired.
Car insurance companies in the UAE evaluate insurance premiums based on your driving records. So if you violate traffic rules or meet with an accident, it will impact your car insurance premiums.
Based on a recent survey, being convicted of DUI or DWI can increase your insurance premiums from AED 1,500 to AED 2,000 per year. In addition, such felonies can put your life in danger along with attracting many legal and financial consequences.
There are different types of penalties that are imposed on the drivers convicted of DUI and DWI. The first, and the most common one being their driving license getting temporarily revoked or suspended. Some drivers, may also need to go through an approved safe driving training.
How DUI or DWI Affects Car Insurance Coverage and Rates?
If you get your driving license revoked, your insurer may drop and/or not renew your insurance policy for the next year. You may also face challenges in getting new insurance coverage for your vehicle. Based on the nature of the incident, the DUI or DWI conviction can impact your driving record for good ten years. In few cases, they stay on your driving record for your whole life.
- You May Get Dropped: If you have been convicted, your car insurance company may decide not to keep you as a customer at all. They may drop your current insurance policy or not let you renew the existing one. In such cases, you may need to find another car insurance company that provides you coverage even when you have a DUI stamp on your records. The new car insurance company can offer you a new plat complying with higher DUI insurance rates.
- You May Pay Higher Insurance Prices: You may need to pay higher insurance prices for several years if you have a DUI on your driving record. The increased insurance rates may vary for different insurance providers in the UAE. Mostly, the DUI impact drops off from the record after five years, until then, the premiums remain high. The insurance rates can be lowered only by practicing safe driving consistently.
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Factors Influencing Insurance Rates after DUI or DWI
Here is a list of factors that are influenced after getting a DUI or DWI stamp.
- Assessment: The way your car insurance company assesses the risk for the drivers that get convicted in such an offence is one of the factors that affect your insurance rates.
- Type of Offense: The insurance companies in the UAE also check the type of offence you have made. The amount of risk in providing you an insurance policy is evaluated accordingly.
- Number of Offenses: The number of DUI and DWI offences that you have marked on your driving record and the time that has been passed after you have committed the last offence also impact your insurance rates.
- Age: The age at which you have committed the offence also impacts the insurance rates.
- Driving Record: Your driving behaviour on the road and your overall driving history, including the number of speeding tickets you have or the number of accidents you have caused, can also be the reason for you to pay higher car insurance prices.
If you plan to buy a new insurance policy after getting DUI marked on your driving record, you must meet the eligibility criteria for selective DUI insurance coverage. In the UAE, this means you get minimum liability coverage, which includes-
- Property damage liability
- Bodily injury liability per person
- Bodily injury liability per accident
You can cover for third-party damage with property damage liability if you are responsible for the same. With bodily injury liability, you can pay for the medical bills for people who got injured in a third-party vehicle that met with an accident.
You can also consider buying a comprehensive insurance plan that allows you to pay for your own loss and damage while paying for the third-party vehicle. Moreover, you can also add other insurance covers such as personal injury protection cover based on your preferences and the increased insurance rates.
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Tips for Getting Insurance After Getting DUI Marked
- Compare Insurance Rates: You can compare insurance rates from different insurance companies and look for the best insurance plan based on your financial preferences. Your current insurer may be the best choice, so make sure that you start looking for the insurance plan a month before the policy renewal date.
- Check for Discounts: You can also ask your insurer for discounts if you have an overall positive driving history. Most insurance companies offer one-time discounts for new policyholders. Make sure you check for the same with your car insurance company representative.
- Opt for Higher Deductible: This is another popular way of reducing the DUI insurance premium amount. You can opt for higher deductibles, and this way, you can lower your insurance premium. However, you may need to pay a part of your bills while reporting an insurance claim with this condition.
Now that you know how DUI insurance works in the UAE, you can find insurance companies that specialize in high-risk drivers. Such insurance coverage will help you deal with issues caused due to DUI. Some car insurance companies in the UAE offer reasonable DUI insurance rates. You can contact our financial experts anytime to find one for yourself.