Challenges of obtaining auto insurance after an OWI conviction

On Behalf of | Oct 17, 2023 | Owi

When a college student faces a conviction for operating a vehicle while intoxicated, the consequences can be significant, affecting various aspects of their life.

One of the challenging aftermaths of an OWI conviction is obtaining auto insurance. It can become arduous and expensive.

Increased premiums

One of the immediate consequences is the spike in auto insurance premiums. Insurance companies view individuals with OWI convictions as high-risk drivers, which leads to significantly higher rates.

College students, who often have limited financial resources, can find this sudden increase in premiums overwhelming. The increased costs can strain their already tight budgets, making it even more challenging to manage their finances.

SR-22 requirement

In Wisconsin, individuals with an OWI conviction typically must file an SR-22 certificate with the state’s Department of Transportation. An SR-22 is a document that proves you have the minimum required insurance coverage.

Its purpose is to ensure that high-risk drivers have insurance coverage, but it adds another layer of complexity and cost to obtaining auto insurance. College students may find it difficult to meet the financial obligations associated with an SR-22 filing.

Limited insurance options

Many mainstream insurance companies may refuse to offer coverage after an OWI conviction, leaving individuals with limited options. These options often come with higher premiums, further increasing the financial strain on college students.

Lengthy period of high premiums

In 2022, nearly 23,000 OWI convictions occurred in Wisconsin. An OWI conviction remains on your driving record for several years. During this time, you will continue to face high insurance premiums. This can translate into several years of financial hardship.

Potential for coverage denial

While some insurance companies may offer coverage to individuals with OWI convictions, they may impose strict conditions and limitations. For example, you might not receive coverage for certain types of accidents or damages. College students should carefully consider the terms and conditions of their insurance policy to avoid further financial stress in case of an accident.

Understanding these challenges and taking appropriate steps to mitigate their financial impact is important for students facing an OWI conviction.

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