A DWI (Driving While Intoxicated) conviction in New Jersey carries severe legal consequences, but the effects don’t stop there. One of the most significant and lasting impacts is how it affects your automobile insurance rates.
Understanding how a DWI conviction can change your relationship with insurance companies is essential for anyone facing these charges. Here’s a closer look at how insurance is impacted and what you can expect if you are convicted of a DWI in New Jersey.
Immediate Impact: Policy Cancellation
New Jersey law allows insurance companies to cancel liability coverage for anyone convicted of DWI. This means that once your conviction is on record, your insurance company has the right to terminate your policy, leaving you without coverage. This can happen swiftly after the court processes your conviction, creating an immediate need for alternative coverage.
It’s important to note that while your insurance company can cancel your policy, it doesn’t mean you won’t be able to get coverage. However, the coverage available to you will likely come with much higher costs and more limited options.
“Assigned Risk” Coverage
Once your insurance has been canceled due to a DWI conviction, finding new coverage will be more challenging and expensive. Most people in this situation end up in what is known as the “assigned risk” pool. This category is essentially for high-risk drivers, which includes individuals with DWI convictions. While you can still obtain insurance, the rates in the assigned risk category are significantly higher than what most drivers pay.
Insurance companies charge higher premiums for high-risk drivers to offset the increased likelihood of future claims. This is especially true for those convicted of DWI, as they are statistically more likely to be involved in accidents. Drivers with DWI convictions often see their premiums double or even triple compared to what they were paying before the conviction.
How Long Will These Higher Rates Last?
One piece of good news is that the financial pain of higher insurance rates due to a DWI conviction is not permanent. In New Jersey, insurance companies are only allowed to consider your driving record for the last five years. This means that while your insurance rates will be high for the next five years following a DWI conviction, they can return to normal afterward if you maintain a clean driving record.
However, it’s crucial to avoid any additional traffic violations during this five-year period. Another conviction—whether it’s another DWI or a different serious offense—could reset the clock and keep your rates elevated even longer.
The Importance of a Clean Record Post-DWI
If you’ve been convicted of a DWI, maintaining a spotless driving record after the conviction is crucial for lowering your insurance rates in the future. Avoiding further violations and accidents will demonstrate to insurance companies that you are a responsible driver. Over time, as your record improves, you will gradually regain access to better insurance rates.
In some cases, drivers convicted of DWI may also consider taking defensive driving courses or alcohol education programs. While these may not directly reduce insurance premiums, they could serve as evidence that you’re working to improve your driving behavior. Some insurance companies may offer discounts for completing these courses, which can help offset the higher premiums.
Can You Fight a DWI to Avoid These Consequences?
Because of the long-term financial impact a DWI conviction can have on your insurance rates, it is always advisable to seek legal representation if you’re facing DWI charges. An experienced DWI attorney can review the details of your arrest and challenge the evidence against you. If the attorney can successfully argue that the traffic stop was improper or that testing procedures were flawed, the charges against you could be reduced or dismissed altogether. This can not only spare you from fines and license suspension but also prevent the steep increase in insurance rates that follows a conviction.
Reisig Criminal Defense & DWI Law: Your Trusted Defense Against DWI Convictions
Reisig Criminal Defense & DWI Law has been defending clients against DWI charges in New Jersey for years. With a deep understanding of state DWI laws, they have a proven track record of successfully helping clients avoid the harshest consequences of a conviction, including the financial burden of skyrocketing insurance premiums. Their team will carefully examine every aspect of your case, from the traffic stop to the accuracy of breathalyzer results, to ensure that your rights are protected.
Reisig Criminal Defense & DWI Law knows the long-term damage a DWI conviction can cause, not only in legal penalties but also in the form of increased insurance rates. That’s why their dedicated team works tirelessly to get charges reduced or dismissed whenever possible. If you’ve been arrested for DWI in New Jersey, you need a lawyer who will fight for you. Call Reisig Criminal Defense & DWI Law at (732) 625-9660 for a free consultation and take the first step toward protecting your future.
Conclusion: Don’t Let a DWI Conviction Destroy Your Finances
A DWI conviction in New Jersey doesn’t just mean fines, license suspension, or jail time—it also means a long-term financial impact on your car insurance. Most drivers will see their policies canceled and will have to secure high-risk, high-cost insurance. However, by avoiding further violations and working with a qualified attorney, you can limit the damage to your driving record and eventually return to lower rates.
If you’re facing a DWI charge, contacting Reisig Criminal Defense & DWI Law as soon as possible can help protect your rights and your financial future.
More Information About NJ DWI Penalties
- Will You Go To Jail After Your 1st DWI
- What Are The Penalties for a 2nd DWI in NJ
- Will I Get A DWI If I Am In A Parked Car?
- Can You Get Temporary Driving Privileges After A DWI In NJ?
- What Are The Fines If You Just Please Guilty To DWI in NJ?
- Can I Get Community Service For A DWI Instead of Fines?
- Will I Have To Get An Interlock Device For A DWI In NJ?
- Can I Get A Hardship License After A DWI In NJ?
- What Is The Difference Between A DWI And DWI In A School Zone
