While insurance companies don’t check your criminal history, some crimes, like DUIs, do show up on your driving record and can make your rates go up or down.
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A driving-related felony, however, is a different story. Anything on your MVR (motor vehicle record) can change your car insurance rates or even make it impossible to get cheap car insurance.
Having a criminal record can make many things more difficult, and obtaining affordable car insurance is unfortunately one of them. Insurance companies see drivers with felonies as being higher-risk, which often leads to increased auto insurance premiums Keep reading to learn more about how a felony conviction can impact your car insurance rates, options for finding coverage, and steps you can take to potentially lower your costs.
Why Do Felonies Increase Insurance Rates?
Auto insurance companies use many factors to calculate premiums for each driver. Statistics show drivers with felonies are more likely to file claims compared to drivers with clean records. As a result, insurance carriers view these motorists as more of a risk and will charge higher rates.
Some specific reasons a felony conviction can increase car insurance prices include
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Higher risk of accidents – Data shows drivers with felonies tend to get in more accidents on average. Even if the crime was not driving-related, insurers may believe these motorists engage in riskier behaviors.
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Possibility of repeat offenses – Someone with a criminal history may be more prone to traffic violations and other acts that would require a claim. Insurers try to protect themselves from recurring high-risk scenarios.
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Increased claim payouts – A major claim involving bodily injury, property damage, or lawsuits can be much more expensive. Insurers know paying these types of claims is more likely with high-risk drivers.
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Fraud concerns – Unfortunately drivers with felonies may be more inclined to defraud insurance companies by filing false or exaggerated claims. Identifying and refusing false claims costs insurers a lot of money.
How Much Does a Felony Increase Car Insurance?
On average, having a felony conviction on your record can increase your car insurance rates anywhere from 20% to 200%, though increases closer to 75% are more common. However, the exact rate hike you see depends on factors like:
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Type and severity of felony – Violent crimes may have a greater impact than non-violent felonies like fraud or drug possession. Also, felonies are seen as more serious than misdemeanors.
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Time elapsed – The longer ago the offense occurred, the less it may impact premiums, as insurers focus more on recent behaviors.
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Driving history – A clean driving record otherwise can help offset some increased risk from a prior felony. Multiple moving violations will compound rate hikes.
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Insurer policies – Some companies penalize criminal records more harshly than others when setting rates. Comparison shopping is important.
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State regulations – Laws regarding using criminal records in underwriting vary. In some states, old felonies cannot be factored in after a certain time period.
While a 75% premium increase may be typical, a felony for a serious violent crime committed recently could potentially double or triple your rates with some insurers. On the other hand, an older, non-violent felony may only generate a 30% hike. Shop around and compare quotes carefully.
Finding Auto Insurance After a Felony Conviction
It can be frustrating trying to find affordable coverage after you already have high-risk marks against you. However, you still have options:
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Check with your current insurer – If you have a good prior driving record plus a long history with your insurance company, you may be able to negotiate a smaller increase. Ask about policy discounts you can qualify for to offset the rate hike.
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Compare quotes from standard carriers – Get rate estimates from large national insurance companies before assuming you will be excluded. Consider bundling home and auto policies together for possible discounts.
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Look into state high-risk plans – If you are rejected or quoted very high premiums by most standard companies, your state likely offers an insurance plan or shared risk pool for high-risk drivers at lower rates.
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Seek out non-standard insurers – Companies like Direct Auto, The General, or Acceptance Insurance specialize in covering higher-risk applicants. However, their rates are still often higher than standard carriers.
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Request a family member’s policy – Adding you as a driver to a parent’s or spouse’s policy can potentially insure you at a more affordable cost, if they have a good driving record and insurance score.
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Consider reducing your coverage – Opting for just basic liability limits rather than comprehensive and collision coverage can lower premium costs. But it leaves you unprotected for damage to your own car.
How to Reduce Car Insurance Costs After a Felony
Here are some steps you can take to help minimize auto insurance rate hikes after a felony conviction and keep costs as low as possible:
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Improve your driving record – Go at least three years with a clean record, no accidents or tickets. Taking a defensive driving course can also yield discounts.
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Raise your credit score – Many insurers use credit-based insurance scores in underwriting. Boosting your score can potentially lower your premiums.
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Enroll in an insurance tracking program – Using a device or app to monitor driving habits may make you eligible for significant discounts for safe driving.
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Increase policy deductibles – This lowers the insurer’s financial exposure for paying claims, so they’ll decrease your rates in return. Just be prepared to pay more out-of-pocket for a claim.
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Drop unnecessary coverage – Analyze your current policy limits and remove any extras you don’t really need. However, avoid reducing critical coverage like liability or uninsured motorist protection.
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Maintain continuous insurance – Letting your policy lapse can make insurers view you as even higher risk. Keep coverage even with minimum limits.
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Comparison shop – Get at least three quotes any time your policy is up for renewal, as rates can vary significantly between insurers. Report any changes that improve your risk profile.
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Ask about discounts – Take advantage of any discounts you qualify for based on occupation, vehicle safety features, age, marital status, and more. Even small discounts add up.
Having a criminal history makes getting affordable car insurance coverage more of a challenge. But being a smart, defensive driver, improving your record over time, and shopping around for the best rate can help minimize the insurance rate penalty for a prior felony. Maintaining at least basic required coverage remains crucial, or you risk fines or suspended registration. Discuss options truthfully with insurance agents to find the best solution for your situation.
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Driving-related felonies that can affect car insurance
When you go to get insurance, having a number of driving-related felonies may affect your rates. These include
- Vehicular homicide/manslaughter
- A second or third DUI/DWI (in most states)
- Hit-and-run
- Insurance fraud
Because each state has its own laws, some crimes may not be felonies in another state but are in another. For instance, in Maryland, any DUI is a misdemeanor, no matter how many you get. But in Louisiana, a third or more DUI is a felony. [ 1 ].
Does a misdemeanor affect your car insurance?
It can, depending on the misdemeanor. You will have some misdemeanors on both your driving record and your criminal record. Examples are getting your first DUI or driving without insurance. Both of those would cause your car insurance rates to go up because they are misdemeanors that make you more likely to get into an accident.
But other misdemeanors don’t matter to your insurance company at all. In this case, your insurance company doesn’t know (or care) if you were caught with a controlled substance or spray painting graffiti on someone else’s property.
Your insurance company doesn’t care about your misdemeanor as long as it doesn’t make you more likely to file a claim.
Auto Insurance Fraud Charge Ain’t No Joke!
FAQ
Does being a felon affect your credit?
Why are felons denied life insurance?
Can you get an insurance license with a felony in Illinois?
Is it a felony to not have car insurance in Florida?
Does a felony affect car insurance rates?
A felony conviction may even affect a person’s car insurance rate. The precise effects will depend on the type of crime they were convicted for, along with some other factors. But for the most part, people who have a criminal record end up paying higher insurance rates than those who don’t.
Can I get car insurance if I’m convicted of a felony?
The answer depends on the circumstances surrounding your conviction — namely, the type of felony of which you were found guilty. If you were convicted of vehicular manslaughter or felony DUI, you might have difficulty finding car insurance. If you were convicted of something completely unrelated to driving, you might still be penalized indirectly.
Can a conviction affect auto insurance?
For instance, if the conviction had nothing to do with driving or insurance, the insurer could overlook it. However, convictions related to traffic offenses or financial crimes such as fraud can significantly affect your ability to access auto insurance. Insurers have the right to decline to offer coverage.
Do insurance companies check felony convictions?
Every insurance company will check a person’s driving record, but not all of them will check your criminal record. So if a felony conviction has nothing to do with operating a vehicle then the insurer will not know about it unless they check the person’s criminal record as well.