The two distinguishing features of FR44 auto insurance are its higher liability limits and its exclusivity for DWI/DUI drivers. Currently, only Florida and Virginia are using this format in their latest efforts to curb drink-driving. It’s a program that enjoys broad support there and will likely be adopted by other states. When it comes to insurance, other states don’t make a distinction between high-risk groups of drivers, requiring SR22 auto insurance for all of them.
Texas leads the nation in drunk driving accidents and deaths. Texas police have an equally impressive record of DWI arrests and issued citations. However, getting pulled over is quite common everywhere, as many states and municipalities are aggressively looking for those who drink and drive. Issuing citations and prosecuting these drivers has become big business for municipalities, attorneys, insurance companies, and others. However, the app is widely supported as roads inevitably become safer due to this activity. Many states may soon consider requiring higher liability limits for their DWI/DUI drivers, just as Florida and Virginia have done through FR44 insurance.
A driver convicted of DUI in Florida must obtain an auto insurance policy with 100/300/50 liability limits and provide proof through the submission of the FR44 certificate. Previously, the Florida DUI driver only had to carry 10/20/10 limits as evidenced by their SR22 insurance filing. In Virginia, the FR44 liability limits of 50/100/40 for your DUI drivers are doubly required by the SR22 policy.
For several key reasons, the FR44 auto insurance policy has been a great development in Florida and Virginia. First, increased liability limits are a great benefit to the entire community, since more insurance coverage means more protection for the injured party. Second, the higher initial insurance premiums experienced by drivers convicted of the increased limits becomes a deterrent to recidivism. And, increased premiums along with other consequences suffered by drunk drivers often have a general modifying effect on their driving habits. These drivers tend to be more careful and actually have fewer accidents and claims, as evidenced by their low accident rates.
When our homeowners insurance agency began writing more DUI policies, we were concerned that our insurance companies would find this objectionable. We were very pleased to learn that a number of the companies were having good performance numbers with this risk class and were encouraging more policies. As time goes on, these companies are increasingly competing for lower rate DWI/DUI policies. There are still many companies that penalize these drivers with high fees and cancellations, so shopping around after a citation is important and may be necessary. Car insurance is usually the last step before convicted drivers can get their license reinstated, and often the most feared. Fortunately for them, auto insurance usually doesn’t turn out to be the worst of its consequences.
Florida and Virginia DUI policyholders, upon subsequent renewals, begin to enjoy increasing discounts associated with high liability limits. And good performance in this risk group from safer driving habits translates into better insurance rates. In the long run, these drivers can actually lower their premiums while enjoying higher coverage limits. And this is especially so as the DUI conviction begins to age, and its associated surcharge decreases, eventually being eliminated entirely. Many drivers without a DUI conviction do not have the foresight or discipline to maintain high liability limits, resulting in discounts that lower overall premiums.
It’s easy to see that the FR44 insurance policy is a win-win scenario for everyone involved. The community at large enjoys a higher level of insurance protection for its citizens, DWI or DUI policyholders ultimately pay less for more coverage, and insurance companies, attorneys, ticket clinics, etc. they make profit. And, overtime, a DWI/DUI driver’s safer driving habits translate into better insurance rates, too. It seems to me that all states will benefit from the sensible FR44 insurance programs that I have experienced as an independent agent in Florida and Virginia.
