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 drunk 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 distinguish between high-risk groups of drivers, requiring SR22 auto insurance for all of them.
Texas leads the nation in drunk driving crashes and fatalities. Texas police have an equally impressive record of DWI arrests and citations issued. However, it is quite common everywhere to be pulled over, as many states and municipalities are aggressively targeting 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 from 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 automobile insurance policy with liability limits of 100/300/50 and provide proof through the presentation of the FR44 certificate. Previously, the Florida DUI driver only had to carry limits on 10/20/10 as evidenced by their SR22 insurance filing. In Virginia, FR44 liability limits of 50/100/40 for their DUI drivers are doubly required by the SR22 policy.
For several key reasons, the FR44 auto insurance policy has been an excellent development in Florida and Virginia. First of all, increased liability limits are an excellent benefit for the entire community, as more insurance coverage means more protection for the injured party. Second, the higher initial insurance premiums experienced by drivers convicted of increased limits becomes a deterrent to recidivism. And, increased premiums along with other consequences suffered by drunk drivers often have an overall modifying effect on their driving habits. These drivers tend to be more careful and, in fact, have fewer accidents and claims, as evidenced by their lower 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 several of the companies were having good numbers performing with this class of risk and were encouraging more policies. As time goes on, these companies compete more and more for DWI/DUI policies with lower rates. There are still many companies that penalize these drivers with high fees and cancellations, so it is important and may be necessary to shop around after a citation. Car insurance is usually the last step before convicted drivers can reinstate their license, and it’s often the most feared. Luckily for them, because insurance is not usually the worst of its consequences.
DUI policyholders in Florida and Virginia, upon subsequent renewals, begin to enjoy increasing discounts associated with high liability limits. And good performance in this risk group stemming from safer driving habits translates into better insurance rates. In the long run, these drivers can actually lower their premiums while enjoying higher limits of coverage. And this is especially so as the DUI conviction begins to age, and its associated burden diminishes, eventually being eliminated altogether. Many drivers, without a DUI conviction, lack the foresight and discipline to maintain high liability limits, leading to discounts that lower overall premiums.
It is 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 eventually pay less for more coverage, and insurance companies, attorneys, ticket clinics, etc. they make a profit. And, over time, a DWI/DUI driver’s safer driving habits also translate into better insurance rates. It seems to me that every state will benefit from the sensible FR44 insurance programs that I have experienced as an independent agent in Florida and Virginia.
