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Understanding the Insurance Impact of an OWI in Indiana
In Indiana, being convicted of an OWI—Operating While Intoxicated—can trigger a range of immediate legal penalties. But what many drivers don’t realize is that the financial consequences continue long after court proceedings are over. One of the most significant ongoing effects is how an OWI impacts your auto insurance.
An OWI conviction dramatically alters how insurance companies view you as a driver. Providers consider individuals with an OWI on their record to be high-risk, and that changes everything from your premium rates to policy availability. The impact is often long-term, and for some drivers, the increased costs can be even more damaging than the court fines.
This post explains exactly how auto insurance companies in Indiana respond to OWI convictions, how long those effects last, and what steps you can take to manage costs. Whether you’re currently dealing with an OWI or trying to plan ahead, this guide will help you understand the insurance implications clearly and without legal jargon.
Why Insurance Companies Treat OWIs as High-Risk Indicators
Auto insurance is based on risk. Providers assess your likelihood of filing a claim—and price your policy accordingly. In the eyes of insurance companies, an OWI conviction is a strong indicator of risky behavior behind the wheel.
In Indiana, when you are convicted of OWI, it becomes part of your driving record, which insurers access when setting or renewing your policy. Even a first-time offense raises a red flag.
Here’s why OWIs impact your insurance:
- Increased accident risk: Insurers associate impaired driving with higher rates of collisions and claims.
- State reporting: The Indiana Bureau of Motor Vehicles (BMV) documents OWI convictions and license actions, which are visible to insurers.
- SR-22 requirement: In many cases, drivers convicted of OWI must file an SR-22 certificate, further signaling high risk.
These factors combined often result in immediate premium increases and more limited coverage options.
How Much Do Insurance Rates Go Up After an OWI in Indiana?
In Indiana, drivers convicted of OWI can expect to see their auto insurance premiums increase significantly, often doubling or tripling depending on the insurer and the circumstances of the conviction.
While exact rate increases vary based on your age, driving history, location, and insurance provider, general estimates include:
- First-time OWI: 50% to 100% rate increase
- Repeat OWI offenses: 100%+ rate increase or denial of standard policies
- SR-22 requirement: Additional administrative fees and limited provider options
For example, if you were paying $100 per month before the conviction, your premium could rise to $150–$300 per month or more. This increase may last for three to five years, depending on how long the conviction remains on your driving record and how your insurance company handles high-risk drivers.
It’s not just the rate that changes. You may also lose access to certain coverage types, discounts, or policy bundles after an OWI.
What Is an SR-22 and Why Is It Required After an OWI?
After an OWI conviction in Indiana, the court or BMV may require you to file an SR-22—a certificate of financial responsibility that proves you carry the state’s minimum required insurance coverage.
Key facts about SR-22s in Indiana:
- It’s not insurance itself—it’s a document your insurance provider files with the state.
- Required for drivers with OWI convictions or license suspensions.
- Must be maintained for a minimum of three years, depending on your case.
- Failure to maintain the SR-22 can result in license suspension.
Having to file an SR-22 automatically places you in a high-risk category, which often limits your choice of insurance companies. Some major insurers won’t issue SR-22 policies at all, requiring drivers to switch providers and pay higher rates.
How Long Does an OWI Affect Your Insurance Rates in Indiana?
In Indiana, the effect of an OWI on your insurance rates typically lasts at least three years, and sometimes longer. However, the OWI remains on your driving record with the BMV for up to 10 years, which means insurers may continue factoring it into your risk profile even after initial penalties subside.
Here’s how the timeline usually plays out:
- Year 1–3: Highest rate increase, SR-22 filing required
- Year 4–5: Some insurers begin to offer reduced rates if no further violations occur
- Year 6–10: OWI may still be considered, but with lesser impact depending on provider
- After Year 10: Some companies may stop factoring the OWI into rate decisions
However, there’s no universal rule. Some insurers look back farther than others, and risk assessment varies widely by company. The best way to reduce rates after an OWI is to maintain a clean driving record and consistently shop for better coverage.
Can You Still Get Car Insurance After an OWI?
Yes, but it may be more difficult and expensive. After an OWI, you may no longer qualify for standard auto insurance policies and may need to seek coverage from providers that specialize in non-standard or high-risk drivers.
What to expect:
- Fewer options: Not all companies offer policies to drivers with OWI convictions.
- Higher rates: As a high-risk driver, your premiums will be substantially higher.
- SR-22 requirement: Many providers will require you to purchase an SR-22-compliant policy.
- Upfront payment: You may be asked to pay a larger portion of your premium up front.
Some drivers find themselves dropped by their current insurer after an OWI. If that happens, you’ll need to shop for a new provider quickly to avoid lapses in coverage—which can further raise your rates.
Indiana requires all drivers to maintain liability insurance, so being without coverage is not an option, even after an OWI.
Will Expunging an OWI Reduce Insurance Costs?
No. In Indiana, expunging an OWI does not remove it from your driving record, which is what insurance companies use to assess risk. While expungement can seal your criminal record from most background checks, it does not affect what the BMV retains.
Insurers typically don’t use court records when setting premiums—they pull data from your official BMV driving history, which continues to show the OWI even after expungement.
So while expungement may help with employment or housing, it has no direct impact on auto insurance pricing or SR-22 requirements. You’ll still need to wait for the violation to age off your driving record for rates to improve.
Frequently Asked Questions About OWI and Auto Insurance in Indiana
How much will my insurance go up after an OWI in Indiana?
Premiums may increase by 50% to 100% or more, depending on your insurer and whether this is a first or repeat offense.
Do I have to tell my insurance company about an OWI?
Eventually, yes. They will find out through BMV records, especially when you need to file an SR-22 or renew your policy.
How long does an OWI stay on my driving record in Indiana?
Typically 10 years, though it may vary based on the severity and whether you have additional offenses.
What is an SR-22, and how long do I need it?
An SR-22 is a proof-of-insurance form filed by your insurer. You’ll likely need it for three years after an OWI conviction.
Can I switch insurance companies after an OWI?
Yes, but your options may be limited. You may need to work with insurers that offer non-standard policies for high-risk drivers.
Does expunging an OWI help with insurance?
No. Expungement affects your criminal record, not your BMV driving record, which is what insurers use to calculate rates.
Conclusion: What to Expect from Auto Insurance After an Indiana OWI
In Indiana, an OWI conviction significantly increases auto insurance premiums, often for several years. Beyond higher costs, drivers may face SR-22 filing requirements, fewer provider options, and tighter coverage terms. Because insurers rely on BMV driving records, not court files, even an expunged OWI continues to affect rates and coverage.
Despite these challenges, drivers can take steps to manage the financial burden—like maintaining a clean record, comparing insurance quotes, and meeting all SR-22 requirements. Over time, many see rates improve as the offense ages off their record.
To understand more about how OWIs impact your long-term record, visit DUI Records and Long Term Impact.
For a focused look at insurance implications, check out How a DUI Affects Auto Insurance Rates.