The effect a license suspension has on auto insurance

Reckless driving can result in a suspended license.In Wisconsin during 2009, more than 10 percent of drivers had a suspended or revoked license, according to ABC affiliate WISN.

There are a number of reasons drivers may have their license suspended, and how their insurance rate changes depends on what that is.

Some of the most common reasons for drivers to have their license suspended are DUI, cancelled auto insurance, and reckless driving. Other lesser-known reasons are failure to pay child support, fraud, and eluding a police officer, according to the Washington State Department of Licensing.

Jim Gramling of the Center for Driver’s License Recovery and Employability believes economic status contributes to whether someone gets their license suspended. "People get revoked for a lot of different reasons, and a lot of those reasons are related to poverty and to low-income status," Gramling said.

In order for a driver to maintain the cheapest auto insurance, they should avoid having their license suspended at all. If a license is suspended, the insurance rate may or may not change. A DUI conviction is a sure-fire way for a person to have their car insurance rates increase dramatically. However, something like a lapse in vehicle coverage may only cause a small inflation in premiums.ADNFCR-3298-ID-19754879-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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