Unfortunately, as part of her recent fall from grace, Lindsay Lohan serves as an excellent example on how risky behavior can affect a person’s auto insurance rates.
The Insurance Information Network of California ran a few numbers:
A single, 24-year old female who lives in West Hollywood and drives a Mercedes SL550 (just like Lindsay) with a clean driving record (unlike Lindsay), would have access to every car insurance provider in California, and pay approximately $2,075 on car insurance every six months.
Now, if you add 2 DUI’s and an at-fault accident, things change drastically: Only 10% of California car insurance carriers even accept drivers with that much activity. And the few who do, make them pay. A lot. Car insurance rates would more than triple, up to about $7,400 every six months. That’s almost $15,000 per year, just for car insurance!
Lindsay Lohan may be able to afford these kinds of payments. The rest of us, probably not so much.
In addition, there’s your driving record. In Washington, a DUI will stay on your driving record forever, and will affect your insurance rates for years to come.
The moral of the story: Insurance is to a large degree based on a person’s risk profile. You can control your own risk profile (and the money you pay) by adopting a defensive driving style and by making smart decisions.
(PS: If you already do that, get a quote from our preferred car insurance providers – just click here.)