Will a Mip Violation Affect Car Insurance Rates?

Do auto insurance companies take into account offenses like Minor in Possession when setting rates?

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Car insurance after a MIP

A MIP — or Minor in Possession — occurs when an individual under the age of 21 is found in possession of alcohol. Although this infraction is taken seriously and charged as a misdemeanor in most states, a MIP usually does not affect car insurance premiums. Because a Minor in Possession violation is not specifically related to driving, auto insurance companies don't consider it a black mark on one's driving record. However, a MIP can come with complicated consequences, including driver's license suspension or a ticket that could affect your insurance rate. Let’s explore the best steps to take to ensure your car insurance after a MIP stays affordable.

Does a MIP affect insurance rates?
  1. When can a MIP affect your car insurance premium?
  2. Underage drinking and car insurance
  3. Additional resources

When can a MIP affect car insurance premiums?

A MIP usually doesn’t affect car insurance costs, because it is not considered a driving offense. However, it's important to be aware of the indirect consequences of a MIP. Chief among these concerns is the suspended driver's license that can come as a result of a Minor in Possession.

Your license can be suspended after a MIP if you fail to appear in court or neglect mandated community service or fines. A suspended driver's license will have major implications on your insurance premiums. To avoid any rate changes, ensure you complete any court-ordered requirements as promptly as possible.

Underage drinking and car insurance rates

Drinking and driving laws — and the corresponding consequences — are more harsh when the driver ticketed is younger than 21. While penalties may vary by state, it is usually illegal for a minor to drive with any detectable amount of alcohol in his or her system.

If a young driver is caught with a BAC level exceeding 0.00, they’ll be ticketed for a DUI or DWI. For a teenager, a violation of this severity can double car insurance premiums.

On average in 2017, a DUI/DWI raised car insurance rates by 77%. The financial impact of the violation can linger for three to five years in most states, while in California, a DUI/DWI will increase your car insurance rate for 10 years. Below are estimated car insurance rates after a DUI charge.

Violation + YearAverage Annual Premium
First Year with DUI$2,520
Second Year with DUI$3,278
Third Year with DUI$4,371
10th Year with DUI$12,020

Additional resources

Car insurance rates shouldn’t change after a MIP unless requirements specifically related to the charge are neglected and your license is suspended. If you responsibly complete your obligations in the wake of a MIP, your car insurance costs might not go up!

For more information related to car insurance quotes and car insurance for drivers under 21, see our additional resources.

  1. What goes into your car insurance quote
  2. Car insurance policies for teenagers
  3. Car insurance coverage for a 20-year-old
  4. Car insurance quotes for high-risk drivers

Find the right car insurance for you today!

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Ava Lynch
Ava Lynch LinkedIn

Ava worked in the insurance industry as an agent for four-plus years. Currently providing insights and analysis as one of The Zebra’s resident property insurance experts, Ava has been featured in publications such as U.S. News & World Report, GasBuddy, and Yahoo! Finance.