Do auto insurance companies take into account offenses like Minor in Possession when setting rates?
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.
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.
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 + Year | Average Annual Premium |
|---|---|
| None | $1,427 |
| First Year with DUI | $2,520 |
| Second Year with DUI | $3,278 |
| Third Year with DUI | $4,371 |
| 10th Year with DUI | $12,020 |
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.
