Do auto insurance companies take into account offenses like Minor in Possession when setting rates?
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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|
|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! Remember, when your rates do go up, it's a good idea to compare car insurance quotes to ensure you are getting the best deal.
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.