Insurance Blog

Actress Lindsay Lohan's poor driving record will likely boost her annual car insurance premiums to $15,000. (Photo courtesy of The New York Daily News)

Ever wonder what Lindsay Lohan's wild ride will cost her on her auto insurance and life insurance policies?  The good folks at Insurance Journal sensed that inquiring minds would want to know, so they contacted the Insurance Information Network of California for answers.

The IINC crunched the numbers using Lindsay's Beverly Hills 90210 ZIP code, vehicle model (2009 Mercedes SL550 convertible) and driving record (two DUIs, one at-fault accident).

A 24-year-old female in Lohan's West Hollywood neighborhood with a clean driving record would have her pick of 100 percent of insurance companies in California and pay about $2,075 every six months for full auto insurance coverage.

Add two DUIs and an at-fault accident to the mix and only 10 percent of insurance companies in California would write her, at a six-month premium of approximately $7,409, according to the IINC. Forget Allstate, Geico, Progressive and State Farm; Lohan may have to obtain a high-risk policy directly through the California Department of Insurance.

And because DUIs can remain on a person's driving record for 10 years, Lohan may now expect to pay nearly $15,000 a year for car insurance well past her big 3-0. My guess is she's good for it.

The IINC says the cost of Lohan's life insurance could go up as well because some insurers factor in a person's driving record before setting their life insurance premium. A DUI also can have an impact on your health insurance rates.

Lohan's wild insurance ride serves as a cautionary tale. With more and more insurers limiting their exposure these days, any signs of risky behavior can result in unpleasant insurance rate increases, fewer insurers to choose from, and even nonrenewal.

As Lohan is learning the hard way, it's far cheaper to call a cab.

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