Does Car Insurance Cover Drunk Driving Accidents? An Insurance Insider Explains
It’s one of the most fraught questions in the insurance world: Does a policy cover damages caused by a driver who made the criminal decision to get behind the wheel while intoxicated? On one hand, driving under the influence is an illegal, reckless act. On the other, the very purpose of insurance is to pay for accidents. It feels like a paradox. If a driver breaks the law, should their insurance still protect them? And more importantly, what happens to the innocent people they hit? The answer has profound financial consequences for everyone involved. Let’s untangle the legal and contractual obligations to reveal what car insurance does—and does not—cover in a drunk driving accident.
The Short Answer: Yes, in Most Cases.
Surprisingly to many, a standard auto insurance policy will typically cover the damages from a drunk driving accident, up to the policy’s limits. The primary purpose of liability insurance is to protect the public by providing a source of financial compensation for victims of an insured driver’s negligence. Drunk driving is considered an extreme form of negligence, not a pre-meditated “intentional act” to cause a crash, which would be excluded.
However, while the policy may pay for the immediate damages, it will not protect the drunk driver from the devastating long-term financial, legal, and personal consequences that inevitably follow.
Why Would Insurance Cover an Illegal Act? The Principle of Public Protection
This is the crux of the issue. Insurance policies are designed with an “intentional acts exclusion.” This means if you intentionally and deliberately crash your car into your neighbor’s fence during an argument, your insurance will not cover it because you intended the damage. However, the law and the courts have consistently ruled that a person driving drunk, while making a criminally negligent choice, does not have the specific *intent* to cause a car crash. They intended to drive while drunk, but they did not intend the resulting accident.
More importantly, if insurance companies could deny claims based on the driver’s intoxication, it would leave innocent victims with no way to pay for their medical bills and vehicle repairs. The fundamental purpose of mandatory liability insurance is to ensure that victims are made financially whole. Therefore, the policy is obligated to respond.
Coverage for the Innocent Victims: The Top Priority
If you are hit by a drunk driver, their insurance is the primary source of compensation for your losses. Here is how it breaks down:
The Drunk Driver’s Liability Policy Pays For:
- Bodily Injury (BI): This covers your medical bills, lost wages from being unable to work, long-term rehabilitation costs, and compensation for pain and suffering.
- Property Damage (PD): This pays to repair or replace your vehicle and any other property that was damaged, such as a laptop that was in your car.
The Critical Role of Legal Representation
DUI accident claims are not simple fender benders. The damages are often severe, and the cases can be complex. Insurance companies may still try to minimize the payout. This is a situation where you absolutely need an expert on your side. Securing the best auto accident attorney is crucial to ensure all of your current and future medical needs are accounted for and that you are compensated fairly for your trauma.
What If Their Coverage Isn’t Enough?
If the drunk driver has only state-minimum coverage, it can be exhausted very quickly by serious injuries. This is why having adequate Uninsured/Underinsured Motorist (UIM) coverage on your own policy is so important. It acts as a safety net, stepping in to cover your expenses when the at-fault driver’s insurance runs out.
Coverage for the Drunk Driver: A Complex and Costly Reality
While the drunk driver’s policy is busy paying for the victim’s damages, what about their own injuries and vehicle? This is where things get more complicated.
Will Their Own Policy Cover Their Damages?
- Collision Coverage: In most states and with most standard policies, yes. If the drunk driver carries optional collision coverage, their insurance will likely pay to repair or replace their own vehicle, minus their deductible. Some policies, however, may contain a specific exclusion for damage that occurs while the insured is committing a crime. It is essential to read the fine print.
- Medical Payments (MedPay) or Personal Injury Protection (PIP): Similarly, if the driver has this optional coverage, it will generally cover their own initial medical bills up to the policy limit, regardless of fault.
- What is NOT Covered: The insurance policy will absolutely NOT cover anything related to the criminal charges. This includes bail, legal defense fees for the DUI case, fines, or court-ordered alcohol education programs.
The Aftermath: The True Cost of a DUI Accident
A common misconception is that if insurance pays the claims, the driver gets off easy financially. Nothing could be further from the truth. The immediate payout is just the beginning of a long and brutal financial fallout.
1. Policy Cancellation or Non-Renewal
This is a virtual certainty. Once a DUI conviction hits their record, an insurance company will see the driver as an unacceptable risk. At the end of the policy term, they will be sent a notice of non-renewal, leaving them scrambling for new coverage.
2. The SR-22 and High-Risk Insurance
To get their license reinstated, the driver will be required by the state to file an SR-22. This is not an insurance policy itself, but rather a certificate filed by an insurer with the DMV, proving that the high-risk driver has liability coverage. Only certain insurance companies offer SR-22 filings, and the policies are incredibly expensive. The driver’s insurance costs will easily triple or quadruple, and this will last for three to five years. Their challenge will be finding even the cheapest car insurance providers that will accept them, and even those “cheap” rates will be staggering.
3. Civil Lawsuits and Punitive Damages
If the damages to the victims exceed the drunk driver’s policy limits, they can be sued personally for the difference. Furthermore, because a DUI involves gross negligence, victims can sue for punitive damages—extra money awarded by a court specifically to punish the wrongdoer. In many states, insurance policies are legally prohibited from paying for punitive damages, meaning this money comes directly out of the drunk driver’s personal assets.
Tools for Responsible Driving and Legal Preparedness
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Check Price on AmazonFrequently Asked Questions (FAQ)
Will the insurance company pay for the drunk driver’s bail or legal defense?
Absolutely not. A car insurance policy covers civil liability for accidents. It has nothing to do with criminal defense. All costs associated with the DUI charge—bail, lawyer fees, court fines, mandatory classes—are the sole responsibility of the driver.
If I’m hit by a drunk driver, will my insurance rates go up?
No. This would be considered a “not-at-fault” accident for you. Your insurance company cannot raise your rates for being the victim of a crime. Your rates would only be affected if you had to file a claim under your own collision or UIM coverage and had prior at-fault accidents on your record.
What if the drunk driver crashes my car while I let them borrow it?
This is a nightmare scenario. In general, your insurance follows your car. Your policy would be on the hook for the damages. However, if your insurance company can prove you knowingly let an intoxicated person drive your car, they could attempt to deny the claim based on a “permissive use” violation, leaving you with immense legal and financial exposure.
Conclusion: Coverage Doesn’t Mean Protection
While car insurance will, in most cases, cover the immediate financial damages of a drunk driving accident, this is a cold comfort. It does nothing to erase the trauma inflicted upon victims. And for the driver who made the choice to get behind the wheel, the insurance payout is a mere footnote in a story of catastrophic personal failure. The policy will not pay for the criminal record, the loss of freedom, the public shame, the years of cripplingly high insurance rates, or the crushing weight of guilt. The insurance check may get cashed, but the true consequences of a drunk driving accident are a debt that can never be fully repaid.
Disclaimer: This article provides general information about insurance industry practices and does not constitute legal advice. Insurance policies and state laws vary. The decision to make the incredibly dangerous and illegal choice to drive drunk has severe legal consequences. For legal advice regarding a specific incident, you must consult with a qualified attorney in your jurisdiction.