Drunk Driving: Auto Insurance Coverage?

Whether your auto insurance covers drunk driving accidents depends on the specific wording of your policy agreement and the state in which the accident occurred. In some cases, the insurer will deny coverage on the grounds that you were partaking in illegal activity, whereas in other cases, the insurer may cover the damages.

Drunk driving accidents and insurance liability

Drunk driving accidents can have serious consequences, including criminal charges, increased insurance rates, and license suspension. In the aftermath of such an incident, it is important to understand your rights and responsibilities regarding insurance liability.

Insurance Coverage for Drunk Driving Accidents

Whether your car insurance covers drunk driving accidents depends on the specific wording of your policy agreement. Some insurance companies may deny coverage because drunk driving is an illegal activity. However, in many cases, insurance companies will pay for damages caused by drunk driving accidents, as they are not typically considered intentional acts.

In states with liability insurance laws, the liability portion of your insurance will cover the other driver's accident-related expenses and financial losses, including vehicle repairs or replacements. Your insurance will also likely cover your vehicle if it is totaled, but this could result in significantly higher insurance rates in the future.

Comparative Negligence and At-Fault States

It is important to note that drunk drivers are not always automatically responsible for a car accident. In comparative negligence states, multiple drivers may be assigned blame for an accident, and insurance companies for both drivers may need to make payments. On the other hand, in at-fault states, the at-fault party's insurance will pay any claims brought forward after an accident.

Insurance Premiums and Policy Cancellation

Drunk driving accidents often lead to increased insurance premiums, especially if you caused the collision or were convicted of a DUI. Insurance companies may classify you as a "high-risk" driver and significantly raise your rates. Additionally, insurance companies may refuse to renew your policy or cancel it altogether after a DUI conviction.

Punitive Damages and Intentional Misconduct

While insurance companies may cover various damages resulting from drunk driving accidents, they do not typically pay punitive damages. These damages are awarded to victims of intentional accidents and must be paid out of the drunk driver's pocket. If a drunk driver is found guilty of intentional misconduct, they will be personally liable for any damages resulting from their actions.

Seeking Legal Assistance

Dealing with the aftermath of a drunk driving accident can be complex, and insurance companies may try to deny liability or pay only the minimum amount. It is recommended to seek legal assistance from a skilled lawyer who can help you navigate the process, calculate your damages accurately, and ensure your rights are protected.

Intentional misconduct and insurance coverage

When it comes to auto insurance coverage for drunk driving accidents, the issue of intentional misconduct often comes into play. While drunk driving is an illegal act, insurance companies may still provide coverage in some cases, as it is not always considered an intentional act to damage one's vehicle or harm others. However, intentional misconduct is typically not covered by insurance policies, and insurers may try to paint the policyholder's behaviour as such to avoid payouts.

In the context of auto insurance and drunk driving, intentional misconduct can be argued by insurance companies as the policyholder's intentional decision to operate a vehicle recklessly and increase their risk of causing an accident. This argument can be particularly compelling if the policyholder has a history of drunk driving or similar offences.

To establish intentional misconduct, insurers must generally prove two things: that the insured intended to act, and that they specifically intended to harm a third party. In other words, the insurer must demonstrate that the policyholder desired to cause the consequences of their actions or believed that those consequences were substantially certain to occur.

For example, in the case of Illinois State Bar Association Mutual Insurance Company v. Leighton Legal Group, LLC, a professional liability insurer filed a declaratory judgment action against its insureds, a law firm and an attorney, arguing that it had no duty to defend them because their actions constituted intentional misconduct and were excluded from coverage. The appellate court agreed with the insurer, finding that the attorney's conduct, which included self-dealing and breach of trust, fell within the policy's exclusion for "any criminal, dishonest, fraudulent or intentional act or omission."

In the context of auto insurance, if a policyholder has a history of drunk driving and continues to engage in this behaviour despite knowing the risks, an insurer may have a stronger case for arguing intentional misconduct. However, if the policyholder can demonstrate a lack of intent to cause harm, they may be able to refute the insurer's claims.

It is important to note that the interpretation of intentional misconduct and insurance coverage can vary depending on state laws and the specific wording of the insurance policy. Policyholders facing allegations of intentional misconduct should carefully review their policy and seek legal advice to understand their rights and options.

Insurance companies' tactics to pressure customers

Whether your auto insurance covers drunk driving accidents depends on the wording of your policy agreement. In some cases, the insurer will deny coverage because you were partaking in illegal activity. However, in other cases, the insurer may cover the damages.

Insurance companies have been known to employ various tactics to pressure customers and avoid paying out on claims. Here are some common tactics to watch out for:

• Misrepresenting the policy: Insurance companies may blatantly misrepresent policy terms to their customers, wrongfully claiming that certain damages are not covered when they actually are.
• Undervaluing claims: Some insurance companies will accept certain damages but value them below the policy deductible, so they don't have to pay anything.
• Causing unnecessary delays: They might drag out the claims process by repeatedly requesting the same documentation or failing to send an adjuster in a timely manner.
• Not communicating: Insurance companies may fail to return phone calls, emails, or other forms of communication, leaving policyholders in the dark about the status of their claims.
• Unreasonable settlement offers: Insurers may pressure policyholders to accept low settlement offers that don't adequately cover their losses.
• Denying claims without a valid reason: Some insurers will quickly deny a valid claim without providing a justification, hoping that the claimant will give up.
• Refusal to pay medical bills: They may claim that your injuries are pre-existing or that you are exaggerating your injuries to defraud them.
• Stalling: Insurance companies may stall by losing your paperwork, transferring you to other departments, or refusing to answer your calls.
• Using cryptic fine print: Insurance contracts often contain incomprehensible fine print that policyholders cannot easily understand, allowing insurers to deny claims based on loopholes.
• Discriminating based on credit scores: Insurers use credit reports to set premiums, penalizing those with low credit or no credit history.
• Cancelling policies: They may refuse to renew policies or abruptly cancel them after a policyholder inquires about making a claim.

Insurance claim process in fault and no-fault states

In the US, the process of filing an insurance claim after a car accident depends on whether the state is a "fault" or "no-fault" state.

Fault States

In most states, when a car accident occurs, one party is considered "at fault" and must cover the injuries of the other driver and their passengers, usually through their liability insurance coverage. The at-fault driver's insurance will also cover damage to the other driver's vehicle and property.

To determine who is at fault, claims adjusters usually talk to witnesses, look at police reports, and review the accounts of the accident from those involved. Photos of the damage and specific state traffic laws can also be used to help determine fault.

If the situation is clear-cut, or one party admits fault, the at-fault driver's auto insurance should cover any property damage, medical bills, and, in some cases, compensation for other damages, such as pain and suffering. However, if it is unclear who is at fault, a claims adjuster will be brought in to investigate further.

No-Fault States

In some states, known as "no-fault" states, drivers must carry personal injury protection (PIP) insurance, which covers medical expenses after a car accident, regardless of who was at fault. In these states, drivers rely on their own insurance coverage to pay for accident-related losses, regardless of who caused the accident. No-fault states may also allow drivers who suffer severe injuries to sue the at-fault driver.

No-fault states include Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, North Dakota, New Jersey, New York, Pennsylvania, and Utah.

Legal recourse for victims of drunk driving accidents

Drunk driving accidents can have devastating consequences for victims and their families, resulting in life-changing injuries, emotional trauma, and financial hardship. If you've been a victim of a drunk driving accident, it's crucial to understand your legal rights and options for recourse. Here's an overview of the legal recourse available to victims:

Reporting the Incident and Gathering Evidence

The first step is to ensure your safety and call the police to report the accident. Avoid confronting the drunk driver and, if possible, get their vehicle details and let the police handle the situation. Obtain the investigating officer's information and gather evidence such as witness contact details, photos of the scene, and any visible injuries. Medical records detailing your injuries and treatment are also crucial evidence.

Seeking Medical Attention

Seeking prompt medical attention is essential for your well-being and for creating a record of your injuries. Follow your doctor's treatment plan, as delaying treatment could negatively impact your injury claim.

Contacting an Attorney

Consult an experienced attorney who specialises in drunk driving accident cases as soon as possible, ideally before discussing with an insurance company. An attorney can guide you through the complex legal process, protect your rights, and help you navigate insurance claims and liability issues.

Pursuing Compensation

Victims of drunk driving accidents may be able to pursue financial compensation for their losses. This can include medical expenses, lost wages, pain and suffering, and other damages. Depending on the jurisdiction, you may be able to file a personal injury claim or a wrongful death claim if a loved one was killed in the accident.

Insurance Claims

Insurance claims in drunk driving cases can be complex. Victims typically file a claim with the at-fault driver's insurance company, providing details of the incident, police reports, and evidence of the driver's intoxication. Insurance companies will review the claim and may offer a settlement. It's important to carefully review any proposed settlement to ensure it covers all your damages and losses.

Dram Shop Claims

In some jurisdictions, such as Florida, you may have the option to file a "dram shop" claim. This allows you to hold establishments or vendors, such as bars or restaurants, liable for serving alcohol to the drunk driver. Each state has its own specific laws regarding the circumstances under which establishments can be held liable.

Punitive Damages

In certain cases, victims may be able to seek punitive damages, which serve as a form of punishment for the at-fault driver and as a deterrent. Punitive damages are typically awarded when the driver's actions are deemed egregiously negligent or intentional, such as in cases with a high blood alcohol concentration or a history of similar offences.

Remember, the legal process can be intricate, and the specific laws and options available to you may vary depending on your location. Consulting with a knowledgeable attorney is crucial to understanding your unique situation and protecting your legal rights as a victim.

Frequently asked questions