Auto Insurance And Dui Accidents: What's Covered?

Driving under the influence (DUI) is a serious issue that can have life-altering consequences. In the event of a DUI accident, one of the pressing questions that arises is whether auto insurance will provide coverage for the damages incurred. The answer to this question is complex and depends on various factors, including the state in which the accident occurred, the specific insurance provider, and the circumstances of the accident. While auto insurers typically cover DUI accidents, the extent of coverage can vary significantly.

In some states, such as New York, insurance providers are required to cover emergency medical assistance for the intoxicated driver. However, once the driver is stabilized, coverage for additional medical treatment may not be provided. On the other hand, liability insurance typically covers the expenses of the other driver and their passengers, including medical bills and property damage, up to the policy limit. It's important to note that insurance companies may attempt to settle quickly and for lower amounts in DUI cases.

The consequences of a DUI conviction extend beyond the scope of insurance coverage. Convicted individuals often face legal repercussions, including license suspension, community service, and fines. Additionally, insurance rates are likely to increase significantly, and insurers may even cancel or refuse to renew policies for high-risk drivers.

Liability insurance and DUI accidents

Liability insurance is a minimum requirement for all vehicle owners in Texas and New York. In Texas, liability insurance minimums are $30,000 per person for injuries, $60,000 per accident for injuries, and $25,000 to cover property damage. In New York, the minimum liability coverage is $25,000 for bodily injury, $50,000 for bodily injury resulting in death sustained by one person, $50,000 for bodily injury not resulting in death sustained by two or more people, $100,000 for any injuries resulting in death sustained by two or more people, and $10,000 for property damage.

If you are involved in a DUI accident, liability insurance will cover the other driver's accident-related expenses and financial losses, including the cost of their vehicle if it is totaled. This is true even if the accident occurs while you are breaking the law by driving under the influence. However, liability insurance will not protect you if the people in the other vehicle file a personal injury lawsuit against you for severe injuries.

If you are the one who has been injured by a drunk driver, the drunk driver's insurance company is still liable for the damages you suffered if you were seriously injured. In this case, you can expect the drunk driver's insurance provider to aggressively attempt to settle your case quickly.

If you are the drunk driver, your insurance company is unlikely to pay out for your damages. In New York, for example, insurance companies are allowed to exclude personal injury coverage in cases where the insured driver was under the influence of drugs or alcohol. However, they are still required to pay for any necessary emergency health services.

Medical coverage for DUI accidents

Coverage for the Intoxicated Driver

In some states like New York, insurance providers are required to cover emergency medical assistance for the intoxicated driver. This means that any medical treatment necessary to save the driver's life will be covered. However, once the driver is stabilised and no longer at risk of dying, the insurance company may not provide coverage for additional medical treatment. In such cases, the driver's health insurance policy would come into effect to cover further medical expenses. It is important to note that lost wages due to the accident may not be covered by the auto insurance provider.

Coverage for the Other Driver and Passengers

If you are involved in a DUI accident and are deemed at fault, your liability insurance will typically cover the other driver's and passengers' accident-related expenses and financial losses, including medical bills and vehicle repairs or replacement. The minimum liability coverage requirements vary by state, so it is important to review your specific policy to understand the extent of your coverage.

Coverage for Passengers in Your Vehicle

If you have passengers in your vehicle who are injured in a DUI accident, their medical coverage will depend on their own health insurance policies and Personal Injury Protection (PIP) or uninsured motorist coverage if they have it.

Impact on Insurance Rates and Policy Renewal

It is important to understand that a DUI conviction can significantly impact your insurance rates and policy renewal. Insurance providers may increase your premium drastically or even refuse to renew your policy, considering you a "'high-risk'" driver.

In summary, while there may be some coverage for medical expenses related to a DUI accident, it is not comprehensive. The specific coverage will depend on the state, the insurance provider, and the individual policy details. It is always advisable to seek legal counsel to understand your rights and options following a DUI accident.

Collision and comprehensive insurance for DUI accidents

In most states, a car insurance company cannot deny a collision or comprehensive claim, regardless of whether the driver was under the influence or not. Collision insurance helps pay to repair or replace a vehicle, while comprehensive coverage includes collisions with animals or fixed objects. You should receive a check for total loss or repairs, though you may dispute the amount offered, and it may not always be enough to cover the cost of a brand-new vehicle.

However, there are some important things to keep in mind. Firstly, insurance companies are not required to cover intentional acts, and they may argue that drinking and driving is intentional conduct. If your insurer is denying coverage for losses that resulted from your DUI-related accident, you may need to hire a lawyer to try to change their decision. Secondly, while your insurance company may not be able to drop you immediately after a DUI, they can refuse to renew your policy and drop you later. In the meantime, they will likely re-classify you as a "high-risk" driver and increase your premium.

Insurance policy renewal after a DUI

A DUI conviction can have serious consequences for your auto insurance, and you may even be dropped by your insurer. If you keep your policy, your rate will almost certainly increase substantially, and this may continue for several years until the DUI is removed from your record.

Informing Your Insurer

It's a good idea to inform your insurance company of your DUI conviction. While you are not legally or contractually obligated to do so, they will likely find out when they check your driving record prior to your next policy renewal. Being proactive can save you the scramble of finding a new insurer if they decide to drop you as a policyholder.

Filing an SR-22 or FR-44 Form

In most states, courts will order DUI offenders to link a certificate of financial responsibility, known as an SR-22 form, to their auto insurance policies. This document attests that you have the legally required minimum insurance coverage for your state. In Florida and Maryland, a similar document called an FR-44 is required, and in Florida and Virginia, these certificates are known as FR-44s. Requesting one of these certificates from your insurance company effectively notifies them of your conviction.

Rate Increases

When your policy is up for renewal following a DUI conviction, your premiums will increase. The amount of the increase varies by state and your driving history. A survey commissioned by Insurance.com found that average premium hikes ranged from 28% to 371% depending on the state, with a national average of an 80% increase, or $1,163.

Shopping for a New Insurer

If your current insurer cancels your policy or makes your premiums unaffordable, you can get quotes from other insurers or shop for the lowest premiums. It's worth comparing rates, as each provider determines rates in their own way, and you may be surprised by the difference between the highest and lowest rates offered.

State-Provided Insurance

If you are unable to find an affordable policy from a conventional insurance provider, you can turn to your state's high-risk insurance pool as a last resort. While this insurance is available to all, it is never inexpensive.

Waiting It Out

In most states, a DUI will be removed from your driving record within five to ten years, although some states keep it on record for much longer, and a handful never remove it. Once the offense is removed from your record, it will no longer affect your insurance eligibility or rates, so you may eventually be able to get affordable coverage again.

Intentional conduct and DUI accidents

Driving under the influence (DUI) is a criminal offence in the United States. It is illegal in every state, and those convicted of a DUI face penalties such as fines, jail time, and license suspension. When a DUI involves an accident, the driver may also be liable for injuries and property damage.

In the context of auto insurance, DUI accidents can be considered intentional conduct, and insurers may deny coverage for losses resulting from such incidents. Auto insurance policies typically provide coverage for accidents caused by negligent behaviour, but not for intentional conduct or gross negligence. Insurers may argue that drinking and driving is intentional conduct since individuals who drink and drive intentionally put themselves in a position to cause an accident. They choose to drink alcohol, get drunk, and drive, knowing the potential dangers and consequences.

If an insurer denies coverage for a DUI accident, the policyholder may need to hire a lawyer to challenge the insurer's decision. Even if the insurer agrees to cover damages related to the accident, they will not defend or provide coverage for claims of intentional misconduct. In such cases, the driver will be personally liable for any damages awarded for intentional misconduct.

It is important to note that driving under the influence does not automatically imply fault for an accident. To establish fault, it must be proven that the intoxicated driver's actions, or failure to act, were unreasonable or careless, and that there was a direct link between these actions and the resulting injuries or property damage.

The impact of a DUI accident on insurance rates and "insurability" is also significant. Insurance companies may increase premiums drastically or even cancel policies following a DUI conviction.

Frequently asked questions