Does Car Insurance Cover DUI Accidents? Find Out Here!

You made a mistake and decided to drive after having a few drinks. Unfortunately, the unthinkable happened and you got into a car accident. As the cop approaches your window and that unmistakable smell wafts out, you realize you’re about to get charged with a DUI. But then another realization hits—what about your car insurance? Will they still cover the accident since you were driving under the influence?

The Harsh Reality – Car Insurance Rarely Covers DUI Accidents

The harsh truth is that in most cases, your standard auto insurance policy will not cover an accident that occurred while you were driving under the influence of alcohol or drugs. This is because virtually all insurance companies have strict clauses excluding coverage for claims involving negligent acts like DUI.

As The Zebra reports, most insurers consider driving while impaired to be a “willful and wanton” act—meaning you consciously chose to put others at risk through your reckless behavior. As a result, they can legally deny your claim and refuse to pay for any of the damages or injuries resulting from the accident.

Some real-world examples illustrate how strictly insurers enforce these exclusions:

• In 2018, a drunk driver in California crashed into a motorcyclist, causing severe injuries. His insurer refused to cover the $5.2 million settlement since he had a 0.24% blood alcohol level at the time.
• A Georgia man was convicted of DUI after causing an accident that killed his passenger. The victim’s family sued but his insurance provider denied the claim citing the DUI exclusion.
• In Florida, a judge ruled that an insurer could deny coverage to a drunk driver who struck another vehicle because driving impaired was considered an intentional act under the policy terms.

So unless your state has specific laws overriding these exclusions (more on that later), you’ll likely be on the hook for 100% of the accident costs out-of-pocket if you were DUI at the time. This includes damages to your vehicle, the other party’s vehicle, and any medical expenses for injuries caused.

Why Insurers Exclude DUI Situations

The rationale behind excluding DUI-related accidents from standard coverage is rooted in both moral and financial factors for insurance companies:

1. Discouraging Negligent Behavior: Car insurers don’t want to incentivize extremely risky, illegal behavior like drunk driving by agreeing to cover the costs when it leads to accidents. If they did, there would be less disincentive for impaired individuals to avoid getting behind the wheel.
2. Mitigating Financial Risk: From the insurer’s perspective, covering damages from DUI crashes is like opening a Pandora’s box of exposure to expensive, high-risk claims that could severely impact their profitability. By excluding this hazardous subset of drivers, they better control potential losses.
3. Protecting Other Policyholders: If insurers had to pay out on costly DUI claims frequently, it could drive up premium rates for all policyholders—even those who always drive sober. The exclusion prevents responsible drivers from unfairly subsidizing the poor choices of drunk drivers.

So in essence, DUI exclusions exist to deter reckless conduct, limit insurers’ liability on predictably risky policies, and keep rates affordable for the majority of law-abiding drivers. While it may seem harsh in specific cases, it’s an essential financial protection for insurance companies.

Potential Exceptions Where Coverage May Apply

There are a few rare exceptions where your insurance may still provide some degree of coverage after a DUI-involved accident:

Uninsured/Underinsured Motorist Coverage This optional add-on covers you if you’re hit by a driver with no insurance or insufficient insurance to pay your costs. Your insurer may cover damages under this provision, even if you were DUI—though they’ll likely still deny liability coverage to pay the other party’s expenses.

Comparative Negligence Laws
Some states like Pennsylvania follow “comparative negligence” rules where insurance coverage is not fully excluded if the impaired driver was less than 50% at-fault for the accident. Even if you were DUI, your insurer may have to cover a proportional amount if the other driver was more to blame.

State Laws Requiring Partial Coverage A handful of states, including Minnesota and Oklahoma, legally require insurance companies to cover a percentage (often 25-30%) of damages in a DUI accident regardless of policy exclusions.

However, these are very specific exceptions that don’t override the blanket exclusions under most standard insurance policies in the majority of states. But any potential coverage is better than none.

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How a DUI Accident Impacts Your Policy Moving Forward

Even if you manage to receive some insurance coverage after a DUI accident due to state laws or optional provisions, your auto policy is going to take a major hit moving forward.

According to consumer surveys by Quote Wizard, a DUI conviction alone can cause your insurance rates to spike by 94% on average when your policy renews. In some states like California, insurance hikes after a DUI exceed 135%.

The reason for these dramatic rate increases is that insurance companies now view you as an “ultra high-risk” driver prone to repeated infractions. A DUI on your record signals you could be:

• Likely to drive impaired again
• Frequently engaged in other reckless behaviors
• More prone to filing expensive claims in the future

As a result, insurers offset this added risk by charging higher premiums equivalent to a “DUI tax” on top of your normal rates. And you’ll face these penalties for 3-5 years until the DUI falls off your driving record.

But beyond rate hikes, there’s also a very real chance your insurance provider could simply opt to not renew your policy at all after a DUI conviction. Car insurance is a highly regulated industry, but most states allow companies to deny renewals for customers convicted of DUI—a huge hassle that forces you to shop for new, sub-standard coverage.

So in summary, even if you do receive some partial insurance protection after a DUI accident, the long-term financial fallout is still quite severe due to premium penalties or outright policy cancellation.

Protecting Yourself – Is “DUI Insurance” Worth It?

Given the bleak reality of how poorly standard car insurance policies handle DUI-related claims and convictions, your only real option to maintain comprehensive coverage may be to purchase a specialized “DUI insurance” policy from a high-risk insurer.

These policies, sometimes labeled as “DWI insurance,” offer a degree of liability coverage specifically for individuals with a DUI on their record that most mainstream insurers would reject. However, there’s an extremely steep price to pay:

• Premiums 2-4x Higher: Expect to pay $3,000-$5,000 per year, if not more, due to the high-risk nature.
• Higher Deductibles: Deductibles are typically $1,000 or more per incident.
• Limited Coverage Options: Many optional add-ons like comprehensive/collision are excluded.

So while a DUI-specific policy guarantees you’ll maintain auto insurance altogether, the tradeoff is paying an exorbitant “drunk driver tax” on your rates for years to come until your record clears.

For some individuals, these sky-high premiums may be worth it to have at least basic liability protection and remain a legal insured driver after a DUI. But it requires careful consideration of your finances versus the value of coverage.

Another option is to avoid a DUI conviction entirely by aggressively fighting the charges with a specialized DUI lawyer. While incredibly expensive, getting charges reduced or dropped enables you to retain your standard insurance without any DUI-related penalties.

The Wisest Choice: Never Drive Impaired

At the end of the day, even with potential exceptions or back-up high-risk coverage options, the only surefire way to avoid severe insurance implications is to never put yourself in the position of a DUI accident in the first place.

The consequences—both legally and financially—of choosing to drive under the influence are simply too devastating to risk. It’s far better to:

• Use a designated sober driver
• Take public transit or ride-share after drinking
• Or simply not consume alcohol/drugs if you plan on driving

While mistakes can happen, driving impaired is an easily avoidable lapse that insurance companies unequivocally do not tolerate. The penalties of skyrocketing rates, policy cancellation, and lack of comprehensive coverage just aren’t worth it.

So be smart, be responsible, and never get behind the wheel if you’ve had too much to drink or are under the influence. It could save your life, prevent immense pain for others, and certainly preserve your insurance policy from catastrophic fallout. An ounce of prevention is worth far more than dealing with the severe ramifications once that avoidable DUI accident occurs.

Real-Life Stories of DUI Accident Insurance Nightmares

The harsh realities of how insurance companies handle DUI accidents are better illustrated through real-life examples of individuals who experienced these nightmares firsthand:

Case Study 1: Policy Cancelled After DUI Accident

John B. from Texas had been with his auto insurance company for over 15 years without any incidents. That changed one night in 2021 when he made the mistake of driving home after having a few drinks at a friend’s house after work.

On his way home, John rear-ended another vehicle at a stoplight. Both drivers were uninjured, but John failed the breathalyzer test and was charged with a DUI. He reported the accident to his insurance provider hoping they would cover the repairs for both vehicles.

However, John’s insurer immediately denied the claim citing their standard DUI exclusion. To make matters worse, they informed him that they would be canceling his policy at the next renewal period due to the DUI conviction.

John initially panicked at the prospect of having to find new insurance after over a decade of building up a good record with his existing company. Even after his DUI fell off his record years later, he faced highly inflated rates from other insurers judged as a higher risk.

Case Study 2: State Laws Provided Partial Coverage

In Minnesota, Amanda F. was involved in a more serious DUI-related accident in 2019. After drinking at a holiday party, Amanda lost control of her vehicle on the highway and collided with another car, injuring the other driver.

Amanda was charged with a DUI and faced over $75,000 in damages between both vehicle repairs and the other party’s injuries. She assumed her insurance would deny any coverage due to the DUI.

However, Minnesota laws require insurers to provide a minimum of 25% coverage for DUI-related liability claims, regardless of policy exclusions. So while Amanda’s insurer denied paying the full $75,000, they were obligated to cover $18,750.

While better than nothing, the remaining $56,250 Amanda owed created immense financial hardship. Her insurance premiums also skyrocketed by over 125% for several years after the DUI incident.

Case Study 3: High-Risk “DUI Insurance” Was Only Option

Gary S. from Pennsylvania had a clean driving record until a DUI arrest in 2022 after being pulled over by police. Though he avoided an accident, Gary’s existing insurance provider dropped his policy after the conviction.

Unable to find any mainstream insurance companies willing to cover someone with a DUI, Gary’s only option was to purchase an expensive “DUI insurance” policy from a high-risk specialty insurer.

For minimum liability coverage only, Gary pays $4,200 per year in premiums to this insurer – over 3 times what he previously paid. His deductible is also an exorbitant $1,500, and he has no comprehensive or collision coverage.

Gary hopes to maintain this policy only until his DUI clears his record in a few years. But the immense costs have strained his finances considerably in the meantime, a price he’s paying for his mistake.

As these real-life stories demonstrate, experiencing a DUI accident or conviction can completely upend your insurance situation through policy cancellations, coverage denials, extremely inflated premiums, and limited high-risk policy options. The ramifications are long-lasting and financially devastating – powerful incentives to never drive under the influence.

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Frequently Asked Questions

Can you get a DUI for driving under the influence of legal medications? 

Yes, you can be charged with a DUI for driving while impaired by legal prescription or over-the-counter drugs.

Do insurance rates go up even if the DUI didn’t involve an accident?

Yes, insurance companies view any DUI conviction as a high-risk factor and will raise your rates significantly, even without an associated accident.

How long does a DUI stay on your driving record and impact insurance? 

A DUI typically remains on your driving record for 3-5 years in most states, increasing your insurance rates during that time period.

Can you be denied insurance entirely after a DUI conviction? 

Yes, many insurance providers will simply not renew or issue a new policy to someone with a recent DUI on their record.

Are there any insurance companies that don’t have DUI exclusions? 

No, virtually all standard auto insurance policies exclude coverage for accidents that occur when the driver was under the influence.

Final Thoughts

If you get a DUI and are involved in an accident, your car insurance likely won’t cover the damages. Most standard auto policies exclude coverage for incidents involving driving under the influence of drugs or alcohol. Insurance companies view DUI as an intentional act of negligence, so they can deny claims and even drop your policy entirely after a conviction.  

Your only options may be purchasing an expensive “high-risk” or “DUI insurance” policy at 2-4 times the normal rates, or hoping your state has laws requiring insurers to provide limited liability coverage despite a DUI. But avoiding a DUI in the first place is wisest to prevent devastating insurance consequences.