Will your car insurance pay out if drunk driving causes an accident? Driving under the influence of drugs or alcohol is illegal, however some insurers may still offer cover within the limits of their policy.
It’s not just alcohol that can affect your car insurance. Driving under the influence of drugs is also illegal, and some medications like sleeping pills, painkillers or cold and flu tablets can influence your driving ability. This may affect whether your insurer will pay out a claim after an accident.
If you’re driving under the influence of alcohol or drugs and cause a car accident that injures other drivers and/or pedestrians, these individuals will likely be able to claim compensation from your Compulsory Third Party (CTP) insurance. Damage to other vehicles and property from drink driving accidents could also be covered by your car insurance if you hold third-party property damage cover.
It may be less clear whether your insurer will also cover damage to your own vehicle in a drink-driving insurance claim. Even if you hold comprehensive car insurance, some insurers won’t cover damages if you’re driving while intoxicated. Driving under the influence is often among the exclusion conditions laid out in your car insurance policy’s Product Disclosure Statement (PDS).
If you have a history of drink-driving violations, you may want to check your car insurance policy’s terms and conditions. Even if your insurer will still cover your claim if you’re involved in an accident while drunk, you may face other penalties, like cancellation or non-renewal of your policy. If you’ll keep your policy, you could have to pay a higher excess when making future claims, and/or pay a higher car insurance premium.
Your driving history and experience are important factors that affect your car insurance premium. If you’ve had demerits or convictions for driving under the influence in the past, insurers may consider you a high risk and be more likely to charge you a higher car insurance premium.
Some insurers may decline to insure a driver if they have a drink-driving conviction or similar offence on their criminal record, or if their driver’s licence has been suspended or cancelled. In some cases, you may need to complete a drink-driving education course and/or fit an alcohol interlock device onto your vehicle before you can drive again and consider your car insurance options.
This article was reviewed by Alex Ritchie before it was published as part of RateCity's Fact Check process.
