Does car insurance cover driving while intoxicated?

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 such as sleeping pills, painkillers or cold and flu tablets can influence your driving ability, and which may affect whether your insurer will pay out a claim.

If you’re driving under the influence of alcohol or drugs and you cause a car accident that damages property and/or injures individuals, the affected parties will likely be able to claim compensation from your Compulsory Third Party (CTP) insurance. It may be less clear whether your insurer will also cover damage to your own vehicle.

Some insurers won’t cover damages if you’re driving while intoxicated and you don’t comply with the conditions laid out in the Product Disclosure Statement (PDS). If you have a history of drink-driving violations, you may want to check the terms and conditions of your policy. 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.

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