Do Car Insurance Companies Cover DWI Accidents? - Michael & Associates (2024)

A DWI conviction usually puts a big dent in your car insurance. On average, your insurance premium for full coverage goes up roughly 70% after a DWI conviction. An insurer might even refuse to provide coverage if a DWI shows up on your driving record.

The consequences might be even more severe if a DWI led to a car accident. For instance, a car insurance company might refuse to cover damage or injuries arising from a DWI accident.

Follow along to learn about the serious impact of a DWI on auto insurance.

Understanding the Impact of DWI/DUI on Insurance Coverage

Some states use DWI (driving while impaired) and DUI (driving while intoxicated) interchangeably, but in Texas, they are two different offenses.

Driving while impaired (DWI), meaning you’re under the influence of alcohol or drugs, can lead to serious legal and financial consequences as well as physical harm.

In Texas, a DUI applies primarily to any driver under 21 who operates a motor vehicle with any detectable amount of alcohol in their system.

If you’re convicted of either DWI or DUI, you might face:

• Misdemeanor or felony charges
• Jail or prison sentence. For instance, a first-time DWI offender in Texas might be sent to jail for up to 180 days.
• Fines up to $10,000
• Revocation or suspension of your driver’s license
• Installation of an ignition interlock device in your car
• Participation in an alcohol education program
• Requirement to get an SR-22 financial responsibility certificate proving that you’ve got the state-mandated amount of liability coverage

Furthermore, DWI can lead to crash injuries or deaths. According to the National Highway Traffic Safety Administration, 32% of deaths in car crashes are tied to drunk driving.

Aside from the possibility of being hit with a hefty court fine, a DWI can cause your car insurance premiums to skyrocket. How high your premiums climb depends on whether you had a spotless driving record before the DWI or a not-so-great driving record. How your insurer determines its rates also will affect your post-DWI premiums.

If you’ve been convicted of DWI in Texas, your premiums might rise by at least 50%. Of course, your driving record and insurer’s premium calculations would be key factors in determining whether your premium hike in Texas is more or less than 50%.

DWI vs. DUI: They Don’t Always Have the Same Meaning

Different states refer to drunk driving or drugged driving charges in different ways.

Under Texas law, for example, DWI involves operating a vehicle in public while you’re intoxicated.

“You are legally intoxicated in Texas when your blood alcohol concentration reaches 0.08%, but you are breaking the law as soon as drugs or alcohol affects your driving — or flying or boating — ability,” says the Texas Department of Transportation.

A first-time DWI offender in Texas can be charged with a Class B misdemeanor. If convicted, this offender is sent to jail for at least three days and up to 180 days. They also could be fined $2,000 and lose their driver’s license for up to one year.

Here are the penalties for a second-time DWI offense (Class A misdemeanor) in Texas:

• Up to a $4,000 fine
• One month to one year in jail
• Loss of driver’s license for up to two years

Here are the penalties for a third-time DWI offense (third-class felony) in Texas:

• $10,000 fine
• Two to 10 years in prison
• Loss of driver’s license for up to two years

Texas is one of 13 states where DWI is used to refer to impaired driving. Thirty-two states refer to impaired driving as DUI. Meanwhile, a handful of states use terminology such as operating while intoxicated (OWI), operating under the influence (OUI) or operating a vehicle impaired (OVI).

In Texas, DUI is used, but only in cases when minors (those under age 21) are accused of driving a vehicle under the influence of alcohol. This charge is known as DUIA (driving under the influence of alcohol) by a minor.

While each state has its own penalties for drunk or drugged driving convictions, terminology like DWI and DUI generally carries a similar meaning.

How Car Insurance Typically Works

Nearly every state, including Texas, requires drivers to carry a minimum amount of bodily injury liability and property damage liability coverage. If you cause an accident that injures someone else (not you or your passengers) or damages someone else’s property, liability coverage helps cover their bills.

Many motorists also buy comprehensive and collision coverage, mostly because it’s usually required if you have a car loan or lease. Collision coverage helps pay for damage to your car when you’ve been in an accident. Comprehensive coverage provides financial protection for non-collision damage to your car, such as damage done by a falling object, flood or vandalism.

Some states may require other types of coverage, such as personal injury protection (PIP) or uninsured/underinsured motorist coverage.

People typically take out car insurance policies for six- or 12-month periods, with many people paying their premiums on a monthly basis.

Some DWI Insurance Claims May Be Denied

A claim involving a DWI accident can fall under several parts of your car insurance policy, such as bodily injury liability, property damage liability, and comprehensive or collision coverage. In some cases, an insurer might deny a DWI-related claim under these or other portions of your policy.

For example, an insurer might deny your claim if you were found to be at fault in a DWI accident. Under the “comparative fault” portion of Texas law, being at fault in an accident would require a share of fault of 51% or more.

Additionally, an insurer might include language in their liability clauses saying that if you intentionally cause a crash, your claim likely will be rejected. DWI could fall under the category of intentionally causing a crash.

But a DWI doesn’t necessarily mean a drunk driver is entirely at fault. Let’s say a drunk driver runs into your car while you’re texting behind the wheel. In this case, fault might be assigned to both drivers.

The Role of Negligence in DWI Cases

Laws regarding negligence might come into play in a DWI crash. State negligence laws don’t differ much from state to state, although they might rely on a standard of comparative or contributory negligence.

Failing to exercise a level of care that would reduce risk of harm to someone is known as negligence. The concept of negligence forms the legal foundation for many personal injury lawsuits.

As opposed to losses tied to intentional wrongdoing usually not being covered by car insurance, losses connected to negligence (carelessness) in a DWI accident probably will be covered. “While you intended to drink and you intended to drive, you didn’t intend to get into a wreck,” the Nolo.com legal website explains about negligence.

Comparative vs. Contributory Negligence

States like Texas, Illinois and New York are comparative negligence states. Texas follows a modified negligence rule. So, someone hurt in a DUI accident in Texas could seek monetary damages if they’re partially at fault. But someone hurt in a DWI accident in Texas could not recover damages if they’re more than 50% at fault.

By contrast, states like Maryland, North Carolina and Virginia are contributory negligence states. Under the contributory negligence standard, if you’re as little as 1% at fault in a DWI accident, you might not qualify for monetary damages in a lawsuit.

Insurer’s Argument: Intentional Conduct

From the standpoint of many auto insurance companies, DWI is an intentional act. In other words, a driver intentionally became intoxicated and intentionally got behind the wheel of their car even though they knew or should have known that DWI is dangerous.

In an accident where an auto insurer views DWI as intentional, they might decline to provide a lawyer if you’re sued and might decline to cover monetary damages for other drivers or passengers who were hurt. Yet the insurer might approve a claim filed under your collision coverage if your car was damaged in an intentional DWI accident.

Limitation of Coverage Due to DWI

If a DWI accident involves a claim of intentional misconduct, an insurer generally limits a policyholder’s coverage.

In some cases, an attorney in a personal injury lawsuit includes a claim of intentional misconduct against a drunk driver who was at fault in an accident. If the plaintiff wins the case and a jury awards punitive damages, the drunk driver’s auto insurance won’t cover the damages. Instead, the drunk driver must pay the damages.

How is this possible? Under Texas case law, car insurers aren’t responsible for covering punitive damages awarded in a DWI accident case.

Possible Insurance Cancellation After DWI

If a DWI winds up on your driving record, your insurer will view you as a high-risk motorist. In some states, an insurer can’t cancel your coverage following a DWI conviction. In Texas, for example, your car insurance can’t be canceled unless your driver’s license has been suspended or revoked. But suspension or revocation happens in DWI cases.

If an insurer can’t cancel your coverage after a DWI conviction or decides against doing so, you should expect your car insurance premium to soar. If your insurer does cancel your policy after a DWI, you’ll be forced to look for coverage elsewhere. And that coverage might be extraordinarily expensive.

Seeking Coverage From Texas’ High-Risk Pool

What if you can’t find private coverage at all following a DWI? You may end up applying for coverage through your state’s high-risk insurance pool. Insurers in this pool must accept drivers who are assigned to them.

You’ll receive coverage in a risk pool regardless of your driving history, including DWI convictions. However, coverage from an insurance pool can be quite costly and might be limited to just liability insurance.

In Texas, the state Auto Insurance Plan Association oversees the high-risk pool for Texas drivers. Through the state plan, only the minimum amounts of bodily injury liability and property damage liability coverage are available. The minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident.

To be eligible for the Texas pool, you must have been rejected for coverage by two insurance companies within the past 60 days.

To apply for coverage through the Texas high-risk pool, you must work with an insurance agent to complete an application. Look for an agent who is already certified to sell coverage through the state plan.

Premium Increases and Challenges in Obtaining New Coverage

If your insurer cancels your coverage after a DWI, you’ll face significant challenges finding new coverage:

• Other insurers might reject your application.
• If another insurer accepts you as a customer, your premiums could be sky-high.
• If you must dive into your state’s insurance pool, a last-resort option for drivers with DWI convictions, premiums might be even higher than if they bought traditional coverage.

What about if you’re able to stay with your current insurer? Well, you’ll likely be hit with much heftier premiums.

In Texas, your premium for full coverage (liability, comprehensive, and collision coverage) will increase by an average of 64% if you have a DWI on your record compared with a driver who has a clean record. The Zebra, an insurance marketplace, estimates the increase will be 54%.

According to Bankrate, a personal finance website, here’s the average cost breakdown for drivers buying a full coverage car insurance policy:

• $2,613 per year for a Texas driver with a clean record.
• $3,901 per year for a Texas driver with a DWI on their record. That compares with a nationwide average of $4,790 per year for a driver with a DWI on their record, up from a pre-DWI average of $2,542.

The Role of Legal Assistance After a DWI Accident

It’s highly recommended that you obtain legal representation after a DWI accident. An attorney can help you navigate the legal process, lay out options such as pleading guilty or going to trial on a DWI charge, defend you in a criminal case or lawsuit, and fight denials of insurance claims.

As it relates to a DWI charge, an attorney might be able to negotiate a reduced jail sentence or lower fine. Regarding denial of an insurance claim, an attorney can take on tasks such as gathering evidence, negotiating with your insurance company and filing appeals.

If you try to handle a DWI case on your own, you could end up spending more time in jail, paying a higher fine or losing out on a claim payout from your insurance company, for example.

FAQs About Insurance Coverage for DWI Accidents

Does Car Insurance Cover DWI Accidents?

Whether car insurance covers a DWI accident depends a lot on the language in your policy. A policy normally covers a DWI accident, but the policy might not provide coverage if your insurer believes you intentionally caused the accident.

What Factors Influence Insurance Claims for DWI-Related Accidents?

An insurance claim related to a DWI accident may be approved or rejected depending on the circ*mstances surrounding the accident. For instance, if your insurer determines you acted intentionally in causing the accident, it might deny your claim.

Will a DWI-Related Accident Affect Insurance Premiums or Lead to Cancellation?

A DWI-related accident that shows up on your driving record is almost guaranteed to bump up your insurance premiums because you’re now considered a high-risk driver. The accident also might prompt your insurer to cancel your policy.

How Do You Secure New Insurance After a DWI-Related Coverage Cancellation?

To secure new car insurance after cancellation of coverage following a DWI, you’ll need to shop for coverage from another insurer or apply for coverage from your state’s high-risk insurance pool. In both cases, you should expect to pay a much higher premium.

Insurance Options for Drivers With a DWI on Their Record

Insurance options for someone with a DWI conviction on their record include buying coverage from an insurer that specializes in covering high-risk drivers or seeking coverage from a state’s high-risk insurance pool.

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