Drink Driving and Insurance

[chrisgr31]

Can someone answer a question that has arisen in the office: -

If you are driving whilst over the limit and have an accident will your insurance company say the insurance is invalid?

I have a feeling that I have read on here, they would pay out a 3rd party claim but not damage to you and your car.

Incidentially this is a theoritcal question as we all rely on cars for work so don't drink and drive.

[Mr E]

I don't think they'd pay out at all if you were proven to be intoxicated. The guy you hit would then sue you for damages.....

[chrisgr31]

Mr E said:

I don't think they'd pay out at all if you were proven to be intoxicated. The guy you hit would then sue you for damages.....

This was the view that someone in the office has.

But if thats the case wouldn't we see more about it in the papers? Wqually if that was the case why do insurance companies apparently load the premiums of those who have been done for drink driving?

After all if they have an accident whilst over the limit the insurance company (on this viewpoint) won't have to pay up, therefore no increased liability.

[Mr2Mike]

The insurance company are pretty much obliged to shell out for third parties. I suspect they might be more reluctant than usual to pay for the DD's car though,

[loaf]

Most policies (all the ones I have ever seen, anyway) have a 'right of recovery' clause in them. Simply put, this says that if the insurance company has to pay out because the law says they have to, but they otherwise wouldn't have to (i.e. you've breached the terms and conditions of the policy by driving whilst unfit) then they can sue you for the amount they have to pay out plus 'reasonable costs'.

Thus, in the drunk driver scenario, the insurer HAS to pay out - provided you are in possession of a valid certificate of motor insurance - but they will come after you for their money as you have breached the terms of the policy.

[Mr E]

Thanks Loaf....

[Muncher]

loaf said:

Most policies (all the ones I have ever seen, anyway) have a 'right of recovery' clause in them. Simply put, this says that if the insurance company has to pay out because the law says they have to, but they otherwise wouldn't have to (i.e. you've breached the terms and conditions of the policy by driving whilst unfit) then they can sue you for the amount they have to pay out plus 'reasonable costs'. Thus, in the drunk driver scenario, the insurer HAS to pay out - provided you are in possession of a valid certificate of motor insurance - but they will come after you for their money as you have breached the terms of the policy.

That's correct.

Road rage incidents are often covered in the same way too.