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Do Auto Insurance Cover Drunk Driving Accidents?

Do Auto Insurance Cover Drunk Driving Accidents Blog

Your auto insurance covers damages caused by a crash. But, what occurs if the collision was brought about by drinking and driving? Will an auto insurance company pay for an accident caused by drunk driving? Read on to learn more about the different drunk driving accidents and auto insurance scenarios and how it may or may not affect you. Anyone who drives when they’re intoxicated with either alcohol or drugs can result in an exorbitant fine and jail time. Even if you are found guilty and are placed at substantial financial risk if you get into an accident as a result of your overindulgence, you might be surprised to learn that your auto insurance company will cover any accident caused by drinking and driving, but with restricted insurance policy terms. In Malaysia, the influence of alcohol is a general exclusion for car insurance in Malaysia.

Why Insurance Companies Cover Drunk Driving?

Indeed, drunk driving is illegal. However, your crime is considered unintentional. Yes, you readily drove under the influence of drugs or liquor. But as ready as you are, nobody ever plans on getting into an accident. That is why–even though your insurance company doesn’t cover vehicle or property damage due to drugs or alcohol influence. But the insurance companies will still have to pay for third-party bodily injury and property damage, and subsequently, the insurance company still has the right to use the to claim back from the insured.

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Case Scenario

Here’s a case scenario for you– A drunk driver has damaged a third party car and injures the 3 victims inside the vehicle. The victim’s family decide to sue the drunk driver and eventually awarded by the court RM200k. The insurance company will first pay for RM200k compensation. A few weeks later, the drunk driver received a letter from the insurance company and instructed him to pay for the RM200k plus the legal expenses because alcohol’s influence is an exclusion.

What Happens If I Declare Bankruptcy

If a victim wins a lawsuit, your financial income may be taken to pay the judgment at all costs. You should note that though in some legal matters, you may be discharged when you declare bankruptcy, however, it is not the case for drunk driving lawsuits. Your financial obligation regarding drunk driving will stay on your record even if you declare bankruptcy.

What Can Happen to My Policy After Drunk Driving?

Eventually, your auto insurance company will most likely pay for your victim’s losses– regardless of whether you were driving under the influence of drugs or alcohol. But after the accident, you insurance policy might be void or you could pay twice as much for vehicle insurance after your at-fault crash.


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Please don’t think that you can escape from drink and drive offense, even though insurance companies compensate the victims under the law, they can always use the subrogation right to claim back from you, and such offense is heavily penalized under the Malaysian laws.

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