Transportation

Vehicular Insurance: Losses due to Intoxication

Notice: this topic is no longer being updated.

Laws that prohibit insurance carriers from excluding coverage where claims arise from collisions resulting from driver intoxication. (Period covered: 1/1/1998 through 1/1/2007.)

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Variables: Vehicular Insurance: Losses due to Intoxication

  1. States fall into three classifications:
    • No Law - States that have no statutory or regulatory provision addressing vehicular insurance exclusion.
    • May Exclude - States that permit vehicular insurance exclusion.
    • May Not Exclude - States that require that insurance benefits be provided for personal injury and/or property damage arising out of the insured's operation of a vehicle while intoxicated or under the influence of alcohol (instead of permitting insurers to exclude such coverage).  In other words, insurers in States with this provision may not exclude insurance benefits solely because the insured was intoxicated or under the influence of alcohol.
  2. Types of Insurance that may be excluded:
    • Driver - Excludes from coverage benefits to a driver who operates the insured vehicle while intoxicated or under the influence of alcohol.
    • Passenger - Excludes from coverage benefits to passengers in the insured vehicle who sustain a loss because the driver of the insured vehicle operates the vehicle while intoxicated or under the influence of alcohol.
    • Third Party - Excludes from coverage benefits to third parties who sustain a loss because the driver of the insured vehicle operates the vehicle while intoxicated or under the influence of alcohol.
    • Personal Injury - Excludes the payment of expenses incurred on account of injury to the person (e.g., medical services) arising out of the operation of the insured vehicle while the driver is intoxicated or under the influence of alcohol.
    • Property Damage - Excludes the payment of expenses incurred on account of physical damage or loss to the insured vehicle arising out of the operation of the insured vehicle while the driver is intoxicated or under the influence of alcohol.
  3. Types of Insurance that may not be excluded:
    • Driver - Prohibits exclusion of benefits to a driver who operates the insured vehicle while intoxicated or under the influence of alcohol.
    • Passenger - Prohibits exclusion of benefits to passengers in the insured vehicle who sustain a loss because the driver of the insured vehicle operates the vehicle while intoxicated or under the influence of alcohol.
    • Third Party - Prohibits exclusion of benefits to third parties who sustain a loss because the driver of the insured vehicle operates the vehicle while intoxicated or under the influence of alcohol
    • Personal Injury - Prohibits exclusion of the payment of expenses incurred on account of injury to the person (e.g., medical services) arising out of the operation of the insured vehicle while the driver is intoxicated or under the influence of alcohol.
    • Property Damage - Prohibits exclusion of the payment of expenses incurred on account of physical damage or loss to the insured vehicle arising out of the operation of the insured vehicle while the driver is intoxicated or under the influence of alcohol.