Drunk Driver's Insurance: What Happens When the At-Fault Driver Was Intoxicated

Last Updated: April 4, 2026

A drunk driver’s liability insurance still pays for damages they cause, but a DUI conviction can also support punitive damages claims in Illinois—you may recover not just compensatory damages but additional punishment money. The drunk driver remains liable regardless of criminal consequences.

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One of the most common questions after a drunk driving accident is whether the intoxicated driver’s auto insurance will actually pay for your injuries. The short answer is yes — in most cases, the drunk driver’s liability insurance still covers your claim even though the driver was breaking the law.

Auto Insurance Covers Drunk Driving Accidents

Illinois auto insurance policies are contracts between the driver and the insurance company. While driving drunk violates the law, it does not void the driver’s insurance policy. The liability portion of the policy exists specifically to compensate injured third parties — people like you who were harmed by the policyholder’s negligent driving. An insurance company cannot refuse to pay your valid claim simply because their insured was intoxicated at the time of the accident.

This is a matter of public policy. Illinois requires all drivers to carry minimum liability coverage ($25,000 per person/$50,000 per accident/$20,000 property damage under 625 ILCS 5/7-317) precisely to ensure that accident victims have a source of recovery. Allowing insurers to deny claims based on DUI would undermine this entire system and leave innocent victims without compensation.

The Insurance Company’s Response to a DUI Claim

When a drunk driving claim is filed, the insurance company will still investigate and may try to minimize the payout. Common tactics include arguing about the severity of your injuries, disputing medical necessity, claiming pre-existing conditions, or acting in bad faith. However, they cannot deny the claim outright because their insured was drunk. In fact, the DUI makes the liability determination relatively straightforward — there is little room to argue that the drunk driver was not at fault.

What If the Drunk Driver Was Uninsured?

Unfortunately, drunk drivers are more likely than average to be uninsured or underinsured. Repeat DUI offenders often have suspended licenses and lapsed insurance. If the drunk driver had no insurance, your uninsured motorist (UM) coverage becomes critical. Illinois does not require UM coverage, but most policies include it unless the driver specifically rejected it in writing.

When the Drunk Driver’s Policy Limits Aren’t Enough

Many drunk drivers carry only the state minimum coverage — $25,000 per person. For serious injuries involving surgery, hospitalization, or long-term rehabilitation, this amount is grossly insufficient. In these situations, several options may increase your total recovery. Your own underinsured motorist (UIM) coverage kicks in when the at-fault driver’s limits are exhausted. A dram shop claim against the bar that over-served the driver provides access to the establishment’s commercial insurance. In some cases, the drunk driver may have personal assets that can be pursued through a judgment.

The Insurer’s Rights Against Their Own Policyholder

While the insurance company must pay your claim, they may exercise their right of subrogation against their own policyholder — the drunk driver. This means after paying your claim, the insurer can seek reimbursement from the drunk driver personally. The insurer may also raise the driver’s premiums dramatically or cancel the policy altogether after the claim is resolved. None of this affects your right to be compensated.

If you’ve been injured by a drunk driver and have questions about insurance coverage, the attorneys at Parker & Parker can evaluate all available insurance sources and help you recover the maximum compensation.

Injured? Get a Free Case Review.

The personal injury attorneys at Parker & Parker have been fighting for accident victims in Peoria and across Central Illinois for over 25 years. Call (309) 674-0044 or contact us online for a free, no-obligation consultation.

Frequently Asked Questions

Does a drunk driver’s insurance have to pay my claim?

Yes. Auto liability insurance covers accidents caused by the policyholder’s negligence, including drunk driving. The insurance company cannot deny your claim because their insured was intoxicated. The policy exists to protect injured third parties like you.

What if the drunk driver only has minimum insurance?

Illinois minimum coverage is just $25,000 per person, which is often insufficient for serious injuries. Your underinsured motorist coverage, dram shop claims against the serving establishment, and the driver’s personal assets are additional sources of recovery.

Are drunk drivers more likely to be uninsured?

Yes, statistically. Repeat DUI offenders often have suspended licenses and lapsed insurance. If the drunk driver was uninsured, your own uninsured motorist (UM) coverage is the primary source of recovery, along with any dram shop claims against the bar.

Can a drunk driver’s insurance company settle for less because of the DUI?

No. If anything, the DUI strengthens your claim by making liability clear. Insurance companies cannot reduce settlements because their policyholder was intoxicated. They must evaluate the claim based on the severity of your injuries and damages.

Dealing with injuries after a car crash can feel overwhelming. Our personal injury lawyers who handle car accident cases can guide you through every step of the legal process.

Need a lawyer? This article is part of our Peoria Car Accident Lawyer practice area. Call Parker & Parker at 309-673-0069 for a free consultation.

Drunk Driver’s Insurance: What Happens When the At-Fault Driver Was Intoxicated