Denied car insurance because of drunk driving—what now?

Have you been caught driving under the influence? If so, this could have serious consequences for your auto insurance. Your insurer may refuse to cover any damages or may even cancel your policy immediately. You may also be denied new auto insurance. We’ll explain the consequences of driving under the influence on your auto insurance.

How Drinking and Driving Affects Your Car Insurance

Did you cause an accident after getting behind the wheel while under the influence of alcohol? Third-party liability insurance covers damages you cause to others. In the Netherlands, it is required by law to have third-party liability insurance, and the insurer is therefore obligated to pay out in the event of a claim. In some cases, however, auto insurers have an alcohol clause. An alcohol clause means that the insurer will compensate the other party for the damages, but you must then reimburse your insurer for those costs. Not every insurer has an alcohol clause, so it’s important to carefully review the policy terms and conditions when taking out car insurance.

With third-party liability insurance alone, damage to your own car is never covered. Do you have third-party liability plus limited comprehensive coverage or full coverage? Normally, damage to your own car is (partially) covered under these policies. However, if this damage occurs because you were driving under the influence, the insurer will not cover damage to your own car. Car repair costs can add up quickly, even if you’ve only hit a pole.

If you are pulled over with a blood alcohol concentration that is far too high, you may also be subject to a driver’s license suspension. You will then be prohibited from driving a motor vehicle for a certain period of time. Even after your driving suspension is lifted, you will have difficulty obtaining auto insurance. This is because a driving suspension results in your being registered with Stichting CIS. Stichting CIS maintains all important insurance data in its database. All affiliated insurers and authorized agents have access to this database and check it with every insurance application. Do you have a CIS registration? If so, very few mainstream insurance companies will be willing to insure you.

Insurer May Terminate Insurance Policy Due to Alcohol Abuse

If you drive while under the influence of alcohol and cause an accident, your insurer may cancel your auto insurance. Similarly, if you receive a driving suspension from the court, the insurer has valid grounds to cancel your policy. Once the policy is canceled, you are no longer covered in the event of damage or an accident. You will then need to insure your car with another company. However, this can be quite difficult as long as you still have a CIS record.