Motor Trade Insurance & Cover Rules for Drunk Driving

​For anyone working in the motor trade, handling vehicles carries a great deal of responsibility. What happens if a named driver on your policy is found to be over the alcohol limit? Does drunk driving invalidate insurance?

Exclusions do exist for those who are found to be over the limit or to have taken prescription drugs that could affect their driving. However, the matter is nuanced and dependent on individual insurers and policies. This guide explains how drink-driving affects both standard car insurance and specialist motor trade cover, and what you can do if a conviction or incident occurs.

How Drunk Driving Affects Car Insurance and Motor Trade Cover

Car and motor trade insurance policies generally include exclusions for drivers under the influence of alcohol or drugs.

In your policy document, you will usually find a section titled “Significant exclusions and limitations”. This states that the cover does not apply to “injury resulting from you driving while under the influence of alcohol or drugs to a level which would be an offence in the country where the accident occurs.”

This means insurers will not pay beyond their legal liability under the Road Traffic Act. They must still settle valid third-party claims (e.g. damage or injury to others), but they can refuse to cover your own losses, such as damage to your vehicle or business stock. Worse still, once they have met their legal obligations, they are entitled to recover those costs from you.

In the motor trade, where trade-owned vehicles may be transported, tested, or held as stock for sale, that recovery could be substantial. A single drink-driving incident could therefore leave a business facing significant financial and reputational exposure.

Does Drunk Driving Automatically Invalidate Your Motor Trade Cover?

Not always. However, it will limit or remove parts of your protection. Insurers assess each case individually, but if a driver is convicted of being over the limit, most will:

• Restrict cover to the minimum required by law under the Road Traffic Act
• Exclude payments for your own losses or property damage
• Seek to reclaim costs after paying a third party
• Reassess your risk profile, leading to higher premiums or refusal of future cover

Even if your motor trade cover remains active, its value to you may be diminished once these exclusions apply.

What to Do After a Drink-Driving Conviction

1. Inform your insurer or broker immediately. Non-disclosure can invalidate the policy.
2. Check your policy wording for car insurance drunk driving exclusions and understand the limits of your cover.
3. Consider specialist support. A broker experienced in motor trade cover can connect you with insurers who accept higher-risk clients.
4. Improve your risk profile by maintaining a clean record and demonstrating responsible business practices.
   

Find the Right Support with Crowthorne

A drink-driving offence is serious, but it doesn’t have to end your career in the motor trade. At Crowthorne Insurance, we help traders understand their options, remain compliant, and find suitable protection even with a past conviction. As members of the British Insurance Brokers’ Association (BIBA), we provide clear, professional and impartial guidance with access to trusted insurers.

Protect your livelihood and your reputation. Contact Crowthorne today for confidential advice and a tailored review of your motor trade cover.

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