Impaired son -- does dad's insurance still apply?

Question:

If son drives drunk with dad's permission (dad owns car) does dad's insurance gets voided?

Answer:

Not voided - it's a little tricky/complex, but if son is G licensed and driving impaired with dad's permission, insurer still has duty to defend and indemnify both up to the policy limits.

If son is G1 or G2 licensed and has alcohol in blood stream and driving with dad's permission, this is considered a breach of the insurance policy and the insurance company would  only have to indemnify son up to the statutory minimum of $200,000 - but for dad, if he knew son was going to drive with alcohol in his bloodstream then he gets the same indemnification.

If dad didn't know, then he is possibly covered up to the policy limits. In other words, a breach of a policy condition reduces the policy limits but the insurer is still on the hook.

The policy would be voided in other circumstances (ie, material misrepresentation on the application for insurance). 

The result is counterintuitive - a drunk driver gets full defence and indemnification if G licensed and something less if not - but, oddly, that's the current state of the law.



(Thanks to Gina Nardella for this)
James Morton
1100-5255 Yonge Street
Toronto, Ontario
M2N 6P4

416 225 2777