Ask a Lawyer - Archive

I was hit by a drunk driver and his insurance company has admitted fault. However, the insurance company has said that they are not liable for punitive damages; is this statement correct?

Hello, and thank you for your participation in this forum. Please note that I am a licensed Texas attorney, and give advice for a Texas legal standpoint. You should always seek the advice of local counsel.

Many states in the Union prohibit the recovery of punitive or exemplary damages from an at-fault driver's auto insurance policy. Such state's reason so because punitive damages are meant to punish the wrongdoer and deter future like actions. By allowing the recovery of those punitive damages from an insurance policy, society, and not the wrongdoer, would bear that punishment.

Not so in Texas, however. Recovering punitive damages in Texas is not forbidden as a matter of public policy. In Texas, unless such coverage is specifically excluded by the terms of the insurance policy, punitive damages are likely recoverable from that policy. It's probably a good idea to consult an attorney so that he or she can advise you during this matter.