My 20-year-old daughter has full coverage on her vehicle. She received a DUI and had an accident. Does her insurance company pay for her vehicle in this circumstance?

Yes, her car insurance company will pay even though she received a DUI.

If she was at fault for the accident, her liability coverage will pay for the damage and injuries she caused others, up to the liability limits on the policy. Her medical payments or personal injury protection (PIP) coverage would pay for her and her passengers' medical treatment. Collision coverage would pay for damage to her own vehicle, minus the policy's deductible.

Insurance does not pay for intentional and fraudulent acts. For instance, car insurance wouldn't pay if you set your car on fire just for the fun of it. But it does pay for damage resulting from an illegal act, as long as the crime was "accidental." Although driving under the influence of alcohol or drugs is illegal, the driver doesn't expect to get into a crash.

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However, even though the insurer will pay for the damage according to the policy, your daughter's car insurance worries aren't over. A DUI conviction is likely to drive up her car insurance rates, or it could even result in a non-renewal or cancellation of the policy, especially if she now has preferred rates.

If the policy isn't cancelled, her best bet is compare car insurance rates at renewal time. Rates vary widely among insurers in cases like these.

Most states require DUI offenders to get a form called an SR-22 or certificate of financial responsibility from their auto insurance companies. The form is then filed with the state Department of Motor Vehicles (DMV) to prove the driver carries liability insurance. For those who are required to have an SR-22 form, the insurance company must also notify the DMV if the auto insurance policy is cancelled for any reason. If the state where your daughter lives requires certificates of financial responsibility, she'll probably have to file proof of insurance for the next three to five years.

For more, see why your car insurance company has to pay for your illegal acts and how a DUI conviction affects your car insurance.