In this guide
Where the money can come from
- The drunk driver’s liability insurance, up to the per-person limit. See each state’s minimum in car accident laws by state.
- Your own coverage: no-fault (PIP) benefits in no-fault states, and uninsured or underinsured motorist coverage if your policy has it — see when the other driver is uninsured.
- The bar, restaurant or store that sold the alcohol, under the state’s dram shop law (below).
- The driver personally, for amounts above the insurance — collectable only if the driver has assets.
- Criminal restitution, if the criminal court orders it. It can cover some losses but doesn’t replace a civil claim.
Dram shop laws: when you can sue the bar, by state
| State | When the seller can be liable | Limits and deadlines |
|---|---|---|
| California | Generally not liable — the law treats drinking, not serving, as the cause. Exception: selling to an obviously intoxicated minor. (Bus. & Prof. Code §§ 25602(b)–(c), 25602.1) | General injury deadline: 2 years |
| Texas | If it was apparent the customer was obviously intoxicated to the point of being a clear danger, and the intoxication caused the damages. (Alco. Bev. Code § 2.02(b)) | General injury deadline: 2 years |
| Florida | Only for willfully and unlawfully selling to someone under the legal drinking age, or knowingly serving someone habitually addicted to alcohol. (Stat. § 768.125) | General injury deadline: 2 years |
| New York | Anyone who caused or contributed to the intoxication by unlawfully selling to or helping procure alcohol for the person. (Gen. Oblig. Law § 11-101) | Actual and exemplary (punitive) damages. |
| Illinois | A licensed seller whose alcohol caused the intoxication — no proof of fault in serving is required by the statute’s terms. (235 ILCS 5/6-21) | Damages are capped (from $45,000 per person for injury and $55,000 for loss of support, indexed every year since 1999), and the suit must be filed within 1 year. |
| Ohio | For injuries away from the premises, only if the seller knowingly sold to a noticeably intoxicated person (or in another sale the liquor law forbids) and the intoxication caused the injury. (R.C. 4399.18) | General injury deadline: 2 years |
| Georgia | Only for knowingly serving someone underage or noticeably intoxicated, knowing they will soon be driving, when the service is the proximate cause. (O.C.G.A. § 51-1-40(b)) | General injury deadline: 2 years |
| North Carolina | For negligently selling to an underage person who then drove while impaired and caused the injury. (G.S. 18B-121) | General injury deadline: 3 years |
| Michigan | For selling to a minor or a visibly intoxicated person, when that sale was a proximate cause of the injury. (MCL 436.1801) | Sue within 2 years; give all defendants written notice within 120 days of hiring a lawyer; the drunk person must be named in the suit and kept in it. |
Pennsylvania isn’t listed: we couldn’t verify its Liquor Code provision against an official copy. These statutes cover businesses that sell or serve alcohol; whether a private party host can be liable is a separate question in each state. Some statutes also bar the drunk customer from suing over their own injuries.
Proving a dram shop claim usually means proving what the customer looked like when served — receipts and bar tabs, the number of drinks, witnesses, and surveillance video. Ask for the video and receipts to be kept right away.
Punitive damages and taxes
Punitive damages punish especially reckless conduct rather than compensate for a loss, and whether a drunk driver can be made to pay them depends on state law. New York’s dram shop statute expressly allows “exemplary” damages against the seller. Punitive damages are taxable: federal law excludes compensation for a physical injury from income, “other than punitive damages” (26 U.S.C. § 104(a)(2)). The settlement tax guide shows what that can mean in dollars.
Deadlines to sue the driver
| State | Deadline to sue for injury |
|---|---|
| California | 2 years (Code Civ. Proc. § 335.1) |
| Texas | 2 years (Civ. Prac. & Rem. Code § 16.003) |
| Florida | 2 years (Stat. § 95.11(5)(a)) |
| New York | 3 years (CPLR 214(5)) |
| Illinois | 2 years (735 ILCS 5/13-202) |
| Ohio | 2 years (R.C. 2305.10(A)) |
| Georgia | 2 years (O.C.G.A. § 9-3-33) |
| North Carolina | 3 years (G.S. 1-52(16)) |
| Michigan | 3 years (MCL 600.5805(2)) |
| Pennsylvania | 2 years (42 Pa.C.S. § 5524(2)) |
The criminal case generally doesn’t pause this clock. For a death, see the wrongful death guide, and for every deadline in your state, the claim deadline calculator.
What to do
- Get the police report and the case number of any DUI charge.
- Find out where the driver was drinking — the police report, the criminal case and witnesses often show it.
- Ask the bar or store to keep receipts and video, in writing.
- Check every policy: yours, the driver’s and any business involved.
- Note the shorter deadlines for dram shop claims in the table above.
Frequently asked questions
Who pays if a drunk driver hits you?
First the drunk driver’s liability insurance, up to its limit. If that isn’t enough, other sources can include your own underinsured motorist coverage, the driver personally, and in many states the bar or store that sold the driver alcohol under the state’s dram shop law.
Can you sue a bar for a drunk driving accident?
In most of the largest states, yes, but only under specific conditions. Texas requires that the customer was obviously intoxicated to the point of being a clear danger; Ohio and Michigan require a sale to a noticeably or visibly intoxicated person; Florida and North Carolina mostly limit claims to sales to underage drinkers; and California generally doesn’t allow them except for sales to an obviously intoxicated minor.
Can you get punitive damages from a drunk driver?
Possibly. Punitive damages punish especially reckless conduct, and whether they’re available depends on state law; New York’s dram shop statute, for one, expressly allows exemplary damages. Punitive damages are taxable income under federal law, unlike compensation for a physical injury.
Do I need the criminal case to finish before filing a civil claim?
No. The civil claim is separate and has its own deadline, which generally keeps running while the criminal case goes on. A conviction can help prove fault, and a criminal court may order restitution, but neither replaces a civil claim.
How long do I have to sue a bar?
Sometimes less than for the driver. Illinois requires a dram shop suit within 1 year, and Michigan requires written notice to the defendants within 120 days of hiring a lawyer. Elsewhere the general injury deadline usually applies.
Reviewed by
Morgan Hale, Editor. Writes about the financial side of injury claims — fees, liens, timelines and state rules — and checks every page against its sources before it’s published. Not a lawyer; “Morgan Hale” is a pen name. Editorial policy · How we calculate
Sources
- Cal. Bus. & Prof. Code § 25602 — No civil liability for furnishing alcohol to an intoxicated person (FindLaw (California Business and Professions Code))
- Cal. Bus. & Prof. Code § 25602.1 — Liability for selling to an obviously intoxicated minor (FindLaw (California Business and Professions Code))
- Tex. Alco. Bev. Code § 2.02 — Causes of action against providers of alcoholic beverages (FindLaw (Texas Alcoholic Beverage Code))
- Fla. Stat. § 768.125 — Liability for injury or damage resulting from intoxication (The Florida Senate)
- N.Y. General Obligations Law § 11-101 — Compensation for injury caused by the illegal sale of intoxicating liquor (New York State Senate)
- 235 ILCS 5/6-21 — Dram Shop Act: liability, indexed limits, one-year deadline (FindLaw (Illinois Compiled Statutes))
- Ohio R.C. 4399.18 — Liability of a liquor permit holder for injuries caused by an intoxicated person (FindLaw (Ohio Revised Code))
- O.C.G.A. § 51-1-40 — Liability of a person who furnishes alcohol: underage or noticeably intoxicated, soon driving (FindLaw (Georgia Code))
- N.C. Gen. Stat. § 18B-121 — Claim for relief against a permittee for a negligent sale to an underage person (FindLaw (North Carolina General Statutes))
- MCL 436.1801 — Dram shop action: minors and visibly intoxicated persons; 2-year deadline; 120-day notice; named defendant (FindLaw (Michigan Compiled Laws))
- 26 U.S.C. § 104 — Compensation for injuries or sickness (Cornell Legal Information Institute)
- IRS Publication 4345, Settlements — Taxability (Internal Revenue Service)
- California Code of Civil Procedure § 335.1 — Two years for injury to, or death of, an individual (FindLaw (California Code of Civil Procedure))
- Texas Civil Practice and Remedies Code § 16.003 — Two years for personal injury, property damage and wrongful death (FindLaw (Texas Civil Practice and Remedies Code))
- Florida Statutes § 95.11 (2025) — Limitations other than for the recovery of real property (The Florida Senate)
- New York CPLR § 214 — Three years for personal injury and injury to property (New York State Senate)
- 735 ILCS 5/13-202 — Two years for personal injury (FindLaw (Illinois Code of Civil Procedure))
- Ohio Revised Code § 2305.10(A) — Two years for bodily injury or injuring personal property (FindLaw (Ohio Revised Code))
- O.C.G.A. § 9-3-33 — Two years for injuries to the person (four for loss of consortium) (FindLaw (Official Code of Georgia))
- N.C. Gen. Stat. § 1-52(4), (16) — Three years for personal injury and property damage (FindLaw (North Carolina General Statutes))
- Michigan Compiled Laws § 600.5805(2) — Three years for death or injury to a person or property (FindLaw (Michigan Revised Judicature Act))
- 42 Pa.C.S. § 5524 — Two years for personal injury, wrongful death and injury to personal property (FindLaw (Pennsylvania Judicial Code))
Not legal or financial advice. InjuryMath is not a law firm and does not sell or broker funding. This page gives general information based on the sources listed; your contracts and your state’s law control. For advice about your situation, talk to a licensed attorney in your state.