They do, they'll just come after you for the money and will not cover your costs since you acted reckless.
Where I live this is the minimum you MUST insure yourself for and they pay out no matter what (to the other party). If you acted in bad faith they will come for your money. If it's an accident or out of your control they pay the damages you caused for you and you are fine. Since everyone is insured by law what usually happens is the companies involved all pay out and then afterwards figure out among themselves if and from whom they can collect.
Similar here: auto insurers lobbied to exclude coverage for damage to your vehicle if you were under the influence or alcohol or drugs.
I guess people may ethically agree to that but did premiums go down? Of course not.
A very profitable move for the insurance companies to provide less insurance without handing over the savings.
And it even applies to “anyone you let drive your vehicle” so everyone is supposed to be a drug recognition expert, which is even controversial amongst those that are supposed to be the “experts”.
