Many individuals who apply for a life insurance plan are initially puzzled by the fact that the insurance company asks them to provide their driver’s license number.
Most people become a bit confused because they don’t understand what their driver’s license identification has to do with a life insurance policy.
Life Insurance and Driving History
But companies that issue life insurance actually do monitor a prospective policy holder’s driving record because their history of driving, including accidents, DUI convictions, and moving violations, can directly affect an individual’s life expectancy and their risk of dying, all factors which influence the rate that an insurance company charges for a life insurance plan.
By having an applicant’s driver’s license number, the insurance company has the information it needs to request a copy of the applicant’s Motor Vehicle Report or MVR from the state which has issued their driver’s license, which informs them about such infractions as multiple moving violations.
Moving Violations and Life Insurance
Life insurance companies are not willing to offer their lowest rates and best policy values to individuals with a driving history that includes receiving tickets for multiple moving violations because this kind of behavior directly affects the risk that an insurance company takes in insuring the life of the driver.
Some insurance companies such as Prudential and Metlife may forgive one moving violation that has occurred within the past 36 months, but insurance applicants with more than one moving violation on their driving record are immediately identified as being much poorer risks for the insurance company.
This causes insurers to require higher rates in order to take out a life insurance policy.
There are a few insurers, such as ING and Banner Life, willing to offer good rates even if the MRV indicates two moving violations within the past three years, so it is worthwhile spending some time comparison shopping to find insurance vendors willing to overlook a minimal number of offenses on a driving record.
Rated Policies Because of Driving History
Drivers who have been convicted of driving recklessly or who have had their driver’s license suspended due to their driving behavior can be offered what’s called a “rated” policy by their life insurance vendor.
This means simply that either a more expensive premium is required or the insurance company requires an extra fee in order to activate the policy. This additional fee stays in place until the person insured demonstrates safer driving behavior over time.
Serious Consequences for DUI
Life insurance providers take a very dim view of offering life insurance policies to any individual who has at least two or more Driving Under the Influence convictions on their driving record. Such applicants can be refused a policy outright, even if they are willing to pay higher premiums.
The vast majority of carriers are going to view any applicant with a DUI in the past several years as too much risk. Typically, as soon as you answer yes to have a DUI, your application is going to be put in the rejection pile.
Thankfully, not every company is like this. There are a handful of companies which are willing to take on the risk of applicants with DUIs.
Only Prudential Insurance will consider a life insurance applicant with two or more DUI or DWI convictions on their driving record within the past decade – at a higher premium than normal due to the increased risk.
Full Disclosure Important
It’s important when an individual is shopping for a life insurance policy that they are aware of how their driving history can affect the premium rates they pay. It’s important to be fully truthful when questioned about any details regarding moving violations, DUI convictions or other reckless driving behavior.
Any attempt to hide information or provide false information when applying for a life insurance policy could ultimately make the policy void.
High-Risk Life Insurance and Driving History
Every carrier has a different tolerance for risk when it comes to coverage.
If you’ve got a DUI or two on your driving record, you’re automatically considered a high-risk applicant. Your driving record is not the only factor they are going to look at, dozens of other factors. You already have one strike against you, you need to ensure the rest of your application is squeaky clean.
Your driving record may not be spotless, but you can take the time to improve everything else.
Aside from your driving, the company will review your health, your lifestyle choices, your job, your hobbies, and much.
Let’s say you have a DUI in the past three years, there is a chance you’ll be accepted, but if you have any severe health problems, like diabetes you’re chances are drastically reduced.
Taking some time to get in the best shape possible before you apply could help you get approved for a cheaper plan.
It can be very helpful for people whose driving record is not spotless to work with an independent insurance agent who already knows which insurance vendors tend to be more lenient when it comes to having their rates influenced by an applicant’s driving history.
It’s important to know where to find insurance companies who won’t penalize drivers unfairly or excessively for life insurance rates if their driving record isn’t completely blemish-free.
Using an Independent Agency for Applicants with a DUI/DWI
There are more than 7,000 insurance companies which sell life insurance. With all those options, you could easily spend days and days trying to find a company with a plan you can afford or will approve you.
You don’t have to do all of this work by yourself. We don’t want you to.
We tell every person we talk to, use an independent agent. Even if you don’t use us, find an independent brokerage.
We aren’t just a call center which will get all your information and then spam you with emails and phone calls.
Let’s say you’re an applicant with a not-so-perfect driving record, and you give us a call. We are going to ask you a handful of questions. Nothing intense, just some basic info.
Name, age, zip code, tobacco usage, and any high-risk factors. After this, we are going to run all of your info through our algorithms and we are going to deliver you the best possible rates.
We will email you a list of the best possible insurance options. You can browse through the options and compare all of them. This lets you find a policy for the right amount of coverage at the bests possible.
Don’t let a DUI prevent you from getting a plan you can afford. We would love to help you qualify for an affordable policy.
Contact us at 888-552-6159 for a custom quote based on your situation, or compare rates using the quote form on this page.