If you’re anything like me, a heavy foot on the accelerator is more often the case than right lane driving on a Sunday morning. Unfortunately, this could have consequences.
Life insurance and your driving record can end up costing you a lot more in premium.
We have dealt with many clients who have had less than par driving records, and even a few with pretty hefty red flags. So whether you need a small amount of coverage or a million dollar life insurance policy, we have options for you.
If your driving record is kind of nasty, here’s what you’ll need to know in order to buy life insurance.
Life Insurance And Your Driving Record
There are several things an insurance company will consider when you’re applying for life insurance, and your driving record history is most definitely on the list. It’s not uncommon for us to hear (from good drivers and bad):
My driving record affects my life insurance?
Yes! Now before you get anxious, if you have one little ticket from years ago, there’s no need to fret. We’re talking about a driving record a little more tainted than a small violation. Here are some examples:
- Reckless Driving
- Multiple Moving Violations
- Hit And Run
- Road Rage
- Vehicular Homicide
You can see from the list, things such as parking violations and other minor tickets are not of concern. A $25 ticket you got for parking illegally while running in to grab your Starbucks coffee won’t get you disqualified for life insurance.
So what does your driving record have to do with life insurance anyway? Someone who exceeds the speed limit on a consistent basis, drives under the influence, or has multiple offenses in a short period of time is more likely to have a car accident, which could be fatal. The insurance company is required to pay out if you die, whether it’s your fault or someone else’s.
The higher risk you are, you’ll either pay a higher premium or you won’t get accepted at all.
If you have one of the more severe driving infractions on your record, you may still be able to qualify for traditional term life insurance. If you can, you can expect higher rates, or even a flat fee. A flat fee is an additional amount over and above the premium you’ll be required to pay for a certain time period, like 5 years or ten years. But sometimes, it’s not an viable option for you.
Options For Life Insurance With Driving Record Flaws
Are you one of the ones with a pretty shaky record? Life insurance can still be obtained and maybe even with pretty good rates.
A life insurance carrier is going to want to see how long ago your incidents occurred, and what type. The more sever they were, the farther back they’ll need to be for a good consideration. The further back in the past it happened, the better. Whether or not you were required community service or driving classes, and if you completed them, will be a factor, also.
But if your infractions have happened more recently, what can you do?
There are certain types of no exam life insurance and guaranteed issue life insurance policies which you may be eligible for. What these policies do require is basic information, a few health questions, and not much else. Your premium will be a little higher than a standard issue policy where you have to complete the full medical underwriting, but it may keep you from being declined. There are even companies who offer life insurance while pregnant or life insurance for young adults, so don’t let anything stop you from getting the coverage you deserve.
Don’t try to apply for a life insurance policy without mentioning your driving history up front; your drivers license number is required on every application.
What do you do if you have a suspension or even a revocation? There’s a good chance most companies will frown upon this. There are some instances where you can get an acute suspension for missing a payment or because you’re going through a car insurance lapse, but most of the time it’s because of something traffic or safety related.
How To Get Approved For Life Insurance
Here are some quick easy steps to make sure you get the best possible rates for life insurance with a driving record:
- Use An Independent Agent — not all carriers view driving records the same, and they’ll be able to search for the right one for you
- Report Your Record — tell your agent up front about your driving record, and have every detail you can ready
- Lower Your Expectations — don’t expect your agent to perform miracles, especially if your record is badly bruised
- Have Patience — you may be asked a lot of questions about your record, and required to supply proof of every incident
If you need special assistance obtaining your life insurance, we’ve dealt with plenty of clients who have had driving records which were tattered.
We can help you, too.
Additionally, there are several other things that you can do to get the lowest insurance rates possible. Aside from looking at your driving record, the insurance company is going to account for your overall health as well. Before the accept your application, they are going to require that you take a medical exam.
If you want to save money on your life insurance, you’ll need to improve your health through a healthy diet and getting regular exercise. Both of these are going to work wonders on your health as well as your life insurance rates.
If you want to get the most affordable rates possible, you’ll need to cut out any tobacco that you currently use. Smokers pay an average of twice as much for their life insurance versus what a non-smoker is going to pay. In some cases, you could pay three times as much. Cutting out the cigarettes could save you thousands of dollars on your life insurance plan.
If you have any questions about life insurance or about the different options available to you, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best possible coverage for you and your family. Don’t wait any longer to get a quality and affordable policy to protect your loved ones.