Life Insurance And Your Driving Record

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.

If you have a faulty driving record, life insurance can be harder to obtain, and more expensive, too.

We have dealt with many clients who have had less than par driving records, and even a few with pretty hefty red flags.

If your driving record is kind of nasty, here’s what you’ll need to know in order to buy life insurance.

Life Insurance With A 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:

• DUI
• Reckless Driving
• Multiple Moving Violations
• Hit And Run
• Racing
• 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.

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:

1. 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
2. Report Your Record — tell your agent up front about your driving record, and have every detail you can ready
3. Lower Your Expectations — don’t expect your agent to perform miracles, especially if your record is badly bruised
4. 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.