How Your Driving Record Could Affect Your Life Insurance
Your driving record could affect your life insurance because insurance companies check your driving record. If you have a poor driving record (traffic violations, accidents for which you were at fault, or DUI charges) and are applying for life insurance, you might either have difficulty getting approved for a policy, or you'll be paying higher rates. Scroll down to learn more and compare quotes to see how your driving record could affect your life insurance premiums.
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UPDATED: Oct 28, 2020
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While you already know your permanent driving record directly affects your car insurance rates, you may already realize how your driving record could affect your life insurance. Below, you will find what affects your driving record and a couple of reasons to clean up your driving so that your life insurance can benefit.
Whether you’re shopping for a life insurance policy or you already have coverage in place, you should know that a lack of good standing with the DMV (Department of Motor Vehicles) could have consequences. We will not be reviewing car insurance for bad driving record.
We have a life insurance FAQ to help answer any questions you may have. Additionally, we will not go into details about bad driver quotes below. Before continuing to read, you can type your ZIP code into the free quote box above and compare life insurance rates.
Reasons to Clean up Your Driving for the Sake of Your Life Insurance
1. A Bad Driving Record Could Cost You More Money
Insurance companies check your driving record. Simply put, the insurance companies get driving records from the state.
If you have a poor driving record (traffic violations, accidents for which you were at fault, or DUI charges) and are applying for life insurance, you might either have difficulty getting approved for a policy or you’ll probably pay a higher premium than you would with a clean record.
A bad driving record could be enough to bump you from a preferred rating class to a less ideal one (browse our site for articles on bad driving record auto insurance). Life insurance companies rate you according to a number of different health and lifestyle factors. If you’ve been a bad driver, they’ll consider you a higher risk (you may want to look into best insurance for bad record). The end result: you’ll pay more.
2. Your Policy Might Not Provide Coverage if You Were at Fault of an Accident
Provided you were honest on your life insurance application, didn’t hide an existing drinking problem or vehicle violations, and have had your policy for at least two years, most companies will pay a death benefit to your beneficiaries regardless of your cause of death.
There have been some instances, however, where insurance companies have fought claims in court based on the premise that when an insured person’s death is caused by his voluntary use of a substance, it’s a foreseeable result of driving under the influence rather than an accident.
Could that same logic be applied to driving distracted, like texting or talking on a phone while driving?
According to a CDC survey in 2011, “31% of U.S. drivers ages 18-64 reported that they had read or sent text messages or email messages while driving at least once within the 30 days before taking the survey.” The agency’s statistics also show that from 2011 to 2012, the number of people injured in crashes caused by distracted driving increased by 9%.
It would make sense that insurance companies consider this as they look to minimize risk and preserve their bottom lines. That gives you one more good reason not to text, respond to emails, and dial your friends while driving.
Read and Ask Questions
All insurance companies are different, so read your policy carefully to see if there are any exclusions because there are things to consider when comparing life insurance companies. If the language is unclear, ask your insurance agent for clarification.
And remember, even if you do have an insurance record that’s not entirely spotless, you could benefit from looking into term life insurance. With more affordable premiums than permanent life insurance, term life can give you and your family peace of mind without breaking the bank.
Looking for affordable life insurance? Get a term life insurance quote quickly and conveniently online and talk with a trusted insurance professional about your term life options. You can get life insurance quotes from reputable life insurance companies near you simply by entering your ZIP code below.