Nobody is flawless, and the majority of people will receive at least one traffic citation throughout their lifetimes. The fact of the matter is, however, that your driving record has the potential to drastically impact your life insurance premiums.
If you have an active life insurance policy and you receive a speeding citation, the infraction will not influence the premiums you pay for the coverage. On the other hand, if you are applying for a new policy or additional coverage through the insurance company, you can rest assured that the firm will take into consideration your driving record as one of the reasons.
How Do Life Insurance Companies Look At Your Driving Record?
Underwriters of life insurance tend to think quantitatively, in terms of numbers and percentages. They are attempting to calculate the likelihood that you will pass away at a younger age. This is something that they want to steer clear of at all costs because it means the company will have to pay out death benefits before it can earn a sizeable amount in premiums. When insurers assess that there is a greater potential for loss, they justify this practice by justifying their increased premium rates.
The following will be taken into consideration by life insurance providers when assessing your driving history:
DUI on Your Record
This aspect really ought to be evident. The most recent year for which statistics are available is 2017, and the National Highway Traffic Safety Administration (NHTSA) has reported that drunk driving accidents resulted in the deaths of 10,874 people in the United States. This equates to one death due to alcohol-related driving-related incidents occurring every 48 minutes. A recent DUI conviction or several DUI convictions will make it more difficult to obtain life insurance.
License Revocation or Suspension
This is a very significant danger. The logic behind this is that your driver’s license was most likely revoked for a very good reason. In certain circumstances, a driver’s license may be suspended for no other reason than the holder’s failure to pay a fine or the presence of a medical condition that has nothing to do with the holder’s previous driving history. If this is the case, our seasoned agent is able to work with you to try to lessen the effects that the suspension will have on your life.
Reckless Driving
Driving in a manner that demonstrates irreverence or indifference toward the safety and property of others is what is meant by this word. In some states, engaging in specific types of risky driving behaviors such as racing, swerving, passing on blind corners, and speeding at high rates of speed are deemed illegal. Your life insurance premiums will go up as a result of this type of violation because it adds a significant amount of risk to your profile.
Moving Violations
Moving offenses demonstrate a disdain for safety and increase your risk profile, which is a factor that life insurance companies consider. These infractions include going over the posted speed limit, texting while driving, running red lights or stop signs, following too closely, improper lane changes, and not wearing a seat belt.
Parking Tickets
The good news is that getting parking fines will not affect the premiums you pay for your life insurance. They are not taken into account by insurance firms.
What Is An MVR & How Does It Affect Your Life Insurance Rates?
Motor vehicle report is shortened to “MVR,” which is an abbreviation. It is a record of your driving history that is kept by the state and is provided to insurance companies when they make a request for it. As part of the application process for life insurance, you consent to this being done.
For the past five years, your motor vehicle record (MVR) must have no serious infractions for you to be eligible for the best rate class, which is called Preferred Plus. The most serious violations include driving under the influence of alcohol or drugs, driving recklessly, and having your license suspended or revoked.
An excessive number of moving offenses can also lead to a rise in the cost of your life insurance rates. The vast majority of insurance companies do not take into consideration a driver’s first one or two speeding tickets; however, if a driver has received more than two violations in the preceding three years, their rates will increase. Your application will most likely be denied if you have accumulated more than four infractions in the preceding three years.