You probably already know that your health is a factor in determining whether or not you will be approved for life insurance and that it affects how much you pay.  What you may not realize is that your family’s health history, your occupation and hobbies, and your driving record also may have an effect.  Yes, your driving record.  You may be thinking “Did I accidentally open a car insurance article?”  Not only do your driving habits determine how much you pay for car insurance, but life insurers take this record into consideration as well.

Think about this, if you regularly speed 20 mph over the limit your chances of dying if you get into a car accident are higher than if you drove the posted speed.  At higher speeds you have to react more quickly and have less margin for error, making accidents more likely.  The difference between a car crash at 55 mph and one at 65 mph is a 24% increase in the chances that the accident will be fatal.(1)  Life insurance companies are all about life expectancy.  They take financial risks when insuring you, and if your lifestyle raises the odds of you dying sooner, then they will raise your premiums or flat-out decline you.

The type of violation, how many you have had, and the severity of the violation will all be taken into account.  Your driving record will also be considered alongside your other health and lifestyle habits too.  You could only have one speeding ticket from 5 years ago, but if you also skydive on weekends they might consider you to be a thrill-seeker which would make them very nervous to approve you for life insurance.

Let’s look at a couple real-life examples (names have been changed or removed.)

Example 1:

Jane Doe is 30 years old and applying for a $500,000 term life policy.  Jane quit smoking 6 years ago and also has a DUI charge from 5 years ago and two speeding tickets from 2 years ago.  She often travels outside the country for business and pleasure.  Her case was sent to multiple carriers to see what they could offer her.  Their responses varied.

Carrier 1 – Decline due to driving history.

Carrier 2 – Non Smoker Plus at best dependent upon full review.

Carrier 3 – We could consider rated Table F.

Carrier 4 – Tentative Standard with a $5 flat extra for 3 years due to driving record.

Example 2:

John Doe is 43 years old and applying for a $750,000 term life policy.  John has had 3 DUIs, one in 1987 and two in 1989.  He currently drinks about 3 alcoholic beverages per day.  His case was sent to multiple carriers to see what they could offer.  Their responses varied.

Carrier 1 – Decline due to DUI history and current drinking status.

Carrier 2 – Tentative Standard subject to Alcohol Questionnaire.

Carrier 3 – DUIs distant past but Standard due to continued use of alcohol.  Maybe would consider Preferred pending medical records and normal liver enzyme elevations.

Carrier 4 – Would consider Standard Plus pending no other moving violations since 1989, that applicant has never been treated for alcohol abuse, and is gainfully employed and maintaining stable lifestyle.

As you can see, insurance carriers can view the same application very differently.  The health classifications, or Risk Class, they each offered varied significantly.  It may look a little overwhelming, but Quotacy is here to help.  We take your application and we’ll determine which carriers will offer you the best coverage and explain your options in an easy-to-understand way.

We have years of experience behind us and work with multiple life insurance companies.  We want you to get the right coverage the first time so you have peace of mind knowing your loved ones will be taken care of if you die pre-maturely.  Term life insurance is affordable income replacement and you can get a quote instantly without giving up any person contact information.  What are you waiting for?  Get a term life insurance quote today.


(1) Freakonomics: Life and Death in the Fast Lane


Related Posts:

Your Driving Record and Life Insurance

9 Reasons Why Life Insurance Companies May Raise Your Costs

How Does a Criminal Record Affect Buying Life Insurance?

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