If you have ever applied or plan to apply for life insurance, you will notice that one of the questions on the application asks for your driver’s license number. The reason for this question is that life insurance companies will order a copy of your Motor Vehicle Report (MVR). You aren’t getting car insurance, so why do life insurance companies care about your driving record? Driving dangerously can lead to accidents, which can lead to death – so naturally life insurance companies care. They look for moving violations, reckless driving, and DUIs on your record.
We all know that our driving record affects are auto insurance rates, but many are surprised to find out your speeding ticket may affect your ability to get the best pricing on a life insurance policy. One moving violation won’t change the pricing on your policy, however multiple violations, a suspension of your license, or a DUI can have much greater consequences on the pricing of a life insurance policy.
Life Insurance and Moving Violations
If you’ve had any moving violations in the past three years it’s important that you work with an independent life insurance agency (such as ChooseTerm.com). Some life insurance companies won’t offer you their best rates if you have had more than one moving violation, while others will allow two moving violations and you can still qualify for the best rates. For example,Banner Life and ING allow up to two moving violations to qualify for the best rate. Transamerica on the other hand, will allow you to qualify for the best rates if you have had no more than one major moving violation, or three minor moving violations. Companies like Metlife, Prudential, Protective and SBLI allow only one moving violation to qualify for Preferred Plus pricing.
Life Insurance with Multiple Moving Violations
If you have had multiple violations – for example three or four moving violations over the last 3 years, Banner Life is the company you should apply with. With 3 violations you can still qualify for Standard Plus pricing, and Standard rates for up to 4 moving violations – as long as those moving violations are not reckless driving or a DUI and you have not had your license suspended revoked in the past 2 years.
If you have had a license suspended, or reckless driving you could see a “rated” policy – which means a higher rate, or a flat extra – an additional fee – for a certain amount of time.
Life Insurance with a DUI
Underwriting policies of life insurance companies vary greatly when it comes to a DUI on your record (within the past 10 years). If you’ve had one DUI, most companies will charge you expensive “flat extra” charges. Prudential however does not charge a flat extra, and offers the best life insurance rates with a history of a DUI.
If you have had more than two DUIs with the past 10 years, almost every single life insurance company will decline your application – except Prudential. This is why Prudential is the best choice when it comes to life insurance with a history of DUI or DWI.
Getting the Best Life Insurance Rates with Moving Violations and DUI History
If you do have a history of moving violations or a DUI you can save a significant amount of money by disclosing this information to us. This will allow us to shop your specific situation among all the top life insurance companies and find the company that will offer you the best rates based on your specific situation. The key is to work with an independent life insurance agent that understands the underwriting guidelines of life insurance companies and knows which company to recommend based on your driving history.
If you want to compare life insurance rates you can use our quote tool right on our home page. If you want a custom quote simply fill out the form below.