How Your Driving Record Affects Your Term Life Insurance Rates

by Jeff Rose on June 22, 2017 · 0 comments

When you apply for life insurance coverage, your insurance agent should be very inquisitive.

life insurance and your driving recordThey will want to ask you by your overall health, if you smoke and your family history.

One question that gets asked that many people that are applying for life insurance forget that will be asked is “How is your driving record?”.

Uh-oh…..

If you drive like a Nascar driver and have been ticket for it, it could cost you.

Not only does your car insurance go up, but also so does your life insurance! Life insurance is one of the most important purchases that you’ll ever make, and your driving record could have a huge impact on that.

Regardless of your lead foot, it’s important that you get a quality life insurance policy, and we can help you get that protection at an affordable price.

Yes, Your Driving Record Affects Life Insurance Rates

This may come as a shock to many, who may not believe it, but it is true. Life insurance rates and your driving record do have one thing in common: Death!

That might seem a tad over-dramatic to some, but death is certainly something to worry about on the road. When a driver does not care about the harm that dangerous driving causes, life insurance companies begin to realize they may not have a lot of time on this earth.

When you drive with only the end point and some fun in mind, that is why your driving record affects life insurance rates. This may seem unfair to some, but it is a real worry for insurance companies. Just like a disease or other serious health condition, bad driving raises your chance of death. When you have a higher likelihood of death, your life insurance rates go up. Just like if you were completely healthy and took steps to ensure you stayed alive and well for years to come, your life insurance rates would drop.

Your driving record affects life insurance acceptability, too. If you are a driver with a problematic driving history, they may consider you too much of a risk to insure. A person with a family they want to protect, even after they have entered the grave, will see this as a problem. They want to get good rates, a good company, and money for their family if they meet their demise.

Recent Driving History

A good thing for many drivers out there is that the top life insurance companies will look at your recent history, not everything. Life insurance rates and your driving record are a big worry, but so is whether or not you will get life insurance to begin with.

Any person out there who thinks they are safe to get life insurance simply because they are healthy needs to look into everything.

How Much Does Your Life Insurance Go Up Because Of Speeding Tickets?

Recently, I had a gentleman that was applying for a 20 year term life insurance policy.  I asked the usual questions and everything seemed to be on track for a Preferred Best rating.  I then asked about his driving record.  There was a pause.  Followed by a “Well, let me tell you about that…..”

The guy hadn’t had a speeding ticket in over a decade but happened to get his first one about 6 months ago.  Now one ticket wouldn’t have been an issue.  But he got not just one but two more tickets…..in the same week!

Having 3 speeding tickets on your driving record in one week does not do well for your life insurance premium. Especially when they occurred in the past 6 months.

His premium which would have been $1490 per year, ballooned to $1,913 per year. As you can see, your driving record does matter.

More than likely, you haven’t gotten three speeding tickets in one week. That’s a rare case that I may never run into again, but if you do have a couple of tickets in the last six months, then you could be facing higher premiums.

As long as your driving record isn’t filled with speeding tickets and accidents, then it isn’t going to impact your premiums too drastically. You’ll still be able to get affordable life insurance coverage, even if you’ve been caught going slightly higher than the speed limit.

Getting Affordable Life Insurance Coverage

There are a couple of ways that you can trim down your life insurance premiums. Making a few simple changes to how you live could help you save thousands of dollars on your life insurance coverage every year.

The first thing that you should do is slow down on your drive home from work. We’ve already shown that speeding tickets can cause your premiums to go up, which means that it’s important that you’re driving as safely as possible. Taking a little longer to get to work in the morning, could help you save money on your life insurance coverage.

The next thing that you should is cut out any tobacco that you currently use. If you’re listed as a tobacco user on your application, then you should expect to pay much higher premiums. In fact, smokers are going to pay twice as much for life insurance versus what a non-smoker is going to pay for the same sized policy. Kicking that bad habit can save you thousands of dollars every year. If you’ve needed extra motivation, there it is.

Another way to save money is by improving your overall health. Before the insurance company approves your application, they are going to require that you take a medical exam, and the results of the exam are going to play a major role in how much you pay every month. If you want to save money, you’ll need to get better results, it’s as simple as that.

Two of the best changes that you can make to get better results is to start going to the gym and cutting out the bad foods. Both of these are going to help you lose weight, lower your blood pressure, reduce your risk of being diagnosed with severe health complications, and much more. All of these are going to translate into lower insurance premiums for your coverage. If you’re overweight, you could pay 50% more for life insurance. If you want to save money, it’s time to start lacing up those running shoes and skipping the junk food.

The best way to ensure that you’re getting the best rates is to work with an independent insurance agent. Every insurance company is different, and all of them have different methods of calculating premiums. You’ll get drastically different rates depending on which company that you get the quote from. Each insurance company is going to look at your driving record differently, which means that it’s important that you get dozens of quotes before you decide which one is going to work best for you.

There are thousands of companies on the market, which means that you could spend weeks looking to get the best rates for your insurance protection. Instead of spending hours and hours on the phone calling companies, let one of our independent brokers do all of the hard work for you. We work with dozens of highly rated companies across the nation and we can bring the best rates directly to you.

Term Life Rates and Your Driving Record

Your life insurance rates and your driving record are things you have to consider. A bad driving record negatively affects your life insurance rate, as well as your acceptability. If you have a family to take care of, or are hoping to sometime soon, then you need to look at how you drive. Bad driving does increase your chance of death, and life insurance companies know that.

You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the insurance protection that your family deserves. If something tragic were to happen to you, and you didn’t have life insurance coverage, your family would be responsible for a massive amount of debt or other final expenses.

If you have any questions about your driving record and your life insurance, please contact one of our experienced independent agents today. We would be happy to answer those questions and connect you with the best policy to meet your needs. It’s our mission to ensure that you’re getting quality insurance coverage for your family.

If you want to start comparing insurance companies and plans, either use our quoting tool or contact one of our agents.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: