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Having a DUI or reckless driving on your record impacts more than just your car insurance rates. Some life insurers may turn you away, while others may just increase your premium. Finding an insurance company willing to insure you may require extra research, but you should still be able to buy a policy.
Being approved for life insurance comes down to the number and nature of driving offenses on your driving record, plus common factors like your age, gender and health. Life insurance companies rank each traffic violation or accident based on its severity, and each typically sets a maximum amount for denying applications, such as three violations.
Life insurers view people with poor driving records as more likely to die in a car crash than other people. So the company is taking a higher risk by offering them a life insurance policy. For serious violations, such as a DUI, reckless driving or multiple accidents within the past year, many standard life insurers may reject your application.
Other life insurers, particularly online-based life insurance companies, may be more willing to offer you coverage with a poor driving record — but with a lower death benefit and at a higher monthly cost.
If you have a poor driving record, you may have fewer life insurance companies to choose from than you would otherwise. You can still qualify for traditional forms of life insurance with some companies, but your death benefit may be capped at a lower amount, such as $100,000 or less.
Getting life insurance with a poor driving record or DUI involves searching out insurance companies that accept and specialize in high-risk applicants.
Here are the steps to finding an insurance company for your needs.
Having a poor driving record doesn’t make life insurance any less important. If you have a family who depends on your income, bills to pay or your children’s future to consider, life insurance still offers a way to help ensure your family stays afloat after you die.
If you’re married and have kids, your family likely depends at least partially on your income. If your income were to suddenly disappear because of a premature death, your family might struggle to maintain their lifestyle and pay the bills.
Even though you’ll likely pay higher rates for a life insurance policy with a poor driving record, it can still make a big difference in your family’s financial security if you die prematurely.
If you die with existing debt, such as a mortgage or student loans, those debts are transferred to your next closest kin, leaving them with an unexpected extra expense. Buying enough life insurance to pay for your debt eliminates this financial strain from your family.
With a poor driving record, especially if you have a DUI or a reckless driving incident, you’re likely considered a high-risk driver. Even though your life insurance premiums may be higher, you could be at a higher risk of a fatal car accident, making life insurance that much more important to buy.
Having a DUI, reckless driving or multiple accidents on your record may make it difficult and expensive to buy life insurance. But you can still get life insurance coverage from more lenient life insurers, although you’ll likely pay a higher rate than normal.
Before applying for life insurance, compare life insurance companies that cater to high-risk applicants to find the best policy for you.
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