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Your driving record helps insurance companies assess how much of a risk you are.
Your driving history is one of several factors life insurance companies consider when determining your rates
Most companies look at the past five years of your MVR, or motor vehicle record
Certain violations, like a DUI, will make it much harder to get coverage — but not impossible
Many factors influence how much a given person will pay for life insurance — health, age, the amount of coverage purchased. Most people applying for life insurance probably know that specific health issues, like a family history of heart disease, or existing high blood pressure, can mean a higher premium.
And the younger you are when you first apply for life insurance, the better rate you’ll be able to secure. But many people don’t know that your driving history also impacts how much you’ll pay for life insurance.
During the underwriting period, when the life insurance company assesses your risk, the insurer will look at your motor vehicle report, or MVR, to assess how much of a risk you are as a driver.
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Your motor vehicle report (MVR) — also known as your driving record — is essentially a report card for your driving. This is what your life insurance company will look at during the underwriting period.
Your state’s DMV maintains your motor vehicle report or record, which includes your accidents and violations. Some of the types of incidents that would appear on your MVR include:
But those accidents and violations won’t necessarily remain on your MVR forever. Depending on your state and the severity of the violation, an accident or violation may stay on your driving history for several years, or a decade or more.
Many states also use a “points” system to track violations — different types of offenses earn you different amounts of points. Rack up too many points and you could be facing license suspension or revocation.
Different state DMVs may also maintain multiple versions of your driving history. In Ohio, for example, you can see an unofficial driving record for free, but it only shows the past two years of your driving history, or you can pay $5 to see your driver abstract, which shows the past three years of your history. In New York, drivers have both a standard driving record, with recent violations and accidents, and a “lifetime” driving record, with every incident and violation from your entire history of driving in that state.
Your driving record isn’t as readily accessible as your credit report (which also affects your insurance ratings), but you can order your MVR from your state’s licensing agency.
When you apply for life insurance, the insurance company sets your rates by assessing your risk of dying during the term of the policy you’re purchasing. They do this by compiling your risk factors and assigning you a classification that will determine your monthly premiums.
Each insurer has different standards and even terms for their classifications, but essentially: the riskier you are, the worse your classification will be and the higher your premiums will be. Too many risk factors and you may be denied coverage altogether.
Most life insurance companies will look at the past five years of your driving history when determining your risk factors. In order to get the best classification at most life insurance companies, you need to have absolutely no DUIs (driving under the influence) or DWIs (driving while intoxicated) on your record in the past five years. Some insurers increase that to the past seven or 10 years. You also cannot have any record of reckless driving or a license suspension.
Typically, you also cannot have more than two moving violations in the last three years to qualify for the best classification. (A moving violation is any time you break a law while the vehicle is in motion, like speeding, failing to stop for a pedestrian and failure to use a seat belt).
If you have recent or multiple moving violations, you won’t be able to get the best possible rates on your life insurance, but that doesn’t necessarily mean you won’t be able to get covered.
Insurance carriers vary in how they view your driving record. Some carriers may offer you coverage with a lower classification (higher premiums); others will also charge you an extra flat fee per year (a few dollars per thousand dollars of coverage is possible).
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Life insurance companies are very strict about DUIs and DWIs. Not only can you not get the best classification and rates, many life insurance companies will postpone coverage if you have a DUI on your record within the past five years. And some companies will decline coverage altogether.
Luckily for drivers who have changed their behavior, some life insurance companies are more tolerant of past DUIs than others. Some carriers knock that five years down to two or three as the classification gets lower, making it easier to get life insurance despite past transgressions.
Same goes for reckless driving — while not all life insurers specifically look at reckless driving violations, the ones who do hold it up to the same standards as DUIs and DWIs.
If you have a recent DUI or DWI conviction, the best course of action is to start the process, get quotes, and talk to a licensed life insurance agent, who can look at the full picture of your application, including your driving record, and make a recommendation for which carrier is likely to give you the best rates.
We pulled quotes for a healthy 34-year-old male in Virginia for $500,000 policy with a 20-year term. Then we pulled quotes if he’d had a DUI five years ago and if he’d had one two years ago:
|Company||No DWI||DWI 5 years ago||DWI 2 years ago|
|Mutual of Omaha||$21.66||$21.26||N/A|
Note that some carriers require more info before they’ll quote for this situation; a Policygenius expert can provide more information after your initial application.
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Yes, we have to include some legalese down here. Read it larger on our legal page. Policygenius Inc. (“Policygenius”) is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best efforts to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application. Savings are estimated by comparing the highest and lowest price for a shopper in a given health class. For example: for a 30-year old non-smoker male in South Carolina with excellent health and a preferred plus health class, comparing quotes for a $500,000, 20-year term life policy, the price difference between the lowest and highest quotes is 60%. For that same shopper in New York, the price difference is 40%. Rates are subject to change and are valid as of 2/17/17.
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