No one is perfect, and most people get a traffic ticket at least one in their lifetimes. But the truth is, your driving record can significantly affect your life insurance. If you have a current life insurance policy and you get a speeding ticket, it will not affect your rates. On the other hand, if you are applying for a new policy or additional coverage, you can be sure that your driving record is one of the factors the insurance company will consider.
Life insurance underwriters are thinking in terms of numbers and percentages. They are tying to determine the odds that you will have an early death. This is something they want to avoid, as it means paying out death benefits before the company can collect a substantial amount in premiums. For this reason, insurers charge higher rates when they determine there is more risk involved.
In reviewing your driving records, life insurance companies will look at the following:
“MVR” is an abbreviation for motor vehicle report. It is the report on your driving record maintained by the state and submitted to insurance carriers upon request. You authorize this as part of your application for life insurance.
To qualify for the best rate class (Preferred Plus) you must have no major infractions in your MVR for the past five years. Major infractions include DUI, reckless driving, and license suspension or revocation. Too many moving violations can also increase your life insurance premiums. Most insurers will not care about one or two speeding tickets, but if you have more than two violations in the past three years, your rates will go up. If you have more than four in the past three years, your application is likely to be declined.