A DUI Could Prevent You from Purchasing Life Insurance
Shopping for life insurance can be challenging for people with pre-existing conditions, but having a DUI on your record can bring the process to a grinding halt. Drunken driving is an extremely irresponsible and reckless behavior, and few realize the far-reaching impact a single DUI can have on your life. Probation, license suspension, and jail time are a few of the more common penalties for intoxicated driving, and a drunk driver can expect much higher insurance rates for at least a couple of years after the incident.
Many life insurance companies charge applicants with a DUI on their record much more than applicants without. This is because most insurance pricing takes risk factors into account, and if you have a history of reckless or self-endangering behavior, a life insurance company could refuse to cover you altogether – in fact, many companies do just that.
Why Does a DUI Matter?
Statistically speaking, your risk of dying in a car accident is absolutely higher if you drive intoxicated. Drunken drivers are 40% more likely to be involved in a fatal crash, and since 30% of convicted drunk drivers are repeat offenders, it’s easy to understand why an insurance company might interpret a past DUI as a red flag. A DUI could also be an indication of alcoholism, another factor that lowers your life expectancy, which increases you risk factor, and makes you even less likely to qualify for coverage.
Some insurance companies disregard DUIs if they were issued several years ago, but the exact “lookback period” of each company differs – some might insure you with a DUI on your record for last year, while others could deny you coverage for a 10-year-old offense. On average, drunk drivers can expect to pay about $7.50 more in premiums for every $1,000 in life insurance coverage, and that can add up quickly.
What to Expect
If you have an offense on your record, you may still be able to purchase life insurance, and if you have a DUI, California is a great place to shop. Start by giving us a call or click today for more information on the inexpensive coverage we offer at Cost-U-Less Direct. We have insurance experts standing by to answer your questions and address your concerns.
And don’t forget – it’s always best to be honest about any offenses that may be on your record. Eventually, the insurance company is going to find out if you have a record, and telling your agent up front could create an opportunity to negotiate. Lying on an insurance application is fraud, and your beneficiaries won’t be able to receive payment if a DUI is discovered after the fact. Worst case scenario, you won’t waste your time trying to get insurance from a company that won’t insure you, and best case scenario, you could turn another conviction into an opportunity to save money on car insurance. Be prepared to answer many questions about your past and current alcohol use, and be aware that your insurer may request a medical examination to ensure you’re not currently a victim of alcoholism. Again, it’s always best to be up front and honest to avoid rate increases.
Have any questions? Let us know in the comments section below or call or click today for more information on choosing an insurance plan that fits your needs, budget, and lifestyle.