When shopping for accurate life insurance quotes online, most people only consider their general health when trying to find out how much the coverage will cost. One thing that is often overlooked is driving record – any moving violations (such as speeding or running a stop light), DUI charges (even if resolved), accidents, reckless driving tickets, and whether or not your license has been revoked. While a single speeding ticket 10 years ago won’t have an effect on your rates, four speeding tickets and a DUI charge in the past 12 months will change the insurance company’s offer in a big way.
As discussed in previous blog entries, every life insurance company has different underwriting guidelines. The guidelines determine the risk classification you are assigned, which in turn determines the price that you pay depending on how much coverage you want and how long you want that coverage guaranteed.
Most companies will disqualify you from the best risk class (Preferred Plus) if you have more than one moving violation in the past 2-3 years. Many of those will disqualify you from all rates better than a standard risk class (3 levels below the Preferred Plus best risk class) with 3 or more violations within 2-3 years. Since the rates for a standard can be more than twice the price of a Preferred Plus, this is a big factor if your driving record isn’t exactly spotless.