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Like to Drive Fast? It Could Be Costing You in More Ways Than You Think

driving record and life insurance rates
  • Mar-17-2017
  • Richard Reich

The amount of money that you pay every month for your life insurance policy is based on a number of different factors. You might be surprised to know that your driving record is one of them. Insurance companies are always assessing the risks involved in taking on a new policyholder, and part of the risk is your lifestyle. They need to make sure that they receive a decent return on their investment and you should understand that this has a direct impact on your life insurance rates.

This means combing through a policyholder’s medical history, lifestyle and their driving record in order to assess the risk. If you think that you’re paying too much for life insurance, your history on the road might have something to do with it. Learn more about how your driving record can affect life insurance premiums.

Assessing the Overall Risk

Insurance companies are accustomed to doing research on their applicants prior to issuing a policy. This is their way of calculating how much money people should pay for life insurance. If a young and healthy person purchases life insurance, they will pay less than someone with a serious heart condition who’s in their late 50s. This is because the insurance company can expect to receive premiums from the healthy customer for a much longer period of time which directly impacts your life insurance rates.

The same is true of a person’s driving record. If someone has a history of automobile accidents, driving without a seatbelt, speeding, or driving under the influence of drugs or alcohol, the insurance company is taking on more risk by issuing a policy to that person.

In the company’s eyes, this person might not be around for very long because they are making risky choices with lifestyle activities. On the other hand, an applicant with a clean driving record represents less of a risk, and therefore, will pay less for life insurance.

  It Pays to Slow Down and Buckle Up

If you are considering purchasing life insurance, you can lower your premiums by leading a healthy lifestyle and by staying safe on the road. In addition to lowering your premiums for life insurance, being a responsible driver will also help you save on your automobile insurance premiums. A minor traffic violation or a high-speed violation can lead to some unnecessary costs down the road. Paying more for life insurance is just another reason to play it safe behind the wheel.

For more information about the many factors that can impact your life insurance rates, speak with an insurance professional at (866) 691-0100 during normal business hours, or you can contact us through our website 24/7.

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