We’ve already discussed how a DUI can impact your car insurance premiums, but that’s not the only aspect of your insurance that is impacted by a drunk driving conviction. The hike in life insurance premiums is just another hidden cost associated with a DUI. Today we take a closer look at how a drunk driving conviction affects your ability to purchase life insurance.
DUI and Life Insurance
According to a market analysis from NerdWallet.com, life insurance companies jack up your rates because a DUI puts you in a the high-risk category. Generally people will see a spike in their premium if they’ve had a DUI in the past 5 to 10 years, and it’s not uncommon for a company to flat out deny coverage to an applicant if they have multiple DUIs on their record. The reason behind a life insurance company’s hesitancy is simple.
“Drunk driving is a risky behavior, and a deadly one,” said Jeanne Salvatore, spokeswoman for the Insurance Information Institute.
According to the National Highway Traffic Safety Administration, a driver with multiple DUIs is about 40 percent more likely to cause a fatal crash. Additionally, drunk driving can be a sign of alcoholism, which can increase the risk of other problematic health conditions, like high blood pressure, heart and liver disease, cancers and strokes. If you’re caught driving under the influence, particularly in America, you’ll have to get some illinois sr22 insurance which makes driving even more expensive unless you are able to find a cheap quote at somewhere like InsuredASAP.
“The mortality rate for people who have been convicted of DWI is higher than those who have not, all else being equal,” said Mike Vaughan, associate vice president of life insurance at Nationwide.
Rate Hike
Here’s are some things a DUI offender may run into while applying for life insurance, be it on PolicyMe.com or by other vendors:
- Companies like AIG, Banner and SBLI will make applicants wait two years after a DUI before they’ll consider the applicant for coverage.
- Applicants with a DUI, no matter how healthy they are, will be denied the best rates by most insurance companies.
- Some insurers will make people wait 10 years after a DUI to be eligible for the best rates.
- A DUI offender can expect to pay roughly an additional $7.50 for every $1,000 worth of coverage, either temporarily or for the duration of the policy. That’s nearly $2,000 more a year for a $250,000 policy.
- DWI offenders can ask for a rate reduction after 2-3 years of clean driving, but that also includes avoiding other risky driving behaviors, like reckless driving or excessive speeding.
- Payment to a beneficiary can be denied if the insurance company uncovers that you lied about not having a past DUI on your record.
So in the end, not only can life insurance be tough to get after a DUI, it can be downright expensive. Some people are afraid to spend money on an attorney to defend a DUI, but as you can see, five years at a heightened life insurance rate can cost you nearly $10,000 alone. That’s why it’s so important to seek out an experienced DUI attorney to handle your case. Even if you spend a little more on the front end, you’ll easily come out ahead in the long run if your attorney helps get your charge reduced or dropped.
When you are convicted with a DUI, it is extremely important that you report it to your insurance company as soon as possible. For some people, that might mean ringing them to go through what happened and what the charges are for etc, but some companies have invested in agency management meaning you would have to fill in forms online, or speak to an agent over the phone, which might be a much quicker process.
Click here to schedule a free consultation with a DUI attorney if you want to discuss fighting your drunk driving charge.
