The hidden financial toll of summer road trip mistakes
Key Points:
- Life insurance expert reveals how common driving offences can invalidate your policy or drastically raise your premiums, especially as summer travel season approaches
- Expert explains how different infractions affect insurers’ assessments and outlines five everyday driving behaviours that could threaten your life insurance coverage
- Expert provides practical advice on managing your driving record and making accurate disclosures to maintain protection for your loved ones
With summer holidays and school holidays around the corner, millions of Americans are gearing up for road trips. But that driving record hiding in your glove compartment might be costing you way more than the fine you paid.
“Drivers usually don’t realise their behind-the-wheel behaviour can have serious consequences for their life insurance,” warns Meredith Bell, a life insurance expert at Everly Life, a modern life insurance company focused on flexibility and customisation. “While people understand how driving impacts their car insurance, they’re often shocked to learn it affects their life coverage too.”
How Driving offences Impact Your Life Insurance
When it comes to insurance, your driving record speaks volumes. Life insurers view risky driving as a significant indicator of overall risk tolerance.
“Someone who takes chances on the road might also take chances in other areas of life, making them statistically more likely to file a claim,” Bell explains.
While car insurance typically looks at your driving history over the past 3-5 years, life insurance underwriters often examine records spanning 5-7 years or more, especially for serious offences.
Driving behaviours That Could Invalidate Your Life Insurance
Driving Under the Influence
DUI convictions raise major red flags for life insurance providers. A single DUI can increase premiums by 50-100% or lead to rejection of coverage.
“Applicants may not realise that DUI convictions remain relevant to insurers for up to ten years,” says Bell. “And if you’ve already secured a policy and then get a DUI, some policies include clauses that can limit benefits if the policyholder dies while committing a criminal act.”
Excessive Speeding Tickets
Multiple violations or extreme speeding (20+ mph over the limit) signal high-risk behaviour to insurers. Each serious speeding ticket can potentially raise your premium by 10-25%.
Distracted Driving Violations
As states crack down on phone use, tickets for texting or using handheld devices are increasingly showing up in insurance risk assessments.
“Distracted driving citations are widely seen by drivers as minor infractions, but insurers increasingly view them as serious safety risks comparable to driving impaired,” Bell notes.
Driving Without Insurance or a licence
Operating a vehicle without proper insurance or a valid licence demonstrates a disregard for legal requirements. These violations often trigger detailed scrutiny of your application and can increase your life insurance premiums significantly.
Failure to Disclose Violations
“Deliberately omitting traffic violations from your application constitutes insurance fraud,” warns Bell. “If discovered, this can lead to policy cancellation, denial of claims, or even legal consequences.”
Motor Insurance vs. Life Insurance: Understanding the Difference
While both types of insurance consider driving behaviour, they assess risk differently.
car insurance focuses primarily on your likelihood of having an accident. Life insurance, however, uses driving data to assess your overall mortality risk.
“The same DUI that might increase your car insurance by a few hundred dollars could add thousands to your life insurance premiums annually,” Bell explains. “The scales are completely different because we’re talking about potentially paying out hundreds of thousands in death benefits.”
How to Manage Your Driving Record and Insurance Applications
To maintain affordable life insurance coverage:
- Be completely honest on applications: Disclose all tickets and violations when applying.
- Request your driving record before applying: Review your MVR (Motor Vehicle Record) from your state’s DMV to know exactly what insurers will see.
- Time your application strategically: If possible, wait until minor violations fall off your record before applying for new coverage.
Meredith Bell, Life Insurance Expert at Everly Life, commented:
“If you’ve already made mistakes on the road, don’t panic—there are ways to get back on track. First, if you’ve been denied coverage due to driving issues, work with an insurance broker who specialises in high-risk cases. They know which providers are more forgiving of certain violations. Second, consider guaranteed issue policies that don’t require driving record checks if you’re in immediate need of coverage.
“For those with serious violations like DUIs, demonstrating a commitment to change through completion of safety courses or substance abuse programmes can help when reapplying. And remember; time is your ally. Each year of clean driving improves your profile with insurers.
“What’s most important is protecting your family’s financial future. Driving safely is about more than just avoiding tickets, it’s about making sure the safety net you’ve carefully put in place for your loved ones remains intact when they need it most.”
