You may have heard before that having a driver’s license is an important fact when you are shopping for life insurance. Insurance companies treat driving merely as another way of exposing your life to risk. Therefore, you will have to be able to convince your insurer that you are indeed a good and careful driver.
Unfortunately, too many accidents happen on the road, many of which are avoidable. Alcohol, reckless driving, speeding, and lack of attention cause way too many injuries and deaths to be ignored. Many campaigns vehemently promote safe habits, such as the annual spring seat-belt campaign.
But there is another danger lurking in the streets. In addition to irresponsible drivers, driving seniors may pose threat to themselves and others too. Aging will, sooner or later, affect one’s ability to focus on the road. For those reasons, senior drivers will be inevitably deemed more at risk.
So what are the main points on your application that insurers look at? You should pay attention to the following:
1. How old is the insured?
2. Did the insured have any driving offences in the past? If so, what were those? How severe were the offences and how long ago did they take place?
3. Has the insured had any records of driving under the influence of alcohol or other illegal substances? How many were there and of what sort?
4. Was the insured’s license suspended in the past? How many times?
5. Did the insured have any accidents? If so, how many and how serious were they? Whose fault were they?
6. Does the insured take part in any other high-risk activities, such as extreme sports? Does he or she travel to dangerous places, such as war zones?
It is advisable that the applicant provides as much information on any offences and accidents as possible, because the insurer will have to examine each item in detail. All extra information may help speed up the process, while any omissions may lead to unnecessary delays. Another rule: the more offences, the longer the approval process.
If the applicant’s license is suspended due to driving under influence (DUI), the application will not be examined until six months after the suspension end. If there are other offences, the waiting period will be extended to 12 months.
The insurance company may still decide to charge you only the regular fee if you have had but a few minor violations. In more serious cases, you should expect to pay a temporary surplus of $2.50 to $5.00 on your monthly premium for every $1,000 of benefit for at least the first three years of the policy. However, if you managed to collect multiple DUIs in the past, your insurer may simply refuse to insure you at all.
In summary, the best way for you to keep your insurance fee low is to be a sober and responsible driver. Although you cannot do much about your growing older, you may try to take cognitive examinations if you feel that your brain has been defying normal aging.