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Can a DUI Arrest Affect My Life Insurance Rates?

Dui is considered irresponsible and risky behavior - it puts the life of the driver and everyone around him/her at risk. It poses a question about the driver's lifestyle issues and decisions. If there is a citation on a DUI incident, this will reflect later on, when the driver is applying for a life insurance policy, whether it's a term life insurance or a whole life insurance plan. He/she will appear as a risky candidate who makes impaired decisions and does not have an attractive and healthy lifestyle as per insurer's perception. Immediately, it raises a red flag.

Whether it is a onetime incident or a sign of a major problem, such as an alcohol addiction, the insurers do not know that - they only see the citation. The individual becomes an insurance risk. Any other substance abuse becomes an issue as well. The driver looking for life insurance coverage will have to present documentation that proves that it was a onetime only incident and he/she is not an insurance risk. Documentation will include paperwork that will prove a good driving record, lab tests, or screenings for substance abuse, hepatitis screenings, records that show and support a stable work history and/or family history. In addition, if the person is in a substance control program such as AAA records must be presented. It is up to the insurance company to request the documentation they feel it is necessary to evaluate a life insurance policy application.

There is one important issue here, despite the documentation, there is a minimum wait of one, or two years before a DUI driver can be eligible to obtain a policy. A driver with a record of an incident that occurred five years prior and have not been repeated will have a better chance. Other issues are taken into consideration by insurance companies such as the occupation of the person who seems to have a drinking issue - drinking + a risky profession can cause insurance providers to deny a policy or to issue a policy with very high rates/premiums.

A driving record counts as well. Insurers look up moving violations and some companies will not allow more than one in a period of three years. A license suspension or revocation, or reckless driving will also be looked at through motor vehicle records. Other records such as medical records are investigated. After all, the insurance coverage and premium rates are based on how healthy a person is and how long that person might live - a person's healthy lifespan. Insurance companies count on the possibility of not having to pay a claim, and a person with a DUI and other violations on their record suggest to insurers the contrary - that the possibility of having to pay a claim due to reckless behavior is a very high one. Therefore, they would have to make their money by issuing very high premiums and hoping that you do not become a risk, or just play it safe completely by denying coverage. They can also cancel an existing policy, or deny a renewal. It is believed that the consumption of alcohol can shorten a person's lifespan by ten to fifteen years. Insurance companies listen to statistics as well.