The Impact of Multiple Car Accidents on Life Insurance Approval

Most people expect their health, age, and lifestyle to impact their life insurance rates, but what about their driving record? If you’ve had multiple at-fault accidents, speeding tickets, or even a DUI, you could be paying higher premiums or even facing denial from certain insurers.

Insurance companies see a risky driving history as a reflection of your overall risk profile. Simply put, if you have a habit of reckless driving, they might assume you’re more likely to be involved in a serious accident. This increases their risk of paying out a claim sooner rather than later.

So, how exactly do at-fault accidents, DUIs, and traffic violations impact your life insurance? Can you still get coverage if your driving history isn’t perfect? And most importantly, what can you do to improve your chances of securing affordable life insurance? Let’s dive in.

In this article:

• Do Life Insurance Companies Check Your Driving Record?
• Does Having Multiple At-Fault Accidents Signal High Risk to Insurers?
  • Do Insurers Differentiate Between Minor and Major Accidents?
• Can You Still Get Life Insurance If You Have a Risky Driving Record?
• How Can You Lower Your Life Insurance Rates After a Risky Driving History?
• Frequently Asked Questions (FAQs) About The Impact of Multiple Car Accidents on Life Insurance Approval

Do Life Insurance Companies Check Your Driving Record?

When you think about life insurance, you probably assume insurers are mostly interested in your health, things like your age, medical history, and whether you’re a smoker. But did you know that your driving record can also play a big role in your life insurance approval and rates?

That’s right. If you have a history of speeding tickets, reckless driving, or even a DUI, insurers may see you as a higher risk, not just behind the wheel, but in life in general. Here’s how it works.

Life insurance companies don’t just take your word for it when you fill out an application. Instead, they request a Motor Vehicle Report (MVR), a document that provides a snapshot of your driving history over the past several years.

Think of your MVR like a report card for your driving habits. If you’ve been a model driver, great. But if your record is filled with accidents, violations, or DUI convictions, it could raise some red flags.

Not all traffic violations are treated equally. A single parking ticket? No big deal. But some driving infractions can make insurers nervous, including:

• Speeding Tickets: A couple of minor speeding tickets may not hurt your rates much, but frequent violations could indicate risky behavior. If you have a habit of pushing the speed limit, insurers might assume you’re more likely to be involved in an accident.
• At-Fault Accidents: If you’ve been in multiple car accidents where you were at fault, it suggests a pattern of high-risk driving. Insurance companies want to know if you’re more likely to get into another crash in the future.
• Reckless Driving Charges: Things like street racing, aggressive driving, or excessive speeding (e.g., 50 km/h over the limit) can be serious red flags. These violations suggest a disregard for safety, which can impact your life insurance eligibility.
• DUIs/DWIs (Driving Under the Influence/Driving While Intoxicated): This is one of the biggest concerns for life insurers. A DUI doesn’t just affect your car insurance, it also signals a high-risk lifestyle. Many insurers will either charge significantly higher premiums or even decline coverage altogether if you have a recent DUI on your record.

Most life insurance companies check your driving record for the past three to five years. However, serious offenses like DUIs or reckless driving, can stay on your record longer and have lasting effects on your ability to secure affordable life insurance.

If you have violations on your record, don’t panic. Many insurance companies will overlook older infractions, especially if you’ve demonstrated safe driving habits in recent years. While your driving record isn’t the only thing insurers consider, it does play a role in how they assess your risk. The safer your driving habits, the better your chances of securing an affordable life insurance policy.

Does Having Multiple At-Fault Accidents Signal High Risk to Insurers?

Yes, multiple at-fault accidents are a major red flag for life insurance companies. Insurers assess risk based on patterns of behavior, and a history of repeated accidents suggests a higher likelihood of future claims, not just in auto insurance, but in life insurance as well.

When underwriting a policy, life insurance companies consider your driving history because reckless or unsafe driving is linked to an increased risk of fatal accidents. If you’ve had multiple at-fault collisions, insurers may see this as a sign that you engage in high-risk behavior, making you more expensive to insure.

How At-Fault Accidents Can Affect Your Life Insurance Application:

• Higher Premiums: If you’ve had multiple at-fault accidents in the past three to five years, you may be categorized as a higher-risk applicant, leading to increased rates.
• Policy Rating or Substandard Classification: Some insurers may approve you, but with a rated policy (meaning you pay extra due to higher perceived risk).
• Possible Denial for Traditional Coverage: If your record shows a consistent pattern of reckless driving, certain insurers may decline coverage or require you to apply for a simplified issue or guaranteed issue policy, which comes with higher costs and fewer benefits.

Do Insurers Differentiate Between Minor and Major Accidents?

Yes, insurers do differentiate between minor and major accidents when assessing your life insurance application. A minor accident, such as a low-speed fender bender with no injuries, is unlikely to raise concerns or impact your premiums significantly. However, major accidents, especially those involving serious injuries, totaled vehicles, or reckless driving behaviors, are viewed as higher risk. Insurers look at the severity, frequency, and recency of the accidents when making their decisions. A single minor accident from a few years ago may have little to no impact, but multiple at-fault accidents within the last three to five years suggest a pattern of risky behavior. 

Additionally, accidents involving DUI charges, excessive speeding, or failure to obey traffic laws are red flags, as they indicate a disregard for safety, which could influence both eligibility and pricing. While insurers understand that accidents happen, a history of major at-fault collisions signals a higher likelihood of future incidents, which can result in higher premiums, policy rating, or even denial in some cases. If you have a complex driving history, working with a broker can help you find an insurer that offers more flexible underwriting for high-risk applicants.

Can You Still Get Life Insurance If You Have a Risky Driving Record?

Yes, you can still get life insurance if you have a risky driving record, but your options may be limited, and you could face higher premiums. Insurers assess risk based on driving history, and if you have multiple at-fault accidents, reckless driving charges, or DUIs, they may classify you as a high-risk applicant. This doesn’t necessarily mean you’ll be denied coverage, but it does mean you’ll need to explore different options.

Some insurers are more lenient toward driving violations than others, so working with a life insurance broker can help you find the best policy for your situation. If you have recent serious infractions, you might not qualify for standard life insurance rates and could be placed into a rated policy, meaning you’ll pay higher premiums. In more extreme cases such as multiple DUIs within a short time frame, you may need to look at simplified issue or guaranteed issue life insurance, which offers coverage without a medical exam but comes with higher costs and lower coverage limits.

To improve your chances of securing affordable life insurance, consider taking steps to demonstrate responsible behavior, such as maintaining a clean driving record for several years, taking a defensive driving course, or allowing older violations to fall off your record. Over time, as your driving history improves, you may qualify for better rates. Even with a risky driving record, there are always options available, and consulting a broker can help you understand the best choices for your needs.

How Can You Lower Your Life Insurance Rates After a Risky Driving History?

If you have a history of speeding tickets, at-fault accidents, or even a DUI, you might be facing higher life insurance premiums. The good news? Your driving past doesn’t have to define your financial future. With time and a few smart moves, you can lower your rates and improve your chances of getting better coverage. Here’s how:

1. Give It Time: Let Violations Fall Off Your Record: Most insurers look at your driving history from the past three to five years. If your infractions are on the older side, waiting it out might be your best bet. As time passes, insurers will see you as less of a risk, especially if you’ve avoided new tickets or accidents.
2. Take a Defensive Driving Course: Some insurance companies may look favorably on applicants who take a certified defensive driving course. Not only can this help with auto insurance discounts, but it may also demonstrate to life insurers that you’re committed to safer driving habits.
3. Keep Your Record Clean Moving Forward: One or two past mistakes won’t haunt you forever, but a pattern of bad driving can. If you’ve had multiple violations, the best way to recover is to prove you’ve changed. Avoid speeding, reckless driving, and any risky behaviors that could add new marks to your record.
4. Consider a No-Medical or Simplified Issue Policy: If you’re struggling to get approved for a traditional life insurance policy, no-medical or simplified issue life insurance could be a good alternative. These policies don’t require a medical exam and often have more lenient underwriting, meaning your driving history might not be as big of a factor.
5. Work With a Life Insurance Broker: Not all insurers treat driving records the same way. Some are stricter, while others may be more forgiving. Instead of applying blindly and risking denials or high premiums, work with a life insurance broker who can match you with a company that’s more flexible for drivers with past violations.

Frequently Asked Questions (FAQs) About The Impact of Multiple Car Accidents on Life Insurance Approval

Find a solution for what you’re looking for 

A risky driving history can make life insurance more expensive, but it doesn’t have to be permanent. By staying accident-free, taking a defensive driving course, and working with the right insurer, you can secure a policy that fits your budget and needs. At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need. 

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Vaughan, Kamloops, Red Deer, and Portage la Prairie.