LIFE Insurance rejected for bad driving?!?!?

Jun 7th, 2011
by admin.

I was just declined for a 20 year life insurance policy (required for a small business) by State Farm on account of a poor driving record (I have auto insurance, though). No arrests, no DUIs, nothing like that, just a dumb suspension and an accident deemed my fault, no injuries or anything, just a fender bender. Does this seem strange? Does anyone know a company that will insure me? I’m only 32, non-smoker, in good health, no family histories, etc.

Posted in: Auto Insurance Policy.
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4 Comments

  1. mbrcatz says:
    May 22, 2010 at 8:03 pm

    You need one licensed in your state.

    Go talk to a local, INDEPENDENT agent, to get a quote or three. You can locate one at http://www.iiaa.org.

    No, it’s not strange. You just have to shop around a bit. Let an agent do it for you.

  2. JamesT says:
    May 22, 2010 at 8:05 pm

    Life insurers lost money on their investments like everyone else in the past 2 yrs. So they are looking to make up for it by charging more and declining to insure people. They are looking for excuses to NOT insure you. So, no this isn’t strange. It is unfortunate. See other answers, check out an independent agent who can shop around.

    We had a client who consulted a dr. for depression after her dad died and left her lots of property to handle. The insurance company refused to insure her for life because of “depression”. We learned that this insurance company hates depression. Different companies hate different things, which is why you need to shop around.

    Another client was refused the best health rating because she had “osteopenia”. This is basically a made-up “condition” in which the insurance company THINKS you might get osteoporosis SOMEDAY. In other words, you don’t have anything wrong with you today, but you MIGHT someday, and they aren’t going to take a chance they’ll have to pay out. (This was LTC insurance, not life.)

    Shop around for another company, try again. Good luck!

  3. Pikachu <3 says:
    May 22, 2010 at 8:25 pm

    It’s true, insurance companies are trying to cost cost this year as I work in the healthcare industry and many insurance companies are trying to evade certain claims we send in for services. You need to shop around during these times and open your eyes to local mom and pop’s insurance businesses. Let yourself be an actual person to an insurance company, not just a number.

  4. Ginger says:
    May 22, 2010 at 8:47 pm

    As a former Life and Health insurance underwriter, I can tell you that driving records are always important underwriting factors and they have always been. First, what was the reason for your license suspension? Reckless driving? Failure to appear? Possession of illegal drugs? All of these are risk factors that put you in a high risk category. Usually, companies are much more understanding if your license problems have been cleared and your license reinstated. NOTE: The “fender bender” combined with other factors, such as tickets or license suspension, put you in a high risk category. Get them an explanation, get it cleared and I bet you won’t have any problem. Also, just because you have car insurance, doesn’t mean you have low risk car insurance. You may find your rates decrease dramatically when your license problems are cleared up.

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