If you’ve been convicted of driving under the influence (DUI) in California, you know it will affect your auto insurance. But did you know it can affect your life insurance as well? The consequences of a DUI extend far beyond the court.
Your insurer may raise your premiums, limit coverage, or even end your policy if you’re convicted of DUI. Let’s take a look at what to know about DUIs and life insurance, the potential impact on your coverage and rates, and what steps you can take to minimize the consequences by working with our Los Angeles DUI lawyers.
How DUIs Affect Life Insurance Eligibility and Rates
The goal of a life insurance provider is to get more money from their premiums than they pay out on policies. The company will charge the policyholder more if the policyholder is at a higher risk of losing their life.
When you apply for life insurance, the insurer will ask about risk factors to determine your eligibility and premium rates. A DUI conviction can be considered a significant risk factor, as it may indicate a higher likelihood of engaging in risky behavior or experiencing premature death.
The impact of a DUI on your life insurance depends on several factors:
The Severity of the DUI
The severity of your DUI offense, such as your blood alcohol concentration (BAC) level, whether there was an accident or injury, and any aggravating factors, can influence how the insurer views your risk.
The more severe your DUI and its circumstances were, the more likely an insurer will charge higher rates for your life insurance policy.
Time Since the DUI
The more recent your DUI conviction, the greater the impact on your life insurance. As time passes without additional offenses, the insurer will weigh your DUI less in their analysis.
However, multiple DUI convictions can significantly increase your perceived risk and make it more difficult to obtain life insurance coverage at affordable rates.
Possible Outcomes for Life Insurance After a DUI
Depending on your specific circumstances and the insurer’s policies, you may face one of the following outcomes when seeking life insurance after a DUI:
Higher Premiums
The insurer may offer you coverage but at a higher insurance premium to account for the increased risk associated with your DUI conviction. How much more will depend on the insurance provider. Keep in mind that your premiums may lower over time if you get no further DUI convictions.
Limited Coverage Options
Some insurers may restrict the types of life insurance policies available to you or offer lower coverage amounts due to your DUI. If you’re shopping around for life insurance, ask for details on what is covered so you can compare what’s covered.
Denial or Cancellation of Coverage
In some cases, particularly if you have multiple DUIs or other significant risk factors, the insurer may deny your application for life insurance altogether. If you already have a policy, the insurer may decide to cancel your policy altogether. Make sure you’re still covered if you’ve been convicted!
What to Do If You Have a DUI and Need Life Insurance
If you have a DUI on your record and need life insurance, there are steps you can take to improve your chances of obtaining coverage at a reasonable rate:
Shop Around
Different insurers have different policies regarding DUIs. Compare quotes from multiple providers to find the best coverage and rates for your situation.
Be Honest
When applying for life insurance, disclose your DUI conviction. Failing to do so could result in denial of coverage or cancellation of your policy. You can save yourself a lot of time by being honest. The insurers can and will run background checks anyway, so if you don’t tell them you got a DUI, it won’t look good.
Demonstrate Positive Changes
If you’ve taken steps to address the underlying issues that led to your DUI, such as completing substance abuse treatment or maintaining a clean driving record, share this information with the insurer.
Consider Working with a Specialty Insurer
Some insurers specialize in providing coverage for individuals with higher risk factors, including DUIs. Working with one of these providers may increase your chances of obtaining life insurance.
Get Help from Los Angeles DUI Lawyer
Now you know what to know about DUIs and life insurance. While our lawyers cannot help you lower your life insurance premiums after you’ve been convicted of a DUI, getting help from a Los Angeles DUI Lawyer can prevent you from getting convicted in the first place.
If you’ve been charged with a DUI in California, don’t wait to seek legal representation. Contact us today for a confidential consultation. We’ll review your case, explain your options, and develop a tailored defense strategy to protect your rights and future.
With our experience and dedication on your side, you can face your DUI charges with confidence and work towards minimizing the impact of your arrest on your life insurance.
