Do you drive fast? Do you like to skydive? Do you like to take part in other high-risk activities? Do you like to partake in recreational marijuana use?
You may think, “Yeah, so what?”
Well, these activities matter to insurance companies, and they like to incorporate lifestyle situations and choices into the underwriting process. It makes sense. For example, if you have a past history of reckless driving, you are a higher-risk factor than someone who drives the speed limit.
Here are some of the lifestyle areas insurance companies look at:
Drug Use – usually uninsurable if you currently use. If no longer, generally 5 years of no use or treatment
High-Risk Activities – skydiving and deep-water scuba diving, for example. Some professions may be deemed high-risk as well, such as tree cutting
Felonies – depending on the severity, can be a decline
Motor Vehicle Driving – excessive reckless driving record could be a rating or a decline
Marijuana Use – as the political climate changes on this, some insurance companies have relaxed their stance on marijuana use. If used for medicinal purposes, usually there is no rating. If recreational use, some companies have dropped the tobacco rating and replaced the health classification as non-tobacco/standard rating (assuming no other health or lifestyle complications).
Financial Problems – Have you been bankrupt or have a very poor credit score? Carriers also consider your “financial health” or your ability to pay your premiums. A completely healthy person could conceivably be denied a policy if he or she had a recent bankruptcy.
Think you just won’t tell the truth? Well, that probably won’t work. Through their underwriting process, insurance companies can see a picture of your medical history through the Medical Information Bureau (MIB for short), which is supported by member insurance companies (Contrary to popular belief, the MIB does not hold or keep your medical information!), a prescription drug check, or your driving history through your driver’s license number. It’s just best to be honest on the application as being upfront will always allow you a chance at a better outcome.
There is good news, as alluded to the recreational use of Marijuana. Each insurance company underwrites these lifestyle choices differently. For instance, one insurance company may blindly rate all scuba diving activities whereas another one may not rate scuba activities of less than 100 feet and limited to only 20 dives per year. One insurance company may rate upon two major speeding tickets within a year while another may rate upon three tickets.
This brings us to a final point: We have helped many people in similar situations and would be happy to help you. Feel free to call, text, or email us.
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