Motor Vehicle Records to be Used by Life Insurers?

Filing Cabinet of RecordsIf you tend to have a lead foot and have a passion for the “fast lane” it may be time that you slow down and play safe while behind the wheel, as a new study has found that your driving history can be used as a predictor of an individual’s lifespan, the Insurance Journal reports.

Just like car insurance companies, life insurance companies could begin using motor vehicle driving records to predict an individual’s life span, which could affect your life insurance policy premiums.

A LexisNexis study, “The Motor Vehicle Record (MVR) Mortality Study,” found that motor vehicle driving records are a predictive data source of an individual’s all-cause mortality, which is an individual’s overall likelihood of dying in general.

“Our research shows that motor vehicle records can be a reliable indicator of lifestyle risk for insurance applicants,” explained Elliott Wallace, vice president, life insurance, LexisNexis. “For consumers, this study offers insight into how lifestyle impacts risk and the considerations they need to make for life insurance. By examining the severity and number of violations on an applicant’s MVRs, a life insurer can make more accurate pricing decisions, improve risk posture and improve underwriting efficiency.”

Alcohol-relation infractions and excessive speeding caused all-cause mortality rates to soar to 70 percent higher than individuals who don’t participate in such infractions; while six or more driving violations raised an individual’s all-cause mortality rate by 80 percent.

The study identified the trend across all age groups and genders, with women typically having lower incidences of adverse driving records.

For insurers, LexisNexis researchers note:

  • In cases where underwriters are striving to improve the customer experience by ordering fewer reports, MVRs offer excellent protective value because they offer insights into an applicant’s lifestyle risk.
  • MVRs are one of the more affordable data sources available for insurers and are non-intrusive for customers – a benefit when applicant retention is an issue for most carriers.
  • MVRs can help insurers improve efficiency – real-time availability of MVR data means that insurers can streamline their processes and reduce cycle times.

So what does this mean to you? Some life insurance companies could begin using your motor vehicle driving records to get a better look at your lifestyle, which can affect the cost of owning a life insurance policy.

In closing, it’s best to drive safe and to understand that bad choices on the road can end up affecting more than your driving privileges.  National Agents Alliance team members, another important tidbit to be aware of!

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