The value of your car isn't the only determining factor. Learn more about the many other variables that come into play when shopping for full coverage auto insurance and tips for controlling your costs.
Can my Health Affect my Auto Insurance?
🎙️ Enjoy our PODCAST on this topic
* podcast transcript
EVA
Ever get your car insurance bill and think, whoa, how’d they come up with this number? I mean, we usually focus on like our driving record, right? Or what kind of car we drive. But have you ever thought about how your health and your car insurance are connected? Get ready for some real eye openers as we take a deep dive into a story that shows how these two things you wouldn’t think they’re related can totally collide.
MAX
It really is interesting how people often separate these parts of their lives, you know, health, driving, insurance. They don’t see how one can affect the other.
EVA
You’re so right, it’s not obvious until bam it hits you. That’s what happened to this guy. John cheap insurance wrote this article about him and let me tell you, John got a crash course and how connected these things really are.
MAX
Oh John’s story and it’s like the perfect example of why we need to understand these like hidden connections.
EVA
OK, so tell me more what happened with John?
MAX
Well, he started getting these awful migraines so bad they were messing with his driving. Oh, yeah, And John being responsible and all, he goes to the doctor, get some meds, thinking he’s doing the right thing. Right? Right. But then things get kind of crazy. Turns out where you live makes a difference because what you talk to your doctor about that can get reported to the DMV.
EVA
Whoa, seriously?
MAX
Yes, certain health problems can trigger something called mandatory reporting.
EVA
Mandatory reporting? What is that?
MAX
Basically it means in some states, doctors, they have to tell the DMV if a patient’s got something, they could make them an unsafe driver. It’s all about keeping the roads safe, you know?
EVA
Wow, so like what you tell your doctor doesn’t stay with your doctor?
MAX
Not always, no.
EVA
And for John, his migraines, they set off this whole chain reaction. He’s trying to take care of his health, but because of this mandatory reporting thing, his doctor had to, like, report him. Can you guess what happened next?
MAX
Let me guess, the DMV came knocking.
EVA
Bingo, they suspended his license for 90 days. Talk about a bad headache.
MAX
Oh no, poor guy. So not only does he have these terrible migraines, now he can’t even drive.
EVA
And and it gets worse, the article said John’s insurance company found out and hit him with what they call an exclusion.
MAX
Yeah, exclusions. Basically it’s a part in the policy that says we’ll cover you for this and this, but not that. For John, it meant they kept his insurance but no driving.
EVA
So he was totally stuck. It’s like one of those domino things, you know one thing leads to another and suddenly you’re like trapped in this whole web of rules and stuff you didn’t even know about.
MAX
Yeah, it’s wild. And John’s situation, it really shows how we think about like our health and driving as totally separate. But they’re not, are they?
EVA
Right. And it’s not always as simple as oh, I broke my leg, obviously I can’t.
MAX
Drive exactly the article mentioned like epilepsy, dementia, even you know like side effects from meds or if you’re out of it for a bit. Those things can totally mess with your driving.
EVA
Totally. Like, haven’t we all taken those meds where you’re like, whoa, I feel a little fuzzy. What if you were driving? Not good.
MAX
Right. And that’s where it gets tricky because we want people to take care of themselves, follow the doctor’s orders, take your pills, all that. But then saying something could mean higher insurance or no more driving. That’s a tough spot.
EVA
It is. So where’s the line then? How do we balance privacy and, you know, making sure everyone’s safe on the road?
MAX
$1,000,000 question and honestly, there’s no easy answer. It’s ethics, it’s the law, it’s society all mixed up.
EVA
It’s like we need new rules for, well, for now, right With all the tech and stuff we’ve got. What is it? Telematics, where they track how you drive in real time? Crazy.
MAX
For sure. And it makes you wonder, what if they start using health data too? Your smartwatch tells your insurance company. Uh oh. Heart rates up. It’s kind of cool, but also kind of creepy.
EVA
Right. Like I get it, if we can use tech to make driving safer, awesome. But could it be used the wrong way? Totally.
MAX
That’s the thing, isn’t it? We’ve got to keep talking about this stuff, figure it out as we go. No easy answers, but knowing what’s up, being open about it, that’s the first step.
EVA
100% knowledge is power and all that, especially with health, driving, and Oh yeah, that car insurance. Bill. John’s story is a good reminder that these systems are out there and it’s up to us to understand how they work.
MAX
I totally agree. If you remember just one thing from this, let it be this. Be in the know, be ready for anything, and don’t be afraid to ask for what you need.
EVA
So what can our listeners actually do to be, like you said, proactive?
MAX
Start simple, read your insurance policy. I know sounds boring but seriously so many people have zero clue what’s in there. But for anything about, you know, health stuff, what you got to tell them those exclusions? If something seems off, call your insurance person.
EVA
It’s like when we just click accept on those online terms and conditions without even looking. But with insurance, those details, they matter.
MAX
You got it. And hey, if your health situation changes, like you get diagnosed with something new, new meds, anything that could affect your driving, time to dust off that policy and have a chat with the insurance company.
EVA
That’s a good point. Don’t wait for them to figure it out. Be upfront, talk to them, deal with it head on.
MAX
And Speaking of being proactive, what about checking out other insurance companies?
EVA
Oh yeah, good call. Prices can be all over the place. You know some might be cooler about health stuff or have special policies. Do your research right.
MAX
It’s all about finding what works for you.
EVA
Exactly. Insurance is about risk, right? If you can show them, hey, I’m managing my health, I’m being smart, that looks good for you.
MAX
So it’s not just what you tell them, but how you tell them. If you’re doing what the doctor says, going to appointments, maybe even doing driving rehab, that shows you’re serious.
EVA
Exactly. You’re taking charge, right? And that means a lot to insurance companies.
MAX
And we can’t forget about sticking up for yourself. You know, John’s story really shows how important that is.
EVA
Totally. If you’re hitting roadblocks with your license or insurance because of a health thing, there’s help out there. Groups that can give advice, fight for you, all that. John’s story was definitely a wild one, that’s for sure. Full of surprises, but it really shows something we don’t talk about enough, how our health and car insurance are connected.
MAX
It’s true. It reminds us that these systems exist and we got to be in the know, be proactive and look out for ourselves.
EVA
It does make you think, what about people with disabilities? I mean, it seems like they’d be in a tough spot with all this.
MAX
You’re right, it’s a really good point. Luckily there are laws like the Americans with Disabilities Act, the ADA. It’s there to protect people with disabilities from getting the short end of the stick with insurance.
EVA
So that means like an insurance company can’t just say NOK because you have, say, diabetes. But what if your diabetes makes it hard to see well when you’re driving? Can they change your policy then?
MAX
That’s where it gets kind of tricky. They can’t just drop you because of a disability, right? But they can tweak your plan or say you need extra coverage depending on what’s going on. It’s all about figuring out the risk.
EVA
OK so that makes sense, but the article mentioned that people with disabilities, they often end up paying more for car insurance. How does that work if the ADA is supposed to protect them? Seems a little off, doesn’t it?
MAX
Yeah, I see what you mean. It’s a fair question. A lot of times it has to do with the kind of coverage they might need. The article talked about adaptation coverage, which basically covers the cost of making a car work for someone with a disability.
EVA
So things like hand controls if you have trouble moving or those special mirrors, if you can’t see, well, that’s where that coverage comes.
MAX
In Yep, exactly. And then you’ve got mobility insurance, which is more about covering the cost of transportation if someone can’t drive themselves, like wheelchair accessible rides or maybe ride sharing apps. And of course, if you’ve got special equipment like a wheelchair lift for your car, you might need equipment insurance to cover any damage or if someone swipes it.
EVA
Those sound like pretty important things to have if your disability makes it hard to drive, but I can see how all those extra costs would really add up.
MAX
Oh absolutely. And it just shows why it’s so crucial to be upfront with your insurance company. You know know what’s covered, what’s not, and what your options are. Don’t be afraid to ask questions.
EVA
It sounds like John’s story is a good reminder for everyone listening, no matter what their health situation is, to really understand what they’re signing up for with their insurance. Don’t be shy about asking questions, checking out what other companies offer, and making sure you’re getting the best deal.
MAX
Couldn’t agree more. And hey, if things change with your health, don’t wait until there’s a problem. Give your insurance company a heads up and have a chat about what it could mean for your coverage.
EVA
Be your own best advocate, right? Because ultimately it’s about protecting yourself and being in control.
MAX
Well, said John’s story. It started with a health scare, but it turned into a master class in dealing with the crazy world of insurance and learning how to stand up for yourself.
EVA
It’s definitely given us a lot to think about. And on that note, here’s something for everyone listening to chew on. We’re relying more and more on technology right in healthcare, in our cars, everywhere. So how do we make sure that all that data is being used the right way ethically when it comes to our insurance? Hop on over to our social media and let us know what you think. Until next time, drive safe and stay informed.
While it’s bad enough that medical tests can result in unexpected and sometimes, long-term implications, many wonder if their auto insurance can be affected as well?
“Hello, John? Your test results from your recent exam are in and the doctor would like to meet with you to review them.”
Meet John
The names in the following example have been changed to protect the anonymity of those involved, however this is a real-life example of how a health condition ultimately impacted auto insurance.
John had gone to the doctor to address recurring migraines. He told Dr. Friday that his migraines had suddenly become frequent and so severe that he often felt light-headed (sometimes while driving) and on more than one occasion he had become disoriented and/or briefly lost consciousness.
Dr. Friday ran tests, prescribed medication and at his follow-up visit, referred John to a Neurologist for more testing. John was told that if he experienced bouts of light-headedness, loss of consciousness or any other new symptoms before his appointment with the Neurologist (scheduled 10 days out), he should contact Dr. Friday right away or go to the nearest Emergency Room. It was also recommended that John not get behind the wheel of a car while he was experiencing a migraine.
Five days after his visit in Dr. Friday’s office, John received a letter from the Department of Motor Vehicles. The letter indicated that John had 7 days to surrender his driver’s license to the DMV and that his driving privileges had been revoked for a minimum of 90 days. John was in shock. His doctor had recommended that he not drive if he was experiencing a migraine, but he had no idea that his symptoms posed a risk of losing his driving privileges, all together. John lives in a Mandatory Reporting state.
Because John had reported feeling light-headed while driving to his provider, by law, Dr. Friday was required to submit that information to the DMV. His provider felt that his condition posed a reasonable threat to the safety of himself and others who share the roadway which the state upheld and mandated a temporary suspension of his driving privileges.
Implications
All states have established policies for the identification of drivers with physical or mental impairments. Many states provide only for voluntary physician reporting; however, a few states have mandatory reporting laws. Common mental or physical impairments that medical providers are required to report include epilepsy and dementia however, like in John’s case, may extend to any physical, mental or emotional condition that could interfere with one’s ability to operate a motor vehicle safely.
Regarding insurance practices, John’s carrier received a notification through a national database that his license has been suspended. This prompted his company to investigate and obtain a signed exclusion form. The exclusion allowed for John to continue to insure his vehicle with the company, but he was not allowed to drive until his license had been reinstated. The exclusion not only prohibited John from driving, but if he should receive any citations or become involved in any accidents while the exclusion was in force, the policy would be void.
Catch-22
The Americans with Disabilities Act (ADA) of 1990, prohibits the discrimination of people with disabilities and pertains many aspects of today’s society (including auto insurance). Consequently, insurance companies are prohibited from denying those with disabilities coverage and from imposing higher premiums than necessary.
However, as previously noted, the DMV in each state, has guidelines which establish who may or may not be considered competent to hold a driver’s license in that state. If state’s guidelines should deem anyone temporarily or permanently unfit to operate a motor vehicle safely, they may revoke driving privileges. It is at that point that an insurance company may intervene, to limit their risk.
On average, disabled individuals pay roughly $700 more per year for auto insurance coverage, than their healthy counterparts. How is this possible? Insurance companies base their rates on risk and while a carrier may not charge additional premiums to those who are disabled, they CAN charge for additional coverages a disabled person may require. Such coverages include: adaptation coverage, mobility insurance and equipment insurance.
Vehicle adaptations such as after-market equipment installed to make it possible for a disabled driver to operate a motor vehicle. Many insurance companies require that such modifications be insured at a different rate to ensure the vehicle is adequately covered at the time of a loss. In the event of a loss, obtaining a rental vehicle with the proper modifications for a disabled driver, may be difficult to come by. It is for these instances, some companies offer mobility insurance, as an additional coverage.
Additionally, someone with a medical condition may need to transport medical devices such as oxygen tanks, wheelchairs and other necessary equipment that would not otherwise be covered by a standard auto policy, but instead by optional, equipment insurance.
Conclusion
Just when we think we have covered our bases, asked the right questions, compared coverages and secured the best policy to suit our needs, life happens.
Unexpected medical conditions, like that of John’s, or simple oversight regarding our current health situation can result in restrictions, a void or lack of adequate auto coverage. John’s driver’s license was ultimately reinstated in his state after six months of continued medical monitoring. He was also able to submit a medical statement and a copy of his reinstated driver’s license to his insurance company to have the driver exclusion removed from his policy, without further consequence.
While it is unlawful for insurance companies to discriminate against those with a medical condition, they can restrict, alter or offer additional coverages in some instances. It is always important to discuss such concerns with a licensed agent regarding state laws and different policy options your insurance company may offer surrounding medical conditions.
