You may spot a surcharge in your premium if you check your car insurance document. While insurance rates are likely to increase after a surcharge, you can alleviate some stress by familiarizing yourself with your insurer’s policies. Here, we’ll go through the car insurance surcharge.
What Is A Car Insurance Surcharge?
A car insurance surcharge is an extra fee your insurer includes in your monthly premium because of a violation. Your car insurance company temporarily increases your monthly premiums because of your risk. For instance, if you pay $50, you might pay $60 per month for car insurance with a surcharge of $10.
Why Is Car Insurance Surcharge
If you’ve noticed a surcharge on your car insurance premium, then it could be linked to the following:
- You frequently pay late
- You could have a lapse in coverage.
- Traffic Violations could lead to a surcharge
- You’re convicted of DUI/DWI Convictions
- You’re involved in Multiple At-Fault Accident
How To Avoid A Car Insurance Surcharge
Try practicing the following to avoid a car insurance surcharge.
- Drive more carefully
- Avoid traffic violations
- Pay out of pocket for minor car accidents
- Pay your premiums on time
How Long Does Can Car Insurance Surcharge Last?
A can insurance surcharge can last months to years. For example, a car insurance surcharge for serious incident – like an at-fault accident or DUI conviction could last several years, depending on your insurer’s policies. In contrast, a surcharge such as a lapse in car insurance coverage or traffic violation may last a few months.
