A car insurance document is filled with a lot of technical lingo. So, when your car insurance price suddenly goes up, you are usually baffled because you do not know why it went up. When your car insurance goes up, it is mainly because of a surcharge, and this can come in from different places. In many cases, surcharges come in from accidents or damage that is your fault or any traffic violations that you have made. Not all the surcharges are the same, and if one applies to you, you can look up your car insurance policy to find it. Knowing what is a surcharge and how it is applied will help you to save more when it comes to car insurance.
Understanding A Surcharge
Often the term surcharge and penalty are used interchangeably. Therefore, if you are looking up your insurance policy, you can also look up for penalties in case you do not find anything under surcharge. Surcharge or penalty usually refers to an increase in premium if anything was done intentionally or while the car was within your control. For examples, traffic violations are one thing. People usually violate traffic laws while the car is under their control. So, when you have a traffic ticket, you need to pay a surcharge or a penalty. The higher price of the premium will be dropped once the ticket is cleared off. The surcharge or the extra money is charged to the policy.
The surcharge widely depends on what state you live in because the state laws will govern your traffic laws. The state fee is a requirement of the state and therefore, it is not under your control. In some cases, when the state is a no-fault state, then there is a surcharge for medical coverage. The no-fault laws exist only to avoid costly lawsuits.
Reasons for Surcharge
So, what are the reasons for which you may have to pay a car insurance surcharge? These will include traffic violations, accidents that are your fault, or in short, at-fault accident, late payment of the fees, lapse in coverage, bad insurance credit score, and state fees.
How A Car Insurance Surcharge Is Charged?
For a car insurance company to charge a surcharge, the company will first review your driving record. This is done when you purchase your policy first and then afterwards at regular intervals when you will renew your policy. Traffic violations like reckless driving, over speeding and at fault accidents will be taken as driving offenses and more these pop up in your driving record, the higher surcharge you need to pay. Some insurance companies will use their own recording device to track your driving skills and will provide you with surcharges when deemed necessary. Contact the Ingenie Customer service for more information.
If you think that the insurance company is charging you surcharge unnecessarily, then you should contact the insurance agent an immediately. If you want to keep your insurance rate to the minimum, then you must make sure that you need to pay no surcharges.