Your Car Insurance Premiums Will Go Up As a Consequence of These 3 Things



Posted: Tuesday, December 07, 2010

by Eddie Smith
Eddie Smith

Have you ever wondered what can make your car insurance premium to increase? Occasionally many of us do foolish things which can make our lives complicated and ended up costing an arm and a leg. When it comes to car insurance, 1 mistake can damage a spotless driving record and put you in the high risk driver category.

1. Causing a car accident

Clearly, not really a big surprise. In most cases, if you cause a car accident you will have to pay additional insurance charges. For the 1st accident the sum may be anything between 10%-35% of the value of your insurance plan. However,if you are at fault in a second accident, the surcharges may possibly go up to 150%. It is usually an excellent idea to know what the surcharge schedule of your insurer is in advance. Having one more driver on your insurance plan, that has a poor driving record, may possibly raise your monthly premiums substantially.

2. Getting convicted for a driving offence

As previously point out, your driving record is extremely important. Starting from speeding tickets, all the way up to Driving while intoxicated - the effect on your car insurance can only be damaging. What the majority of drivers don't know is that its a punishable offence to operate a vehicle uninsured. In many states, if you are caught driving with no insurance or Dui, you will be instructed to show a prove of financial responsibility for a period of time, generally two to three years. Its often called SR22 Insurance. What this means is that your or your insurer will have to submit a SR22 Form to the local authorities, in any other case your license won't be reinstated.

3. Acquire a vehicle with a terrible claim history.

It's obvious, the type of car you have plays a huge role when car insurance premiums are determined. A common mistake is to think that claim history is only associated with a person. The fact remains that these days, insurance carriers have a claim history for each make and model. Its common sense to thinking that fast cars have worse claim history than SUVs for instance.

Having said that, you should be aware that Hummers, Audi A4 and Mercedes AMG are at the top of the "bad cars" index. As a rule of thumb, before choosing new or used car, always check what the insurance will be first. Often the quotes you obtain may be unbelievable.

To sum up, if you're serious about obtaining affordable car insurance - drive carefully, pay attention to the car you drive, comapre insurance quotes and don't drive uninsured. The last thing you need is having to search for SR22 insurance quotes.
This Article has been viewed 280 times. (Not updated in real-time.)
No comments yet.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.