How Surcharges Affect Auto Insurance 

How do surcharges affect my auto insurance?

When you’re behind the wheel, every decision counts. In the aftermath of a car accident, if you’re found at fault or have been ticketed for a driving violation, you might find your insurance premiums climbing.

This increase may come in the form of a surcharge, an additional fee that insurers add to your policy to account for the heightened risk of insuring you.

What Is an Auto Insurance Surcharge?

A surcharge is a fee your insurance provider may add to your premium after incidents that suggest risky driving behavior, such as at-fault accidents or moving violations such as speeding or DUI. These incidents signal that insuring you could lead to more claims or losses, prompting the surcharge. The criteria for these surcharges can differ depending on state and insurer, making it crucial for policyholders to understand how their locale and provider impact these situations.

After a surcharge, your auto insurance premium will increase, depending on your insurer’s policies and the severity of the incident. More severe incidents typically result in higher surcharges. However, the specifics, such as the duration of the surcharge and the exact financial impact, differ widely.

Surcharges are temporary but can significantly affect your premiums for a period. The length of time a surcharge remains on your policy is influenced by factors such as the nature of the surcharge and your insurer’s policies. During this time, experiencing another incident can compound the surcharges, further increasing your premium.

How Can You Avoid Auto Insurance Surcharges?

The most effective way to avoid auto insurance surcharges is by practicing safe driving. Additionally, some insurers offer accident forgiveness, which can mitigate the impact of a first accident on your premium. Despite our best efforts, accidents can still happen, underscoring the importance of understanding how such incidents affect insurance claims and premiums.

For those facing a surcharge, it might seem like a tough financial break on top of an already challenging situation. However, it’s helpful to remember that surcharges are not permanent and typically won’t cause an excessive increase in your premium. While it’s not usually possible to remove a surcharge once it’s been applied, there are strategies to save on your policy in the meantime.

Your agent can help you understand surcharges that appear on your auto policy. They can also assist you in shopping around for favorable car insurance rates.

Contact Us

Contact Crume-Evans Insurance in Kokomo , Indiana, to start comparing personalized auto insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.