Know Your Auto Insurance Surcharge Schedule
When buying car insurance, drivers tend to look at price, reputation, and coverage. But one aspect of the plan that is often overlooked is the auto insurance surcharge schedule. Surcharge schedules are predetermined increases to your monthly insurance premium which are applied after you have been in an accident and filed a claim. Surcharge schedules change vastly from company to company and state to state, generally ranging between a 20 to 40 percent increase on the base rate. Knowing your surcharge schedule ahead of time can give you a much better idea of what type of increase to expect. Our team of auto repair experts are here to give you the low down on how surcharge schedules will affect your wallet after an accident.
Surcharge Schedule – Doing the Math
Although insurance companies are required to disclose their surcharge increase rates, that doesn’t make calculating how much you will owe a sure science. Your age, driving history, and risk category all play a role in determining how much your insurance will increase after an accident. If you have bought a new car or are changing risk categories due to a birthday, you could be looking at a steep increase when it comes time for renewal. Be sure to consider all possible factors when running the numbers.
Accident Forgiveness
Although not an industry wide practice, some companies do provide their customers with a one-time pass for the first accident. Generally you must retain the same insurance without having an accident for several years to qualify, but it is still a great idea to consider this when choosing a policy. It could end up saving you big bucks in the long run.
What to do While Shopping
When looking around for policies, be sure to ask the company for a copy of its surcharge schedule. Although low monthly premiums might make a plan appear to be a great deal at first, a high surcharge rate can leave you at the mercy of the insurance company if an accident does occur.
Also, when deciding on filing a claim or not, it is worth noting that while your insurance policy may technically forbid it, sometimes paying out of pocket for repairs might be a better financial decision in the long run. Having a good idea of your surcharge schedule will help you make that decision if the time comes.
How to use this information
At Accurate Auto Body, we have only the best auto repair technicians and can work with your insurance company to get your car fixed. If you are in an accident, be sure to give Accurate Auto Body a call at 303-344-2122 or contact us for more information and we will be happy help!
How much has your premium increased after an accident due to surcharge schedules?
