You get your car insurance paperwork in the mail and your old rate has gone up. What happened? Sometimes it has nothing to do with anything you have done. Insurance companies regularly adjust their rates according to overall losses. Michigan sees a lot of rate increases due to the MCCA fee. As more and more people file claims against the unlimited medical coverage, the charge for the coverage needs to go up to cover the costs. Sometimes your rate increase is directly correlated to something you have done. Check out the top five ways to make car insurance go up.
Cause an Accident and File a Claim: Some insurance carriers charge more for any type of claim filed. It is actually becoming more and more common to see comprehensive claims raising rates. Currently, it really depends on the insurance carrier. It is certainly good to know whether your insurance carrier surcharges for comprehensive claims, make sure to ask.
On the other hand, an at-fault claim almost always comes with a surcharge. It really does not matter how much your claim is for. A good thing to keep in mind is the surcharge is the same whether your claims is for $1,000 or $20,000. How much the surcharge is for an at-fault accident is very hard to determine. Your insurance agent may not even be able to tell until your insurance policy renews.
Get a Traffic Violation Ticket: Traffic violations can have a big impact on your car insurance rates. The bigger the violation the bigger your increase. Expect a minor violation to stay on your record between two to three years. A major violation such as a DUI can cause your policy to be non-renewed. At that point you need to start shopping for an insurance company which covers high risk drivers. Plan on paying a higher price for the same coverage too.
Have a Lapse in Coverage: Letting your car insurance lapse is always a bad idea. In Michigan,any period of lapse is not good. If you are within thirty days of a lapse, call your insurance carrier and request to be reinstated. You may be required to pay a small fee along with a couple months worth of payments. If you are over thirty days of a lapse, you will most likely be considered high risk. You will be charged a higher rate for six months to get your preferred driving status back.
Make a Late Payment: Paying car insurance late usually means you will be charged a late fee. It can be a surprise to get your insurance payment in the mail and see a $10 increase. If you paid late last month, the late fee is added onto the following month. $10 is an example, check with your insurance agent to see how much a late fee costs.
Move: A lot of people are shocked to realize the difference in auto rates based on where you live. Moving can move your rates up or down depending on where you are relocating. Moving from the outskirts of Grand Rapids to the inner city of Detroit could be a large difference in premium. Moving out of the state of Michigan would most likely reduce your rate greatly because of Michigan’s expensive unlimited medical coverage. Prepare for changes in car insurance premium if you are planning on moving.
Knowing what causes insurance rates to go up, can help you prevent it from happening.
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