4 Mistakes that Increase Auto Insurance Rates
It is illegal to operate a motor vehicle without insurance, but the cost of maintaining a proper policy can sometimes make it difficult for a car owner to keep their automobile on the road. Unfortunately, there are also several mistakes that can cause your premium to dramatically increase. Due to this, it is imperative to be aware of the risk factors so that you can avoid doing something that will make it impossible for you to afford insurance.
The following are some things that can drastically increase insurance premiums that should be avoided.
1. Receiving a Speeding Ticket
A single speeding ticket is not likely to have a major impact on your insurance rate, but you could find yourself dealing with sticker shock if you get several tickets or are pulled over for reckless driving. It is also important to note that switching to a sports car or moving to an area that has a higher vehicle theft rate can also cause your insurance premium to greatly increase.
2. Getting a DUI Conviction
Anyone who is convicted of a DUI can expect their insurance rate to skyrocket. In fact, your policy most likely has a clause built-in that enables your provider to double your premium or even cancel your insurance altogether if you get a DUI. Therefore, anyone facing a DUI charge needs to hire an experienced legal professional, such as Evan Levow, a DUI attorney from NJ, to help increase their odds of getting an acquittal. Keep in mind that working with a local experienced DUI attorney is your best bet because they will have a firm understanding of how these cases are handled by the applicable courthouse.
3. Making a Small Claim
If you are involved in a minor single vehicle incident that does not cause a lot of damage, you should carefully consider keeping this information to yourself. After all, each time you make a claim, your insurance rate will most likely increase. Because of this, it does not make sense to make a claim if the cost of repairs will not be much more than your deductible. For example, if your deductible is $500 and you have an estimate for $600 in damages, it might not be worth it to collect that $100 from your insurance company now due to the premium increase that you will be hit with at your next renewal.
4. Adding a Teen Driver
The younger a driver is, the more expensive it will be for them to receive insurance coverage. This problem will be exacerbated if you have full coverage on your vehicle. Instead, it is typically more cost-effective for a teenager to get a basic policy on their own inexpensive car. If this is not a possibility, you might need to consider making your teen wait to drive until they are able to pay for the insurance increase themselves.
Although there is nothing that you can do to avoid minor increases each time your policy renews, you can prevent yourself from dealing with an outrageously expensive premium by avoiding costly mistakes such as getting a DUI or several speeding tickets. Because of this, anyone who is currently facing these issues should get legal assistance to help prevent these violations from becoming a permanent part of their driving record.
Lisa Coleman shares some tips about ways a person can avoid drastic hikes in their insurance premiums. She recently read about how an experienced DUI attorney, such as Evan Levow, can help with the legalities when faced with such a charge in the state of New Jersey.
Photo Credit: http://www.flickr.com/photos/nateone/3606828527/
Category: Car Insurance
