How Long Do You Have to Pay Surcharges on Automobile Insurance?
If you are paying high rates for your car insurance, surcharges may be partly to blame. Many insurance companies impose a variety of surcharges on auto insurance policies – these can dramatically increase how much you pay each month. How long do you have to pay surcharges on automobile insurance?
Driving Record Surcharges on Automobile Insurance
One of the most common surcharges imposed by insurance companies is the “driving record” surcharge. When you purchase a policy, your insurance company reviews your motor vehicle report, and calculates a surcharge based on the accidents and violations that appear. Most companies only use a three year history when calculating this surcharge – after that, your rates will go down. If an accident or violation drops off your record before the three year period, your surcharge will be adjusted at your next policy renewal.
Poor Credit Surcharges
Another common surcharge on automobile insurance is a “credit surcharge.” If you have a poor credit score, you will typically pay more for car insurance. As your credit score improves, the amount of this surcharge will decrease. Also, you can lessen the impact of this surcharge by identifying erroneous information on your credit report, and having it removed. Otherwise, you will continue to pay the credit surcharge until negative items drop off your credit report.
Other Surcharges
There are several other surcharges on auto insurance that are frequently assessed by insurance companies. If you use your vehicle for business purposes, travel out of state frequently, or drive to multiple job sites, your insurance company may charge higher rates. You will continue to have to pay these surcharges until you no longer engage in the activity. For example, if you change jobs and start driving to only one job site, your insurance company will remove the surcharge. Otherwise, you will have to pay the surcharge for as long as you own the policy.
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