4 Ways Your Car Insurance Can Double (or More)

Car insurance is one of the most expensive aspects of car ownership in the United States. It is mandatory in all 50 states, meaning you cannot operate a vehicle without insurance. This mandate is to better assist all drivers in splitting the costs of accidents; the result, though, is that a few people will bear a more significant burden. These people have been involved, usually, in one of the qualifying events below.

Having an Accident

If you have an accident, your car insurance will go up, typically whether or not you are at fault. Some insurers have begun offering accident forgiveness. However, to qualify for this, you must have a good driving record before the most recent accident. If you have been in multiple car accidents, you will likely see your insurance double or more after an expensive wreck. When you are at-fault in an accident, your insurance will go up even more. It is important to report an accident immediately. Take pictures of the accident site, and be sure to take witness statements if the other driver has admitted to fault in the accident. 

Getting a Ticket

A ticket is not always grounds for a big spike in insurance costs. A small speeding ticket, for example, may cause only a small increase in premium each month. The spike will usually occur because you have received multiple tickets. Once you accumulate a certain amount of points on your license, your insurance will sky rocket. If your ticket is for speeding in excess, you may see your insurance go up a lot due to the high number of points assessed from just one ticket. Opting for driving school to avoid points is often worth the extra effort. 

Adding a Driver

Adding a driver, particularly a young driver, to your insurance will raise your costs. Young drivers are very risky on the road. They are inexperienced in preventing accidents. Further, they are often risk takers, speeding or driving with distractions. If the other driver has been in an accident in the past, this will also increase your auto insurance. This is usually only a problem when you are adding a spouse to your insurance. If the spouse is more expensive to insure than you are, you can expect an increase in payments each month.

Drunk Driving Arrest

A drunk driving arrest is the single most expensive incident to car insurance. In fact, some insurers will not continue to carry your policy if you are arrested for drunk driving. When you are arrested, you will lose your license for a period of time in every single state in the country. This suspension goes onto your motor vehicle record, which an insurance company can check a few times a year. When the insurance company finds out, you will have to pay out a lot of money in increased premiums. In most states, before your license is reinstated, you will need to provide an SR22 form to prove you are insured. Even if your insurance company has not yet discovered your arrest, this procedure will alert them to the incident.  

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