San Leandro, CA San Mateo, CA Navigate Car Insurance Discounts and Surcharges

Everyone loves to save money on Car Insurance.  That’s what makes most TV advertisements so successful at getting people to shop for cheaper insurance.  We all know that cheaper is not always better and often it’s a lot worse.  The obvious way to get the lowest rates is not to drive much, be older than 25, and have a perfect driving record.  While this is great for some, it doesn’t mean you can control how far you drive especially if you need to not work from home AND some of us are under 25 years old AND maybe a few of us have speeding tickets or a minor fender bender on our record. While these are out of our control, what are the hidden things that may raise our rates?

Believe it or not, in some states insurance companies can base their premiums on credit scores, so any significant drop in your credit score can increase your premium by 50% or more.  A speeding ticket will definitely increase your rates, but it is less impactful – about 1/3 the cost of your credit score rating.  Car accidents are about double the cost of speeding tickets but the two biggest ways to increase your rates are – drum roll please….  Being convicted of a DUI will likely double your premium and you will have fewer insurance companies that will write your policy.  Last but not least, adding a teenage driver to your policy is the largest hit to your premium and in most cases is about twice the cost to insure an adult driver.

Next time you are considering shopping for your insurance, make sure to work with someone who understands your exposure, your opportunities, and your issues that may affect your rates.  Jumping on a cheap car insurance quote often means you bought less coverage or the disclosure of some of the surcharges discussed has not yet reached the insurer underwriting department.