Top Reasons For Having Your Premiums Increased
Car insurance is an expensive burden, but if you want to stay legal, you must ensure proper financial responsibility. Having your premiums increased upon renewal is an unpleasant surprise. But there are reasons why you got there. Check the following list with top reasons for having your premiums increased and try to avoid the following scenarios. Furthermore, you can shop around and get free car insurance quotes online from our website. Here are the hypothetical scenarios:
- Inadvertence discovered by car insurance company. Misleading an insurer is a risky move that can result in paying huge premiums or being dropped. Some people give out a different address or conceal previous driving records that include accidents, trying to get a lower premium quote. This technique often works because the premium is contingent upon factors such as location, driving record and credit score in some instances. When discovered, you will be penalized.
- Being involved in an accident. Filling a claim and asking for reimbursement money costs the insurance company. There are several hypothetical cases. When you are the at-fault driver, your premiums will increase certainly and they will increase drastically upon next renewal. But even if you are not the at-fault driver, your premiums may suffer a change. This happens when you make multiple claims in a short time.
- Coverage lapses. Letting your policy expire and not renewing the term is a big and costly mistake. However, if you notify the insurer quickly about policy’s expiration, there are many chances it will be reinstated without any penalty. Insurance companies do not like persons who do not pay their debts in time. They will also be more reluctant when dealing with an applicant known to have coverage gaps.
- You no longer have access to special deals. Well, it is quite logical to have your premiums increased after your special offers and benefits expire.
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