How Insurance Companies Calculate Your Car Insurance Rate

Divorcees may be eligible to the same kind of premium refund as parents. If your ex-husband or ex-wife were built with a poor driving history and you have continued to pay for their old surcharged rates simply because they left all your family members permanently, bring this towards the immediate attention of your insurance representative. Visit him with all of pertinent and documented information so that your premiums can be reduced immediately while the application fast reply for a premium refund is processed.

california auto insurance quotesThe insurance companies hold these transgressions against our records for from three to live years, depending upon state law and individual company policy. A couple of transgressions or a combination of two or more moving violations and reported at-fault accidents may not only substantially increase your rates, but probably force you to stick to the same company, paying its high premiums, with the hope of not getting canceled and thrown to the assigned risk pool, where it could be even worse.

For example, suppose you’re a New York State driver who received a speeding ticket within a winter visit to Florida and that you then slid about the ice in route home, causing $2,000 injury to your car, which you reported to your insurance company.

For instance, if you were separated or divorced a year ago but forgot that you simply were still paying a $600 premium based on a two-car family, you would be eligible for an instantaneous rate reduction to $250 (depending on only your automobile) and a premium refund of $560. If you have neglected to inform your insurance company for 2 years, you’d be entitled to a $780 refund, etc.

If your insurance carrier procrastinates or refuses outright to pay the refund, your state insurance department (Consumer Affairs Division) can help you with a legitimate complaint. Being a last resort, there is a option of utilizing the matter to some small-claims court or to your attorney. See sample letters A and B. My adage, a clean record today keeps our prime rates away, is truer now than in the past. Since the coming of the computer age, all moving violations and reported accidents appear on your Department of Motor Vehicles (D.M.V.) Report even though they occurred out of state, while driving a borrowed or rented car, or while driving a business vehicle practical.