A car insurance surcharge can come from several different places. Not all surcharges are the same and you should be able to find out if a surcharge is on your car insurance policy. Knowing what a car insurance surcharge is will better arm you in the battle of fighting a possible discrepancy.
What exactly is a surcharge?
A surcharge usually refers to an increase in premium due to something within your control. Meaning the higher rate should go away once the surcharge drops off. Surcharge equals extra money being charged to your policy.
Depending on what state you live in, a surcharge can also refer to a state mandated fee. A state fee is not within your control and is a requirement by the state. No-fault states often pay extra for medical coverage and it is possible for the charge to referred to as a surcharge.
What causes a car insurance surcharge?
If you think your car insurance policy has a surcharge which should have dropped off or was not yours to begin with, contact your insurance agent immediately. The amount of a surcharge varies by occurrence, it adds up quickly over the course of a year. Surcharges can last for a few years or longer.
In order to get the best possible car insurance rate, you will want to avoid surcharges if at all possible. Keep an eye on your driving record and consider paying a small at-fault claim out of pocket. Make your payments on time and never let your policy lapse.
