5 Car Insurance Terms That can Scare you Half to Death

Written by Mike

When buying car insurance there are some terms you just don’t want to hear. There are some terms that will immediately bring fear into your mind, knowing that you could be denied coverage or forced to pay a higher than average premium.

Here are five terms that you never want to hear when purchasing a policy:

1. SR-22

If you are seen as a high-risk driver, you may be required to complete an SR-22 form. There are many situations that can lead to this, such as driving without insurance or being convicted of driving under the influence.

If you are required to prove that you have insurance, your provider can file this document on your behalf with the state. Unfortunately, high-risk drivers find it more difficult to purchase coverage. Even if they do find a company that will insure them, the premium is going to be much higher than average.

2. Surcharge

Did you recently cause a traffic accident? Were you recently pulled over for speeding or another moving violation? If you answered yes to either of these questions, you may be hit with a surcharge.

In short, this is a premium increase that you are expected to pay for a specific length of time.

Although this is common in the situations described above, if you have a long history of safe driving your car insurer may let you slide the first time around. Remember, it never hurts to ask (or beg).

3. Cancellation

Is there anything worse than hearing that your car insurance has been canceled? In this case, your policy is gone and you are now forced to find another carrier that is willing to do business with you.

Generally speaking, a cancellation signifies high-risk. Your insurance company is no longer willing to insure you due to your past mishaps on the road.

Of course, there are other reasons for a cancellation including: lying on your application, suspended license, or not paying your premium in full and/or on time.

4. Teen Driver

Every teen looks forward to obtaining his or her driver’s license. However, the same cannot always be said for their parents.

Not only do parents worry about their teen when they hit the road, but they know that their insurance premium is going to increase. Your child does not have to be a poor driver to cost you a lot of money. Instead, they are seen as a risk due to their age and inexperience. Subsequently, the cost of insurance goes through the roof.

5. Claim

Making a claim is never fun, regardless of who was at fault. When you find yourself in this position, it means that you are going to spend a lot of time on the phone with your agent. On top of this, you can expect to be without your car as it is being repaired.

With any car insurance claim, the best thing you can do is let your agent take the lead. They have experience dealing with every situation imaginable, so make sure you follow their advice.

The longer you avoid these five terms the better off you are going to be.

This entry was posted in Auto by Mike.