11:07 16 July 2013
A study conducted by Moneysupermarket.com publicized that marring your driver’s license with a DUI offense can remarkably drive up one’s car insurance annual premium.
Using this premise, a 50-year old offender could see a 121 per cent increase while those in their 60’s could be slapped with 100 per cent increase. The increased penalties depend on the driver’s age with younger drivers being penalized higher.
Drinking and driving is dangerous and it could also lead to expensive fines, driving suspension or ban, or possibly jail time. Upon renewal of the car insurance, insurance providers will provide coverage but at increased premium.
Each insurance provider uses its own method of calculating their premiums for each type of customer. By and large, there are common indicators used by all providers to account for the rates. Some of the factors that could affect the insurance premium are:
The risk steps up for every driving violation and accident the driver incurs. The insurance providers use their established risk assessment indicators to predict future claims, which include accidents, traffic violations and theft to be able to provide the correct rate for each insured risk.
You do not have to pay for unnecessary coverage such as buying a comprehensive coverage for an old vehicle. Look at your deductibles. Opt for higher deductibles as this will lower the premium.
Being a prompt payer will also contribute to lower premiums.
Whatever factors, terms of coverage, exclusions are indicated in the policy, everything should be read and understood so you can do the necessary steps to lower or at least maintain your car insurance premium come renewal period.
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