Rate Raising Automobile Insurance Mistakes

Failure to report a crash In a Timely Fashion

Accidents and Speeding

Being convicted of driving under the influence

Buying a new or expensive car for a teenager

Having a Low Deductible for Physical Damage Coverage

Driving without insurance

Failing to report a claim promptly can be costly.  It is extremely important that you report an incident to your insurer promptly.  Your contract states that Failure to comply with this requirement and your other requirements after an accident or crash or loss allows the company to deny your claim!

How much time do you have to report an auto insurance claim?  The circumstances of the collision and the legal jurisdiction can also impact the answer to this question.  However, if you report an accident or crash within 24 to 48 hours you should have no problems.

Although you can file a claim long after a day have passed and possibly still be covered, why risk not being covered? The longer you wait, the harder it will be to find witnesses and to find witnesses that remember what happened.  The physical evidence of the crash may also be compromised if you wait too long to file your claim.

Having an incident or getting points on your license is a great method for raising your rate.  Your car insurance carrier wants to insure safe drivers and will offer lower rates for those who cost them less money in claims and those who are likely to cost them less in claims.

Not only is an accident likely to increase your costs for insurance, it could dramatically reduce the quality of your life if you are hurt seriously.  Be a safe driver, pay less and live longer.

A Driving While Intoxicated conviction will have a big impact on your automobile insurance rate.  How long can a DWI affect your insurance rates?  As long as 10 years!  Although the major impact on your rates will be over in 2 or 3 years, you may not qualify for the best rates for as long as 10 years.

How much does a new teenage driver raise auto insurance premiums? A lot, but the rates will be even higher if you get him or her expensive vehicle that requires physical damage coverage.  Sporty fast cars aren't such a good idea either.  

If you have a teen driver, make sure that he or she takes an approved drivers education course.  Most insurance companies will give you a good discount if your child passes such a course.

Physical damage coverage is also known as collision and comprehensive coverage.  Collision and comprehensive insurance are optional if your vehicle isn't financed or leased.  These are the part of your coverage that pay you for damage to your automobile.  Since the absence of these aspects of your policy don't affect payments to others you might get into a crash there are no state mandates regarding them.

If you own your vehicle outright, you can decide to accept the risk that you will need to spend your own money to replace or repair your car and avoid paying for physical damage coverage.  

If you don't want to take the entire risk, but want to lower your costs, you can raise your deductible.  You can raise your deductible for either the collision section of your policy or the comprehensive section or for both sections.  This can go a long way towards lowering your vehicle insurance bills.

Driving your car or truck without auto  insurance can mean that you are forced to have your vehicle  insurance company file an SR-22 on your behalf.  This can be expensive.