Once a valid auto insurance policy has been purchased, there are still a number of issues that can arise which all road users should be aware of…
6 – Increases in Auto Insurance Rates
There is very little by the way of strict legislation to determine how much extra your carrier can charge in relation to auto insurance rates in the wake of a road traffic accident. This means that some auto insurance companies can double or even triple their premiums as a means of minimizing any future risks and recouping their previous expenditure.
Thankfully, the vast majority of auto insurance carriers adhere to the recommendations of the Insurance Services Office and under their Accident and Conviction Surcharge Program, auto insurance rates can increase to between 20% and 40% of their current base rate after the first ‘at-fault’ accident. Qualifying for accident forgiveness can be a great way to alleviate these added costs.
7 – Usage-Based Auto Insurance
Usage-based auto insurance allows road users to purchase coverage that is determined by the amount of mileage they cover. This particular form of auto insurance can be ideal for retired drivers or those who have decided to reduce the use of their own vehicles to participate in car pool schemes or to use public transport.
Motorists initially experienced usage-based auto insurance through Progressive but more and more auto insurance companies are now offering their own versions of this cost-effective coverage. Savings of up to 30% can be made on the price of an annual policy and additional low-mileage discounts may also apply.