What is a car insurance surcharge?

How long will a surcharge be on my policy for? My insurance agent mentioned a surcharge on my policy. I'm not exactly sure what that means.

Answer provided by
Emily Maracle
Answered on Jul 06, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“A surcharge on your car insurance policy often relates to a ticket or violation.
If you’re required by the state to have an SR-22 or financial responsibility filing, this can also add a surcharge to your policy.
Another common surcharge can be from a vehicle that is salvaged or has a rebuilt title.
Surcharges are added due to the risk that an insured may be and the possible claims they may submit. Car insurance carriers will need to charge more as insurance is paid out of a communal pool for policyholders.
You are considered higher risk if you have:
  • a bad driving record
  • filed a lot of claims
  • a suspended license
Not every company has surcharges. You can confirm with your agent what the surcharge is for. From there, you can decide whether you’d like to look at other carriers.”

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