<p>Is premium increase and surcharge the same thing? I was in an at fault accident about 4 years ago, on the way home from the doctor and felt like black out for a couple of seconds and got into an accident, first in 20 years of driving. My car policy premium increased the year after the accident, and continued for 3 years (including the most recent renewal). Will the additional premium stop after a number of years or stay forever? Is this additional premium considered a “surcharge”?</p>
<p>My son is 24 and is covered under our policy, he recently was involved in an accident, we are worried that insurance company may drop us at the next renewal. Also, is there an age limit on how long a child can stay on parents’ policy?</p>
<p>The surcharge lasts for a set amount of time after an accident or moving violation. Some companies have it last 3 years while others see, to have it last 5. If the accident isn’t your fault, it usually doesn’t increase premiums. Specific Qs about your policy can be asked of your company or insurance agent, anonymously if you’re afraid they may raise your rates. You can also call your state insurance commissioner. We put our kids on their own policies just because it seemed prudent. This way, even tho their policies are higher, accidents or moving violations only raise their rates, not everyone’s. </p>
<p>Few years back, D1 got into a car accident and H had few moving violations. Our insurance premium went up quite a bit. My insurance agent told me that we could lower our premium if we took safety driving course. In our state we were able to take it online. You can google to see if it is possible where you live. The course was very easy, but time consuming (few hours). Upon completion of the course, we were given a certificate (number). Our insurance premium came down to pre-accident(s) range. You may want to check it out.</p>
<p>Sometimes rates just increase because the carrier realizes they aren’t making enough profit to mitigate their losses. This happens for seemingly no reason. A surcharge is usually a % but is sometimes a flat amount added because there is something especially risky about you-- in this case it’s your accident. Usually the surcharge amount shouldnt be going up every year, normally it would be going down or staying the same until your losses fall off unless you have had additional losses (or unless your carrier is mean!), so if your rates are going consistently up and up and up I would shop. I would shop anyway, if you can stand it you should shop every year or any time anything changes. A loss surcharge usually lasts 3 years, sometimes 5. More than 3 losses in that time period, or fewer if the losses are especially bad, puts you at high risk of getting non-renewed. YOUR loss should be falling off in a year or two as you’re nearing 5 years, and if your ins company is still charging for it you might be able to get a lower rate now with somebody that only considers losses within 3 years, but now you have your S’s loss so that messes things up for you. If his loss was a small one, you might still be better off. </p>