Top Factors That Affect Car Insurance Rates (Part One)

Top Factors That Affect Car Insurance Rates (Part One)As most drivers know, there are multiple factors that contribute to your auto insurance premium rate. However, there are other elements that contribute to your price that should be considered when acquiring an insurance policy. Here are some other ways your Champaign IL Auto Insurance could be affected.

Hidden Household Members- While no one wants to volunteer to pay more for car insurance, it is critical to be forthcoming about any licensed teen drivers in your home. Your premium could increase if these hidden members are discovered via reports of newly licensed drivers without you notifying them.  Upon an accident involving the teen driver, your insurance provider could choose not to cover the damages as a result of your nondisclosure.

Letting Children Take Car out of State- It is easy to put off a phone call notifying your insurance carrier that your child has moved out of state and taken the car with them. However, insurance companies need to be informed of the location, circumstances, and risks of the vehicle it is insuring. Similar to the above scenario, if your child gets into an accident while out of state, your insurer could choose to cancel the policy due to concealed information.

Selling your Vehicle but Maintaining the Insurance- Informing your insurance company of a change of ownership is necessary to avoid the consequences. If your child is now the primary owner of the vehicle, they are required to purchase a policy. If your child is a minor, a parent or guardian will need to be added to the policy until they are 18.

Financing or Insuring a Car for Out of State Relative- This is a tricky situation as the insurance company typically requires the name on the loan to be the same name on the insurance policy. Your relative will need to request to be the “named insured” on the vehicle and find an insurance company that will permit her to insure a car that you own. Bear in mind, if an accident occurs without the insurance company being properly informed of these conditions, the accident could potentially not be covered.

Lending Out Your Car- If the housing of the vehicle and the primary driver changes, the insurance company needs to be notified. Find out if your insurance carrier will permit you to insure the friend or borrower on your policy. If not, he or she will need to insure the vehicle independently. Property Casualty 360 reminds you that if the borrower crashes your car, the insurance company may deny claims due to concealed information.

This list covers important factors that might be overlooked. In our next post, we will discuss the next five items that contribute to increased insurance premium costs.

At Myers Insurance Group, we understand that life’s circumstances are always changing. We specialize in offering custom insurance solutions to meet you and your family’s needs. For more information on our auto insurance policies, as well as other personal insurance offerings, contact our specialists today at (855) 534-5707.

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