When talking about insurance, people think that the only payments they’ll have to make are the ones for premiums and out-of-pocket expenses. While these two different payments will make up a large portion of the payments you make, there are a few other fees and charges that might not seem immediately apparent at first. If you want to get a better understanding of the other possible expenses you should expect from your automobile insurance in North Carolina, read through the pointers listed below.
Other Fees and Charges in Automobile Insurance in North Carolina
- Surcharges or Extra Premium Charges – Your insurance agency probably has close a thousand different clients, that means there are more people just like you who are seeking to secure financial assistance for their vehicles. To be able to evenly spread out the costs of their services among their policyholders, insurance agencies often implement a surcharge on riskier clients. If you have a good driving record and no previous history of vehicular accidents, you can expect to be granted a lower premium rate. But someone with a bad driving record and involvement in an accident up to three years in the past could expect to be charged more.
- Mid-Policy Cancellation or Short-Rate Cancellations – This refers to the act of cancelling your policy before the term ends. Remember, your insurance coverage is a contract between you and your insurance provider, so if you decide to render that contract null and void before its actual end date, you will incur a fee. Usually, your insurance provider will retain 10% of the unearned premium in order to pay off the expenses it incurred as it granted you your policy. Many policyholders cancel their insurance coverage mid-term because they no longer own the vehicle.
- Installment Fees – Did you know that you can actually pay for your premium rate 100% right off the bat? While this option is available, many insurance buyers opt to spread out their premium payments throughout the given year. Although this might seem a little easier on the wallet, it’s important to note that opting for an installment plan will incur installment fees. This is to pay for the costs of sending you multiple bills throughout the year as well as processing multiple payments.
- Fees for Insufficient Funds – If you paid with a cheque, a credit/debit card, or an electronic transfer and your bank rejects the transaction, be prepared to pay a fee for insufficient funds. Whenever you make your payments, ensure that you’re bank isn’t in a maintenance period or that you have enough in your account to pay for your premium to avoid these extra automobile insurance in North Carolina fees.