WELCOME
Letter from the CFO
Consumer Services Helpline
Service Offices
SiteMap

COVERAGES
Basic Insurance Requirements
Optional Coverage
Special Cases
DHSMV Requirements

PREMIUMS
Factors that Affect Premiums
Discounts and Surcharges
Premiums

POLICIES
Cancellation, Nonrenewal, Policy Transfer
Before and After Accidents

CONSUMER INFO
Selecting Agents & Companies
Protecting Your Privacy
Community Outreach Programs

Glossary

Discounts and Surcharges

Mature Driver

Drivers 55 or older may qualify for a discount by successfully completing an accident prevention course approved by the Department of Highway Safety and Motor Vehicles. To qualify, you must keep your driving record free of accidents and violations after taking the course. For more information, contact your agent and the American Association of Retired Persons (AARP) at 1-888-687-2277, or the National Safety Council at (630) 285-1121.

Retiree

If you have retired or otherwise do not earn wages, you may consider excluding coverage for wage loss from your PIP insurance.

Desirable Automobile

When shopping for an automobile, keep in mind that insurance companies usually charge higher premiums for autos that cost more to repair or offer less passenger protection from accidents. Companies may also charge more for vehicles that tend to cause more damage when involved in accidents. For example, insurers may charge higher premiums for certain sport utility vehicles (SUVs). Autos such as sports cars that are inviting targets for thieves also cost more to insure.

Younger Driver

It usually costs parents less to insure a teen-ager who occasionally drives the family automobile on their policy rather than buy a separate policy. (If the teen-ager is considered a primary driver of a vehicle, then the insurance cost will increase.)

A teen-ager who obtains a title in his or her own name may have to buy insurance under a separate policy. A young driver might qualify for reduced rates if he completes a driver’s education course and achieves a certain grade point average in school.

In some instances, a parent could still be held liable for damages done by the teenager even if the car is titled in the childs name.

Good Driver

Many companies offer discounts to policyholders with driving records free of accidents and violations for an extended period of time.

Restraint Systems & Anti-theft Devices

Companies may offer discounts for certain equipment such as anti-lock brakes, air bags, anti-theft devices or vehicle-recovery systems.

At-Fault Accident Surcharge

You may have an accident in which your insurer finds you at fault. In such a case, the company may decide not to renew the policy or to add a premium surcharge to your policy premium. The percentage of the surcharge is determined by the company’s underwriting guidelines and can affect the premium for three full years from the date it is first applied to the policy.