What is a surcharge?


What is a surcharge?

The financial term of the day is: "surcharge."

When a crash is your fault, or if you get a traffic ticket, your auto insurance company will not be happy. Typically, a surcharge, or additional cost, will be tacked on to your premium to reflect the insurer's perception that you're a bigger risk.

Cause an accident or break the traffic laws and it will cost you, probably in many ways -- including with a surcharge added to your car insurance bill.

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