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Car Insurance: Hidden Costscheap car insurance for young drivers 

When it comes to car insurance, we always want something we can afford without going too cheap about it. Since insuring your car can be costly, it is recommended that you shop around and compare the rates before you sign up for a policy. When you do shop for quotes, make sure that you pay attention to what they offer you. It is important that you look out for hidden fees as these costs can be something that makes your insurance premiums expensive. If you are interested to know what these hidden costs are, read the article below.  

The first is your car model. Yes, the type of car you have can have extra fees. Know that insurance companies have rating systems that bases various factors on your car. It could be how safety the car is, the cost of your car, the model and if there is a replacement price in case the car gets totaled. If the car you are driving belongs to a higher rating then yes, your car insurance charges will also be high. The best thing that you can do when you are shopping for a car is to find something that can help you get affordable rates. If you still don’t have a clue, then best to talk to an insurance agent and ask what car model he or she can recommend to you. This way you don’t have to pay expensive premiums. 

Another hidden cost is the Forgiveness Policy. Since accidents are unavoidable even to the most careful drivers, some insurance companies offer this policy. This policy prevents your policy from increasing after an accident. Forgiveness Policy is used by insurance companies when you have reported your first accident. This means that they can forgive your first accident and have your policy premiums rate stay on the same amount you are paying. This is a good thing to have since there are companies that will raise premiums even at one accident. Of course, this will also mean that you have to pay extra fees for this on your premium. So make sure that you know what Forgiveness Policy is all about. 

If you have added your teen driver in your policy then expect expensive add-ons. Since teen drivers are considered as high risk, your insurance company will charge more. However, you can add your teen driver on your policy after they have received their driving license and not before. This way you can keep your premiums at the same cost.  

Installment fees can also have hidden costs. This installment is a payment option that you can have for the insurance policy in parts or if you wish to pay them at once. It can be done monthly and you pay for the portion of your insurance coverage every month. But be aware that there are extra charges on this type of insurance policy payment. And these charges can cause you to pay more than actually paying your premiums as whole. So make sure that you are willing to pay the extra charges if you wish to have this option.

There are also other features offered by car insurance companies that you may not need. Check them first before you get your policy as they can add more charges on your premiums. If you don’t need it, don’t add it. This way you are only paying for what you really need.