Blog » Pay Per Mile Car Insurance

When it comes to paying bills like car insurance, everyone likes to know what to expect. But like life, sometimes there are surprises that can catch you off guard. If you’re going through your car insurance paperwork and see a higher premium, you think, “Why did my car insurance go up?!” The answer may or may not be clear-cut as there are many factors that affect your car insurance rate. Here we break down the top reasons why your car insurance increased.

Same safe driver, different roads

If you have a safe driving record with no speeding tickets or accidents, it’s easy to lament and wonder why did my car insurance go up? But if you moved, that could be a telltale reason why your insurance rates spiked. If you move from a small town to a big city, there are naturally more cars on the road and higher population density. 

Even one neighborhood a few blocks over may have a very different risk profile than another one. For example, if there are narrow, crowded streets that are packed with cars or there’s a higher likelihood of car theft, your insurance rate could go up

All of that points to one thing — more risk. So while your driving behavior has stayed the same, the roads you’re driving on have changed and the added risk is reflected in your insurance rates. 

Additionally, in some states, where you garage your vehicle is one factor that is used to determine your car insurance rate. 

Same driver, new car

Perhaps your driving has stayed the same, but you bought yourself a new set of wheels. Maybe you’ve splurged on an electric vehicle or a new convertible to live out your dreams of feeling free on the road. 

In this case, your new car purchase could be the culprit behind your higher rates. Your car might have the latest onboard technology and safety features. While this is good for you, if it needs to be repaired in the future, it can be costlier for the insurer. Insurers have to prepare for that likelihood, hence the higher insurance premium. Additionally, if you have an SUV or truck your vehicle could cause more damage to other vehicles which could also increase your rate. Plus, if your new car is a hot ticket item for car thieves and more likely to be stolen, that could impact your rate as well.  

Same roads, new driver

If your driving record is still spotless, but you’ve added a new driver to your car insurance policy, it’s likely your car insurance went up due to the additional risk. This is especially true if you add your teenager to the policy. 

Young drivers are just learning how to drive and have higher chances of being in an accident. According to CDC data, teenage drivers between 16 and 19 have the highest risk of getting into a car crash. Given the data, it’s natural that insurance rates would go up during this time. 

An accident or traffic ticket

Trying to figure out why is my car insurance going up can be a mystery sometimes. But the most common reasons include getting into a fender bender or full-fledged accident or getting a speeding ticket. 

Depending on the type of infraction and if you’re found at fault, your car insurance premium may increase when it’s time to renew your policy. 

A change to your policy

Have you changed your insurance coverage in some way? Maybe you switched from liability only to a full coverage policy with collision and comprehensive coverage, moved to a different neighborhood, or added a new driver. Any change you make to your car insurance policy can result in a price increase based on your risk profile. 

You qualified for a discount, but you don’t anymore

In certain circumstances, you may qualify for a discount and score a lower rate. You might not realize that the rate you have is based on the discount and because something in your life might have changed, you may no longer qualify for the discount. 

For example, if there’s a significant life change, such as a move or a divorce, your car insurance rate may go up. If you took a defensive driving course several years ago, you might be ineligible for that discount now. 

Changes at the state level

Each state regulates car insurance, and each state has its own coverage requirements. Sometimes there are particular things going on in your state that you have no control over that can impact your car insurance rates. 

Think of everything from natural disasters to insurance fraud and more, which could result in higher costs for insurers and may result in a higher rate as well. Each state also has minimum liability requirements and may have a no-fault policy or an at-fault policy when it comes to accidents. These variables can impact your car insurance rates. 

The bottom line 

Having your car insurance go up can be frustrating and annoying, especially if you’re unsure why. You might wonder why does my car insurance keep going up and think it’s something you did. But as you can see, even if you have a stellar and spotless driving record your car insurance can go up for many reasons that don’t have to do with you. Risk assessment and insurance are complex and it’s not as cut and dry as you might think. If you want a low car insurance rate and don’t drive that often, you can score competitive rates with pay-per-mile insurance with Metromile. Get a quote today to see about potential savings.

Whether you’re driving in bustling Seattle or somewhere a bit more remote and in nature, driving too fast in Washington can result in a speeding ticket. Once you see the lights flashing behind you and you get pulled over, an officer may have no mercy on your pleas for forgiveness. After getting the citation, now you have to worry about the speeding ticket cost in Washington and how it will affect your insurance. Read on to learn the cost of a speeding ticket in Washington and how it may impact you. 

How much is a speeding ticket in Washington state? 

If you get pulled over, your first thought might be “How much is a speeding ticket in Washington?!” Speeding ticket costs vary by state, and in Washington can depend on how fast you were going and how many miles per hour over the stated speed limit you were going. 

According to Washington Courts’ Monetary Penalty Schedule for Infractions, here are the base fines for speeding in Washington: 

For stated speed limits of 40 miles per hour (mph) or lower: 

• $43 if going 1 to 5 mph above the stated speed limit
• $48 if going 6 to 10 mph above the stated speed limit
• $63 if going 11 to 15 mph above the stated speed limit
• $83 if going 16 to 20 mph above the stated speed limit
• $108 if going 21 to 25 mph above the stated speed limit
• $133 if going 26 to 30 mph above the stated speed limit
• $158 if going 31 to 35 mph above the stated speed limit
• $188 if going more than 35 mph above the stated speed limit 

For stated speed limits of above 40 miles per hour:

• $33 if going 1 to 5 mph above the stated speed limit
• $43 if going 6 to 10 mph above the stated speed limit 
• $58 if going 11 to 15 mph  above the stated speed limit
• $73 if going 16 to 20 mph above the stated speed limit
• $88 if going to 21 to 25 mph above the stated speed limit
• $108 if going to 26 to 30 mph above the stated speed limit
• $133 if going 31 to 35 mph above the stated speed limit
• $158 if going 36 to 40 mph above the stated speed limit
• $188 if going more than 40 mph above the stated speed limit 

These are just the base charges, and there will likely be additional fines and fees tacked onto your speeding ticket. For example, the courts of Washington list an additional $48 fine for “Speed Too Fast for Conditions.” 

The ticket amount can vary within Washington by jurisdiction and if you’re speeding in a particular area like in a town street, school zone, or in certain hazardous weather conditions. 

For example, the Municipal Court of Seattle website lists speeding too fast and going 6 to 10 mph over the limit in a 40 mph or less zone as costing $139. In Seattle, going 11 to 15 mph over the limit in the same zone will cost you $169. In a zone with speed limits over 40 mph and going 16 to 20 mph over the limit will set you back $190, and in an under 40 mph area, that will go up to $210. 

In Seattle, speeding tickets can go up from there between $262 to $426. 

Source/credit: Municipal Court Seattle (pg 22)

So as you can see, the speeding ticket cost in Washington can start with a low base rate but go up with additional fees and fines and can be even more costly in Seattle. 

What should you do after getting a speeding ticket in Washington? 

After getting a speeding ticket in Washington, you need to take action within 15 days to avoid further trouble. If not, you could get hit with an additional fine of $52. You have three options with your speeding ticket:

1. Agree to the traffic infraction and pay the associated fine. If you’re in Seattle, you can pay for your ticket online. 
2. Agree to the traffic infraction and ask for a mitigation hearing to explain your case. 
3. Deny the traffic infraction and ask for a contested hearing. 

Once you select an option on your citation, you can mail it back with the funds or drop it off at the court in your district. 

If you fail to take action, you can have additional fees added to your speeding ticket and lose your right to a hearing. If you get too many speeding tickets, you could get your license suspended as well. 

Average car insurance rates after getting a speeding ticket in Washington

The state of Washington doesn’t use a point system for traffic infractions, but that doesn’t mean infractions won’t go on your driving record and affect your car insurance rates. 

According to financial site Bankrate, after getting a speeding ticket in Washington your car insurance rate could increase 10% to 19%. If you’re an 18-year-old with full coverage, you can expect a 10% increase in car insurance premiums at the time of renewal. If you’re a 40-year-old with full coverage, you can expect a 19% increase. 

Of course, this can vary by insurer and depend on your previous driving history as well. You may be able to go to traffic school to help minimize or avoid the impact on your insurance rates, if eligible. 

The bottom line 

If you get a speeding ticket in Washington, it’s important to tackle the issue right away. Don’t just keep the ticket in your wallet or dashboard and forget about it. If you want to take care of it and move on, agree to the infraction and pay the ticket. The speeding ticket cost in Washington can vary, so verify how much the total will be. If you want to explain your case or disagree with the decision, you can request a mitigation hearing or a contested hearing. 

If your car insurance rates increase after a speeding ticket when it’s time to renew you can shop around for other options. Metromile offers low-mileage drivers competitive rates. You pay gas by the gallon, why not pay for insurance by the miles? Using Metromile you can. Check out insurance that makes sense and get a free quote. 

​​Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

When you’re driving, you want to feel in control of your environment and your vehicle. Hands on the steering wheel, eyes on the road, moving steadily. So it’s no wonder that hearing loud noises and experiencing a shift in speed or movement can be jarring. If that’s the case, you might be experiencing a tire blowout. Read on to learn what you should do if you have a tire blowout. 

What is a tire blowout? 

You might be familiar with a flat tire, but a tire blowout is a different beast altogether and can be more dangerous and anxiety-inducing because of the noises and loss of stability that may be involved. According to the National Highway Traffic Safety Administration (NHTSA), “A tire blowout is a rapid loss of tire air pressure that can cause your vehicle to lose control.”

If you hear a boom or hissing sound, it’s likely you’re experiencing a blown tire and need to move to safety ASAP and remedy the issue. 

Why do tire blowouts happen? 

Tire blowouts can happen for a multitude of reasons. The most basic reason is poor tire maintenance, according to the NHTSA. If your tires are underinflated, not properly rotated, or there is an uneven tire wear pattern, you may be at higher risk for a blown tire. Some other common culprits can include:

• Hitting a pothole
• Heat, which expands air in the tire during the summer months
• Excessive weight in the car 

A tire blowout can happen at any time but may have an increased likelihood when you reach higher speeds on the road, like on the freeway. Since the freeway is the last place you want to have a blown tire, it’s crucial to know what you should do if you have a tire blowout. 

What should you do if you have a tire blowout?

Having a tire blowout can be sudden and scary due to the unexpected noise and potential loss of control. If you hear a loud noise and your surroundings are clear, assume it’s your tire and take a deep breath. When you take deep breaths, your parasympathetic nervous system gets activated, which can help calm you down. 

Taking a deep breath and remaining as calm as possible is key to avoiding a sudden overreaction which could be detrimental. You don’t want to hit the brakes hard during this time and instead take strategic steps toward safety to avoid an accident. If you’re dealing with a tire blowout, according to the NHTSA here’s what you should do:

1. Hold the steering wheel with both hands.
2. Maintain your vehicle speed if possible and if it’s safe to do so.
3. Gradually release the accelerator.
4. Correct the steering as necessary to stabilize your vehicle and regain control. Look where you want the vehicle to go and steer in that direction.
5. Once your vehicle has stabilized, continue to slow down and pull off the road where and when you judge it’s safe to do so.

When you’re safely pulled over and out of harm’s way, put on your hazard lights and call for help. If you have AAA or roadside assistance, you can get a professional on the way to help. Metromile customers can get additional roadside assistance coverage in addition to affordable pay-per-mile coverage. 

If you have a spare tire and know how to change a tire, you may be able to DIY it. However, be careful, especially if you’re on a busy road or freeway or in the dark. 

How to avoid tire blowout 

As noted above, the NHTSA explains that tire blowouts can occur due to underinflated tires or lack of proper tire maintenance. That’s why it’s crucial to check your tire pressure and rotate your tires on a regular basis. 

If possible, try to check these things once a month. You can check your owner’s manual to see your car’s ideal pounds per square inch (PSI). It’s best to check your tire pressure before doing a lot of driving, so check in the morning. 

Aside from proper tire maintenance, be a defensive driver and be on the lookout for potholes, big objects, or other harmful debris that can lead to a blown tire. Be aware that in excessive heat, your tires have a higher likelihood of blowing out. While you can’t control the weather, you can be aware and engage in proper maintenance so you’re prepared. 

Will my car insurance provider cover a tire blowout? 

Getting a blown tire can feel like an unfortunate incident. If you need to suddenly replace your car tire, it’s natural to wonder if your car insurance will cover it. It depends on the incident and your type of coverage. Typical car maintenance issues usually aren’t covered by car insurance. 

If you have collision coverage and the tire blowout is related to hitting an object on the road, you may be able to get it covered. But since you have to pay your car insurance deductible first, it may not be worth it. 

The bottom line 

Dealing with a tire blowout isn’t really anyone’s version of a good time on the road. But if you’re dealing with a blown tire, you can take the actions listed above to get it taken care of and move on. You may be able to get help from your insurance provider as well. Metromile offers roadside assistance as additional coverage on top of pay-per-mile car insurance. You can save by only paying for the miles you actually drive. Low-mileage drivers may be able to score serious savings by making the switch. Check your personalized quote with Metromile.

Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

When getting behind the wheel, it’s important to consider how the weather may impact your driving or the driving conditions that affect your safety. During the colder months of the year — when the air seems to pierce your face with its crispness — snow can fall and become a driving hazard. While snow may be beautiful to look at while you’re cozy next to the fire, it’s not really something you want to be driving in, especially if conditions are severe. But sometimes things happen, and you may find your car stuck in snow, unable to move. If you find yourself in this situation, here’s what to do beforehand and how to get a car out of snow.

How to prepare beforehand for driving in snowy weather 

If you live in a snowy climate (hey there, much of the East Coast and Midwest), it’s important to be prepared and drive with the right kind of tires. There are different types of tires available on the market but you still need something more than your standard tire. You need snow tires, to help you navigate icy and snowy terrain. 

Having a car stuck in snow may be due to having the wrong tires. It’s like trying to use a screwdriver when you need a hammer. You need the right kind of tool to help you deal with snow and drive safely. Another thing that can help is having a snow shovel in your trunk in the event you get stuck in snow. 

1. Remove snow surrounding the tires 

Figuring out how to get your car unstuck from snow requires identifying the problem first. In most cases, the primary issue is that the snow acts as a barrier preventing you from moving forward. 

The first step to getting your car unstuck is to remove the snow from surrounding areas of the tire (and this is why a snow shovel will come in handy!). Remove the snow in front of your vehicle and behind your car to make sure you have a runway to drive forward and back up if you need to. 

2. Be gentle with the gas pedal 

If your car is stuck in the snow, you may have the inclination to hit the gas pedal at full speed to get unstuck. That can leave you spinning your wheels, literally. In other words, it’s not a very effective strategy. While it may seem counterintuitive, be gentle with the gas pedal and slowly allow your car to go forward. 

3. Slowly move forward and back up 

When driving in snow conditions, you want to be mindful of your transmission and be delicate with your maneuvers. Put your car in drive with your foot lightly on the gas, then slowly transition and back up your car. Doing so can help shake off some of the snow stuck on your tires. 

4. Put snow chains on your tires 

If you have a car stuck in the snow, one remedy that can help is putting snow chains on your tires. These tire chains can be used in winter to help your tires improve traction in icy and snowy weather conditions. 

If you don’t have them, consider buying some and keeping them in your trunk along with your snow shovel. To learn how to install snow chains correctly and safely, you can watch this tutorial. 

5. Use various materials to boost traction 

When your car is stuck in snow, it’s difficult for the tire to get traction on the road to get moving. The good news is there are various materials you can use to boost traction. These items include:

• Cat litter (win for all the cat owners!)
• Dirt
• Sand

As you can see from this list, these materials are granular and can increase the traction under your tires. Place one of these materials underneath the tires. Then, slowly press the gas to see if you can move forward. If you need something else you might have in the car, you can try out car mats or cardboard you might have on hand. 

Also, if you’re thinking of using other materials to try and melt ice, think again. For example, some substances such as antifreeze or cleaning materials may be poisonous to animals and humans alike. On top of that, it could be illegal or hazardous to do so. 

6. Get a helping hand 

If you have passengers in the car or there are other people nearby, sometimes a little helping hand can go a long way. A little (wo)man power can help move your car and get it unstuck from the snow. 

You want to do this maneuver safely so make sure you’re in drive and put your foot gently on the gas (reverse would be a HUGE mistake!). Have the other people push your car forward to gain momentum. 

7. Release some air from the tires 

Learning how to get your car unstuck from snow requires some trial and error, and some options may work better than others. One option that may work is to release some air from the tires so they’re slightly deflated, in order to gain more traction. 

An important caveat: this is only a good option if you have a tire pump or can fill up your tires with air close by as it can be dangerous to drive on underinflated tires.

8. Get roadside assistance 

If you’ve tried the steps above and your car is still stuck in snow, you might need to call the professionals. That’s where roadside assistance can come in handy. Metromile customers with roadside assistance coverage  can get much-needed help in a bind. 

The bottom line 

Figuring out how to get your car unstuck from snow can be a daunting process. Though it can be some work, using these eight tips can provide a fix if you find your car stuck in snow. The most important part is to remain calm as possible and slowly and strategically maneuver the car. Lastly, you can see if you can get additional support from your car insurance provider. Metromile offers roadside assistance and coverage that can benefit low-mileage drivers. You pay gas by the gallon, so why not pay for the miles you actually drive? Get your quote today and learn about our various coverage options. 

​​Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

If you’re driving on the road, you want to keep pace with the flow of traffic. But sometimes, knowingly or unknowingly, you go faster than the stated speed limit in that particular area. In either case, the consequence can be the same — you may be hit with a speeding ticket. You can beg, cry, plead, or tell the officer you’re rushing to work. The officer may show some grace and let you off with a warning, but if not, you’ll have to deal with a speeding ticket. But then the questions start to arise. Do speeding tickets affect insurance? How much does insurance go up after a speeding ticket? In this brief guide, we break down what to know about speeding tickets and car insurance. 

Do speeding tickets affect insurance? 

It’s no secret that speeding tickets aren’t exactly cheap. The average speeding ticket cost in California could be several hundred dollars after fees and such for an initial $35 base fine. That’s not even close to some of the costs in other parts of the country (Virginia reportedly has the highest penalties, with citations that can cost upwards of $1,000!). 

But that initial sting of the ticket itself is just part of the overall financial repercussions. If you’re wondering, “Do speeding tickets affect insurance?” the answer is most likely “yes”. When you get a speeding ticket, you may get a point on your license, which is added to your driving record. If this is your first speeding ticket, you may be able to go to traffic school and get the point taken off your record without affecting your insurance. But that’s not always the case.  

A major factor in determining your insurance rate is your driving record, and that includes traffic violations like speeding tickets. The more tickets you have, the more likely your insurance rates will rise. 

Here’s how a speeding ticket may affect your car insurance: 

• Your car insurance premium may increase at the time of renewal.
• Rates could increase for several years. 
• Whether your rate increases can depend on the speed, location, and state. 
• You may lose out on a “good driver” discount or other relevant discounts.
• If your driving record has a lot on it and it’s pretty serious — and a speeding ticket is just the icing on the cake — it may be difficult to get car insurance from a private company. If that’s the case, you can see if your state provides government auto insurance. 

Why do car insurance rates go up after a speeding ticket? 

Your driving record helps insurers understand how much of a risk you might be on the road. And guess what determines your driving record in addition to accidents and minor fender benders? Yep, speeding tickets. 

Speeding is one of the leading causes of car accidents. So when you engage in this risky driving behavior, it’s natural for your insurance company to take this additional risk factor into account. If you rack up multiple speeding tickets, it can have a more significant impact on your rates. 

The (kind of) good news is that according to an analysis from The Zebra, speeding tickets are the least costly kind of traffic violations when it comes to insurance rates. But the potential price hike can still be significant. If you’re worried about how much does insurance goes up after a speeding ticket, on average, it’s $354 per year according to an analysis by financial site NerdWallet. Not exactly a small amount. 

The thing about speeding is that it’s not a black and white issue — a driver may be caught speeding a few miles over the limit or far past the limit. In other words, there’s a lot of room for nuance and going 5 to 10 miles per hour over the speed limit is different than going 25 to 50 miles per hour over the speed limit. 

The severity may be reflected in your speeding ticket and your car insurance rate hike. It all depends on how your state treats speeding tickets and the limits, as well as your car insurance provider. 

Each car insurance provider may treat a speeding ticket differently. While some companies only increase rates if a driver receives a ticket for going more than 15 mph over the posted limit, other companies may not increase the rate at all if it’s a first-time offense.

Of course, having multiple traffic violations, including speeding tickets can add points to your driving record. That may mean you could be at risk for sky-high insurance premiums. In the worst case, you may get your license revoked or suspended. 

Here’s where you can take a deep breath though — traffic violations don’t permanently affect your insurance rates. So if you think speeding tickets will be on your driving record forever and lead to crazy expensive rate hikes for eternity, think again. 

Most companies examine your list of traffic violations over the last three to five years when determining your rate, and once a ticket is removed from your driving record (this varies by state, but most states take away the points after three years), insurance companies can no longer hold the infraction against you (phew!). 

What can you do to lower car insurance premiums after a speeding ticket? 

If your primary concern is about cost it’s natural to wonder how much does a speeding ticket raise insurance? Just how much it increases can depend on your driving history and insurer, but there may be some ways to lower car insurance premiums after a speeding ticket. 

The first thing you want to do is see if you qualify for a defensive driving course so you can avoid getting a point added to your record. If so, then that’s a big win and can save you money in the long run. You’ll still have to pay for traffic school though and the ticket plus any associated fees. 

Next, commit to being a safe driver and be more mindful of speed while on the road. One speeding ticket isn’t the end of the world but racking up plenty more won’t do you any favors in the cost-savings department. 

You also want to see if the speeding ticket will affect your car insurance premium or not. If you have a good driving history and this is a one-off thing on a spotless record, your insurance company may not take any action. 

However, if your insurance company does raise your car insurance premium it may be for several years. Depending on the increase and your preference, it may be good to shop around and look at other coverage options. 

The bottom line

After getting hit with a speeding ticket you may worry and wonder how much does insurance go up after a speeding ticket?! It may be several hundred dollars, depending on your record, your insurer and if you can take defensive driving or not. Though it can be costly, a one-time thing is like a warning from the universe to slow down. 

Going forward, be aware of the speed limit in the area you’re driving. In the best case scenario, you won’t have a premium increase. If your car insurance premium does rise, look into getting other car insurance coverage. Low-mileage drivers can take advantage of pay-per-mile coverage with Metromile. You do things like pay for gas by the gallon. So why not pay for miles based on how much you drive? It’s car insurance that makes sense. Grab a complimentary quote with Metromile to see about potential savings.

Getting into a car accident and filing a claim can mean dealing with your insurance provider to cover costs as part of the incident. During this process, you may come across a funny word called “subrogation.” In this guide, we’re breaking down what subrogation in insurance means and how it works.

What is a subrogation insurance claim? 

If you’re dealing with a claim and see “subrogation”, it’s natural to wonder what is subrogation in insurance. According to the Merriam-Webster Dictionary, subrogation is “the assumption by a third party (such as a second creditor or an insurance company) of another’s legal right to collect a debt or damages.” (fun fact: this term was first used in the 15th century, notes Merriam-Webster). 

In other words, subrogation is the legal process that allows your insurance provider to act on your behalf to recoup costs related to an accident from a third party, such as another insurance company. 

When does subrogation happen? 

When you file a claim after an accident, your insurance company will work with you to determine who is at fault and what is or is not covered as part of the accident. If the other driver is at fault, your insurance provider can act on your behalf to recover costs from the other party’s insurance company. 

Let’s say you get into an accident where you’re not found at fault and need to make repairs and cover potential medical bills ASAP, but the process is held up with the other party’s car insurance. In that case, your car insurance provider will typically cover those expenses upfront to make the process smoother and more efficient. 

Subrogation will then occur and your car insurance provider will seek to recoup the expenses related to the accident, including the deductible, car repair costs, and medical expenses, if applicable. 

Through subrogation in insurance, you as the policyholder can file your claim and move on faster, while your insurance company does the heavy lifting to recover costs. 

Does subrogation occur when it’s not clear who’s at fault? 

Subrogation in auto insurance happens when your car insurance provider seeks payment for expenses already paid from the at-fault driver’s insurance company. So what happens if it’s not fully clear who’s at fault in the accident? While some accidents may have a clear-cut cause and party who is “at fault”, not all do. 

In this case, what happens next can vary by your car insurance policy as well as the state you live in. For example, you might pay your deductible, and your car insurance provider may pay out the remaining expenses. 

It’s also possible that your car insurance provider can go the subrogation route to recover some costs if you’re not 100 percent at fault. Through subrogation, it’s possible to get your deductible cost paid back as well on top of the other costs the insurer paid. 

How long does an insurance company have to subrogate?

The subrogation process can vary but largely happens between the two car insurance providers. Your car insurance provider supports you in your claim and through subrogation, they aim to get reimbursed for expenses when the fault is determined. It could take months or even longer to determine who is at fault in some cases, so subrogation benefits the policyholder and helps the insurance provider recover funds related to a claim. 

If you’re curious how long does an insurance company have to subrogate, it depends on the state’s statute of limitations. 

According to Legal Beagle, “When an insurance carrier or other entity pays a claim for an injured client that is not at fault for their injuries, the insurance company may then attempt to recoup payments from the party that is at fault for the incident. The process of recouping paid claims is called subrogation. Each state sets its own statute of limitations, indicating the length of time after an incident an insurance company may file a subrogation claim.”

Legal Beagle notes that most states have one to six years to file subrogation insurance claims. 

What a waiver of subrogation means (and what to be aware of) 

During the subrogation process, your insurance provider acts on your behalf to recover costs based on your claim from the at-fault driver’s insurance company. Your insurance company does the hard part, and you don’t have to think about it too much. 

But if the at-fault party would like to settle the claim with you directly and without insurance interference, then you’ll need to sign a waiver of subrogation. 

A waiver of subrogation is forfeiting the ability for your insurance company to recover costs. Because the other party wants to settle, a waiver of subrogation signs your rights away so that the insurance company doesn’t have any legal right to get reimbursed. 

Obviously, this is a pretty big deal, so it’s important to discuss with your insurance carrier before making any decisions or moving forward with a waiver of subrogation. 

The bottom line 

Subrogation insurance claims mostly involve your insurance provider, but it’s good to be aware of what this process is and how it works. It’s especially important to be mindful if you’re considering signing a waiver of subrogation. Be sure to stay in touch with your insurance provider if you have questions about your claim or if you’re thinking of settling and signing a waiver. 

If you want to check out different car insurance options, consider pay-per-mile car insurance, ideally suited for low-mileage drivers. Why pay more than you need to, when you can simply pay for the miles you drive? Get car insurance that makes sense and never pay more than you should. Get a quote for pay-per-mile coverage with Metromile today. 

​​Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

When you sign up for an auto insurance policy, an insurance declaration page will be included in your paperwork. But what is an insurance declaration page? It’s typically the first page of your policy and highlights important points about your coverage. It’s sometimes referred to as “dec” and can come in handy when you need to refer to your policy. Read on to learn how to read a declaration page and what it includes and what it doesn’t.

How to read your insurance declaration page 

Your insurance declaration page includes important information about your auto insurance policy. To read your declaration page, here is the typically included information. 

1. Drivers covered by the auto insurance policy 

Your declarations page lists the driver(s) covered by the policy. That should include you and anyone else who drives your car. 

2. The car insurance policy period 

When you sign up for a car insurance policy, there are effective dates that outline the term of your coverage. Typically, this is six months to one year. You can see when your auto coverage starts and ends on the declarations page, so you know when you need to renew your policy. 

3. Your car insurance premium 

When you sign up for an auto insurance policy, you typically need to pay a monthly car insurance premium or pay it every six months. In this part of the declarations page, you’ll see what is included in the premium as well as the overall total. 

4. The vehicles covered by your car insurance policy 

Your insurance declarations page also lists out the vehicles covered under your auto insurance policy. In this section, you’ll see the VIN, make, model as well as year for the vehicle that is covered. 

5. The type of auto coverage you have 

You typically need a minimum amount of auto coverage in each state. On the declarations page, the type of auto coverage you have will be outlined. Make sure you have the right car insurance coverage for your particular needs and budget. For example, Metromile offers the following types of auto insurance coverage, as well as any other state-mandated optional coverage(s):

• Comprehensive coverage
• Liability coverage  
• Collision coverage 
• Uninsured and underinsured coverage
• Personal injury protection
• Medical payments insurance 
• Roadside assistance insurance 
• Rental car insurance   

6. Any loss payees 

If you’ve taken on car financing and secured an auto loan for your car, the lender is typically listed as the loss payee on the declarations page. In this section, the loss payee is outlined, such as a bank — and includes relevant information such as address and contact info. 

7. Your car insurance deductible 

Also included on your insurance declaration page is your car insurance deductible. Your deductible refers to how much you pay out of pocket when you file a claim before your insurance kicks in. Your deductible amount can vary based on your coverage. 

8. Your coverage limits 

Your auto insurance coverage limits are also broken down on your declarations page, so you know the maximum amount that is part of your policy. Depending on the type of coverage you have, you might see the maximum amount your insurer will cover in case of bodily injury or car damage. 

9. Any discounts you qualify for 

Your car insurance provider may offer some discounts for things like security and safety features (such as anti-theft devices) or for being a “good driver.” Any discounts you’ll qualify for will also be listed on the declaration page. 

What your insurance declaration page doesn’t cover 

Your insurance declaration page is designed to be easy to read and accessible so you can see the most important parts of your coverage. This page can include what’s part of your policy but may not outline what’s not covered and may not provide further definitions of the terms listed. If you have questions, you can contact your insurance provider directly or look at the rest of your insurance paperwork. 

When to use your insurance declaration page 

Your insurance declaration page can come in handy in a number of cases. For example, if you want to review the details of your policy, you can do so easily on the declaration page. If you’re on the lookout for a new vehicle, you typically need to show proof of insurance. In that case, your insurance provider may send the dealer your declarations page as a way to confirm that you’re insured and actively covered. 

The bottom line 

Your insurance declaration page is a nifty outline of your auto insurance coverage that can come in handy in a variety of situations. It’s also useful to reference if you’re searching for new auto coverage. It outlines all the essential terms and rates, so you can make an informed decision when looking at new quotes. If you’re a low-mileage driver, pay-per-mile car insurance is likely your best bet.

You pay for gas by the gallon, why not pay for auto coverage based on the miles you actually drive? Using Metromile, you get a low base rate and only pay several cents per mile. Get your free quote for comparison shopping today. 

​​Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

After going through your expenses, you might notice some trends. Your highest expenses are likely rent/mortgage, food, and transportation costs. Among transportation costs is your car insurance premium. If you feel you’re paying too much for car insurance, you might be trying to figure out how to lower your car insurance cost. If you want a lower rate for your car insurance premium, here are 10 tips to get started.

1. Understand your current coverage

The first thing you want to do is understand your current car insurance policy. You want to see where you currently stand, so you can evaluate whether the coverage and limits you originally purchased are still the right fit for you. 

You might have purchased your policy when your lifestyle was different. For example, if you are now driving an older car, you might not need as much coverage as when you had a newer model vehicle. Once you understand your current coverage, you can make an apples-to-apples comparison with other available policies to make a more informed financial decision.

2. Switch to pay-per-mile car insurance 

In many cases, if you have traditional car insurance, you pay a flat premium per month (or per term). This can mean that if you don’t drive that much, you may be overpaying for coverage. Car insurance is based on numerous factors that include risk assessment and vehicle use. Obviously, every time you start your car and get on the road, there’s a level of risk. 

So naturally, if you drive less, there’s less risk. So why not reward yourself for that and pay less for insurance at the same time? 

Using pay-per-mile insurance, you can do just that. If you drive less than 10,000 miles each year, you could be a good fit for pay-per-mile insurance and be able to slash your car insurance premium significantly. In fact, Metromile customers were able to save up to $947* after making the switch. 

3. Compare rates among car insurance providers 

Are you satisfied with your car insurance rate? Or do you want a way to figure out how to lower your car insurance rate? If it’s the latter, it’s important to take the time to comparison shop. You may have purchased a policy with your car insurance provider years ago based on a family or friend recommendation, but there may be better coverage out there now. Be sure to check among various car insurance providers to see prospective rates. You can look at traditional car insurance vs. pay-per-mile insurance and assess what is best for your unique situation. 

4. Make a switch and downsize your car 

Here’s something you may not want to hear. The type The type of car you have could be costing you more. Why? If you have a bigger or more luxurious vehicle, it’ll be more expensive to insure. If anything were to happen, the replacement costs would likely be higher. Additionally, costs can be higher with bigger vehicles because of the potential damage done to other cars in the event of an accident. If you downsize to a smaller or more fuel-efficient car, your car insurance costs may be reduced. 

5. Increase the deductible

If you have a good driving record and very rarely get into accidents, you could increase your deductible to save money on your car insurance. You generally pay more for car insurance if you have a lower deductible.

Keep in mind that your deductible is how much you need to pay before your insurance kicks in. For example, if your car needs $1,500 in repairs and your policy has a $500 deductible, you’ll be responsible for paying $500 before your insurance covers the remaining $1,000. If you increase your deductible, you might want to consider saving money to make sure your emergency fund could cover the difference to avoid any unwanted surprises later on.

6. Ask for discounts

A simple way to lower car insurance is to ask for discounts! (yes, really). It often goes unnoticed, but insurance companies have different discounts available depending upon your personal situation. When you signed up, you might have been unaware of the potential discounts that you qualified for. 

Additionally, your situation may have changed since you first purchased your policy, and you may now qualify for a discount. 

A common car insurance discount is a multi-vehicle discount if you insure more than one car on the same policy. There are also rate reductions available in some states based on the type of job you have, whether you’re married, or there may be rewards for being a safe driver. These discounts can add up, so it’s worthwhile to call your insurer to see if there are any available discounts you may qualify for. 

7. Review a car’s safety and anti-theft features

Your car’s unique safety and anti-theft features can help you score a lower car insurance premium. Your car’s airbags, anti-theft devices, brakes, and more all affect the overall safety of your car and can also affect how likely the car is to be stolen. If you reduce some of these risks by adding more safety features or getting a car that already has these features, you may be able to reduce your car insurance rate. 

8. Consider temporarily changing your coverage

Your car insurance policy should work for you. Fortunately, Metromile and some other insurance companies let you personalize your policies, including your coverage limits and totals. You can ask your insurer about any optional coverage unique to your state that you could temporarily reduce to help you save, for example.

Also, if you finance your car, review your financing information, as your lienholder or lease company could have coverage requirements or require you to let them know if you make any changes to your insurance policy.

If you do make any changes, make sure you remember to review your policy again later. You don’t want to get caught without the coverage you might need when you return to your usual driving habits.

9. Enroll in a defensive driving course 

Defensive driving courses aren’t just for new drivers. If you want to learn how to lower your car insurance, enrolling in a defensive driving course may help. 

This may also help you lower your driver’s license points in the case of a traffic ticket. Some insurance companies may reward you for taking a proactive role in promoting driver safety. 

10. Boost your credit  

There are various factors that can affect your auto insurance rate. In some states, insurers use your credit information to assess overall risk. 

If you want to learn how to lower car insurance, it’s best to boost your credit rating, so it doesn’t negatively impact your car insurance premium. Your best moves are to pay your bills on time and keep your overall balances low compared to your credit limits. Be mindful of borrowing too much and opening up too many new credit accounts in a short period of time. 

The bottom line 

If you’re wondering how to lower your car insurance, use these ten tips to help you get the best insurance rate possible. If you’re a low-mileage driver, your best bet might be to switch to pay-per-mile insurance coverage. If you’re still paying for miles you aren’t actually driving, it’s time to re-think your auto coverage. Grab a free quote with Metromile today to see your potential savings. 

There’s no doubt that getting into a car accident can shake you up in every way. It can do a number on your nervous system and put a damper on your day. But when it comes to types of car accidents, they differ in severity. There are the types of accidents that can result in injury and (gulp) death. 

On the other hand, there are fender benders, which  are typically minor and more of an annoyance to your day than a life-threatening accident. They’re also one of the most common types of accidents as well.

According to a report on Traffic Safety Facts in 2016 by The National Highway Traffic Safety Administration, about half of all accidents aren’t reported to the police and involve only minor property damage and no severe injuries. More recent data in 2019 shows that property-damage-only crashes have the highest numbers, coming in at more than 4 million, which is about double the amount of injury and fatal crashes combined. Read on to learn what to do in a fender bender and what you should know. 

What is a fender bender, exactly? 

You’ve probably heard the term before, but what is a fender bender? According to the Merriam-Webster Dictionary, the term refers to “a minor automobile accident.”

The fender of your car is the part of the vehicle that curves over the wheels of the car to protect it. When you get into a fender bender, the fender can bend and become indented — hence the name fender bender. In general, these types of accidents cause minor or cosmetic property damage but typically not personal injuries. 

Top reasons fender benders happen

Fender benders are so common because it doesn’t take much to get into a minor accident. Your attention strays for a second when seeing an incoming text and suddenly you rear-end the person in front of you. Here are some common fender bender examples. 

• A driver doesn’t brake on time and rear-ends the car in front of them (this could be from texting, not paying attention, not slowing down far enough in advance, etc.)
• A driver is backing up and hits another car or vice versa — the other car hits the driver backing up. This could happen in a parking lot, narrow street, or areas with blind spots. 
• A driver isn’t paying close attention and hits a parked car (it happens!) 
• A driver doesn’t stop completely and hits another car

In many cases, fender benders occur at a slow to moderate speed which is why they typically aren’t as serious as an accident that causes injury or death. 

Fender benders can be caused by, among other things:

• Due to texting
• Being too close to another vehicle
• Not paying attention
• Not being aware of blind spots 

The best way to avoid fender benders is to stay focused, avoid distractions, and practice defensive driving. 

How to report a fender bender and file a claim 

Even if you stay on your A-game while driving, that doesn’t account for other people. Other drivers could be distracted and within mere seconds end up hitting you just enough for some bumper damage. Whether you’re at-fault or the other party is, here’s what to do in a fender bender.

Step 1: Stay calm and assess the situation 

Even though fender benders are relatively minor in the grand scheme of things, they’re still a shock to your nervous system. Take a deep breath and assess the situation. Is anyone hurt? Can everyone move, walk, and breathe properly? 

After determining that everyone is okay, then you can move the car to a safe spot and take a look at the damage on the vehicles. If there are injuries, call for medical attention right away. 

Step 2: Get to a safe spot 

Before you take an inventory of the damage, make sure to get to a safe spot. You might be in the middle of the road or blocking traffic, so see if you can go to the side of the road. If not, put on your emergency lights to remain visible to other drivers. 

Step 3: Take photos and exchange your information with the other driver 

In order to file a claim with insurance, you want to have all the information you need. First, start by taking photos of the car at all possible angles that include any damage. Next, you want to exchange your personal and car insurance information with the other driver. Each party in the fender bender should have:

• Full name
• Address
• Phone number
• Car insurance policy number
• Car insurance provider
• Details about time, date, location, etc. regarding the fender bender 

Getting all of this information ahead of time can make filing a claim easier and may help expedite the process.

Step 4: File a police report 

You also want to file a police report regarding the accident to have a paper trail. That can help your insurance claim. A police officer may come to the site of the fender bender or you may need to go to a station to file a report. In some cases, you may be legally required to file a police report if the property damage is over a certain amount. For example, in California that amount is $1,000. You can check out state reporting requirements here.

Be sure to get a copy for yourself to have it ready for your insurance. In the case of a fender bender, some people think it’s not necessary to call the police but it can help with your claim and make things official. 

Step 5: Contact your car insurance provider and file a claim 

After a fender bender or any accident, you want to contact your car insurance provider ASAP. Give them the information first regarding what went down. Give the insurance agent all of the details of the accident and file a claim. You’ll pay your car insurance deductible and submit a claim to receive funds for repairs. 

What to do after filing a car insurance claim for a fender bender 

After filing a claim for a fender bender, get the claim processed and pay your deductible. Once that happens, you may be eligible to receive funds to cover repair costs. 

Depending on your car insurance provider, you may need to do one of the following to get an estimate for repairs:

• You may have to submit photos 
• Go to an auto repair shop 
• An insurance adjuster may come to review the damage to your vehicle 

Once you’ve paid your deductible, if applicable,and received an estimate, you can go to an auto shop of your choice to fix the vehicle. If you’re unsure of options, you can always ask your car insurance provider for recommendations. 

How to prevent fender benders 

Fender benders are no fun to deal with. On one hand, you’re likely safe and okay, but on the other hand, you now have paperwork and repairs to deal with. Sometimes these things are out of your control but if you want to prevent fender benders, you can take some proactive measures. 

• Make sure there’s enough space between you and other cars on the road 
• Turn your phone off or put it on silent while behind the wheel
• Take extra precautions and drive slowly during severe weather conditions
• Practice defensive driving
• Brake on time to make full stops at red lights as well as stop signs 
• Follow all traffic signs
• Be aware of blind spots
• Drive slowly when backing up 

Taking these steps consistently can help you do your part to avoid a fender bender. 

The bottom line 

Figuring out what to do in a fender bender can be stressful, but following these steps can make the process smoother. Fender benders are nobody’s cup of tea, but they’re quite common. You can do your part to stay safe on the road and if you find yourself dealing with a fender bender, contact your insurance right away. 

If you’re looking for an insurance company that offers a simple way to file a claim, check out Metromile. You can use AVA, the AI claims assistant to walk you through the process. On top of that, you can score affordable coverage that you pay by the mile alongside a low base rate, so you never pay for more than you have to. Get a free quote with Metromile to see how much you could save. 

Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

You’re reviewing your monthly expenses and combing through the list and aside from food and housing, there’s one number that jumps out at you — your car insurance. If you’ve checked your car insurance bill and wondered “Why is my car insurance so high?!”, there are a variety of reasons. Read on to learn what factors make up your car insurance rate and why your car insurance might be expensive.

The type of car insurance you have 

If you look at your bill and let out a deep sigh and think “Why is car insurance so expensive?” it might have something to do with the type of insurance you have. 

Traditional car insurance rates take into account a number of factors that we’ll go over later, but you typically pay a standard monthly premium. You pay the same amount regardless of how much you drive. 

In many cases, that doesn’t make the most sense. When you drive more, you’re taking on more risk. But the converse is also true. If you drive less, you take on less risk and there is less wear and tear on the vehicle. Given we’re in pandemic times and many people have made the shift to working from home, you might be driving less than you ever have. Why wouldn’t you want to be rewarded for that?

The good news is you can be if you use pay-per-mile auto insurance. Pay-per-mile auto coverage with Metromile offers you the ability to pay a low base rate each month while paying just several cents for each mile you drive up to 250 miles per day. You pay for gas by the gallon, why not pay for insurance based on the miles you actually drive and not for anything more? 

Using Metromile, on average customers have saved $741 per year*. Imagine putting that money in the stock market, toward your student loans, or for a fun vacay. The type of insurance you have can heavily impact how much you pay for car insurance. 

Your location 

You know the saying “location, location, location” when it comes to real estate evaluations? Your location and where you live affect not only real estate values but also your car insurance. 

Consider how where you live might add additional risk factors that play into your car insurance rate. For example, do you live in a congested, population-dense city where the streets are narrow, parking is hard to come by, and break-ins are fairly commonplace? Or do you live somewhere more rural, where the streets are wide, there are more covered garages, and fewer instances of theft and damage? The weather where you live may also impact the rate as well. 

As you can see, there are many factors that are location-dependent that ultimately affect your car insurance rate. Car insurance providers use data from your zip code to make risk assessments about your area. 

How old you are 

In some cases, you might think age is “just a number” but that’s not the case when it comes to car insurance. If you’re a younger driver, you’re much more likely to have a higher car insurance premium compared to someone with more years of experience under their belt. 

Why? Well, it comes down to experience and risk. As a younger driver, you have less experience on the road and have a higher likelihood of an accident. In fact, according to CDC data, car accidents are the second leading cause of death for teens in the United States. 

The risk of dying in a car accident is about three times higher for teens ages 16 to 19 compared to drivers who are 20 and older. Teen male drivers within the 16 to 19 age group were two times more likely to die in a car accident compared to female drivers. On top of that, the risk of a car accident is higher for teens within the first few months of getting a driver’s license. 

Your driving history 

If you’re scratching your head thinking “Why is car insurance so expensive?” the first thing you want to consider is your driving history. Your driving history, or driving record, may play a big role in your car insurance rate. 

For example, if you have an at-fault accident or a speeding ticket on your record, that can affect how much you pay for car insurance. In fact, the financial site Bankrate.com states that drivers can see an average car insurance premium increase of 38% after an at-fault accident. 

If you have a DUI or DWI, that number could be even higher. If you have many back-to-back incidents, your car insurance provider may even drop you, according to the Insurance Information Institute (III). 

The type of coverage you have 

When you get car insurance, there are different types of coverage you can get. For example, if you get comprehensive coverage and collision coverage, that will be at a higher price than liability only. Comprehensive, collision and liability in one policy can protect your finances in case of an accident. 

Those policies are higher priced because they cover more and help recoup costs for damages you may incur in case of an accident. Typically, you simply pay the car insurance deductible and your car insurance provider covers the rest. 

According to financial site WalletHub.com, liability coverage is on average 64% lower on its own than when combined with collision and comprehensive coverage. Most states require minimum liability coverage. While that may be more affordable, you also get what you pay for. So if you get in an accident, the financial burden may fall mostly on you. 

 Credit-based insurance score 

Your credit score and credit report aren’t just for applying for a loan or credit card. In fact, some states allow use of your credit information as a factor when determining car insurance premiums as part of creating a credit-based insurance score. The reasoning is that those with poor credit or no credit typically have a higher likelihood of filing a claim, according to the Insurance Information Institute. 

If you think this is an unfair metric to determine credit-based car insurance scores, there are some states that agree and have banned the use of credit scores in some capacity as it relates to car insurance. 

If you’re not in those states, the best way to boost your credit score is to make payments on your loans on time and in full, when possible. Some states may not use your credit score to set the car insurance rate but may have restrictions based on whether your policy can be canceled or non-renewed due to your credit. 

Your car’s make and model 

Do you dream of driving a corvette or mustang? You may end up paying more for car insurance because of it. In fact, your car’s make and model affect your car insurance rate. All of these factors play into the safety of the vehicle as well as how likely they are to get stolen. 

Cars that tend to be fancier and more expensive also have higher rates, as do newer cars and electric cars. So if you’re thinking of buying a car, you might want to consider how the make and model will affect your car insurance rate. 

Your insurance record 

If you want to know why is car insurance so expensive, you also want to consider your insurance record. Having car insurance is important as a driver. If there are gaps in coverage, even for a short period of time, it may impact your car insurance premium in certain states. If you switch car insurance providers, make sure there isn’t a lapse in your car insurance coverage. 

The number of miles you drive 

Do you drive a lot? That could impact your car insurance premium as well. Every time you get on the road, you’re gambling a bit with safety. The more miles you drive, the more risk you have which insurance providers have to take into account. 

When you sign-up for car insurance, you might have to provide the number of miles you drive per year which can affect your rate. If your mileage shifts, it makes sense to contact your car insurance provider. If you don’t drive that often, pay-per-mile insurance can make a lot more sense for your budget.

The bottom line 

If you’ve ever wondered “Why is my car insurance so high?” now you know there are many factors that affect how costly your premium is. There are some things that are out of your control but there are other things you can do to make car insurance more affordable. If you’re a low-mileage driver, check out pay-per-mile auto insurance. Don’t pay a penny more than you need to and only pay for the miles you drive, along with an affordable base rate. Get your free quote today.

​​Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

*Average annual car insurance savings by new customers surveyed who saved with Metromile in 2018.