• Learn about surcharges and discounts for your auto insurance policy.yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
  
  Auto insurance protects you and your family from financial disaster by covering you in the event of an accident. While premiums vary by state, there are discounts that are common to the industry. There are also surcharges that can cause your premiums to increase. When shopping for auto insurance, it's helpful to understand both of these.
  
  

Tickets

• If you have anything other than a parking ticket, an insurance company may assess a surcharge to your policy. They do this because you represent an increased risk to the insurer for your risky behavior on the road. This is especially true for speeding tickets. On the other hand, some insurance companies offer you a discount if you've never had a ticket within a specified number of years.
  
  

Accidents

• If you have an accident, the insurance company may assess a surcharge to your policy. The more accidents you have, the higher your ultimate premium. These surcharges can sometimes be removed by taking a safe driving or defensive driving course approved by the insurance company. Likewise, some insurance companies offer discounts for having no accidents within a specified number of years.
  
  

Age

• In some states, being younger than 25 is reason enough for insurance companies to add a surcharge to your premiums for the additional risk of insuring an inexperienced driver. This surcharge is typically removed after you've turned 25. However, being older than 70 can also earn you a surcharge, as insurance companies have learned that older drivers may present special risks because of their advanced age and declining motor skills.
  
  

Educational Courses

• Defensive driving courses often offer a discount on your insurance premiums after completion. These courses are called "defensive driving" courses and are a form of driver's education. Completion of these safe driver or "defensive driver" courses will earn you a certificate that is then turned in to the insurance company. The insurance company discounts your premium by a specified percentage, typically 10 percent.
  
  

Safety Equipment

• Insurance companies often offer you a discount for having safety equipment, such as front and side airbags, passive and active security systems, automatic seat belts, having your Vehicle Identification Number (VIN) etched into the glass on your vehicle as a theft-deterrent.